Hawaii is a premier destination when travelling the world, but due to the most recent changes made in 2025, travelling to this state does come with some restrictions. The state has begun implementing a groundbreaking Green Fee, which is a climate-impact accommodation tax. Even though most COVID-related constraints have been removed, this fee serves as a modern financial restriction.
In this article, we’ll cover the following topics: The Current Situation with COVID – Related Travel Rules in Hawaii, The New Green Fee (Increased Accommodation Tax) and How Much it Will Cost You/, the Notable Utilization, The Related Controversies and Legal Issues, The Rounded Implications on Sustainable Tourism, Tips on How Travelers Can Prepare a Budget, and the Legal Challenges and Controversies.
1. COVID-19 Travel Restrictions: Limit Update
Hawaii, at the moment, no longer implements strict COVID-19 entry requirements (like compulsory quarantine, testing) on most travellers.
As the pandemic has commended most travellers, the uploaded results through the Safe Travels digital system require a negative NAAT (PCR) test within 72 hours of the last segment of the flight.
Quarantine rules were, in some instances, particularly for travellers with no test results, self-isolated for 10 days.
However, those restrictions during the time of COVID-19 have been completely phased out. More pressingly, the testing/quarantine regulations have been removed for some time now. COVID-19 regulations have been removed.
In summary, the New Lodging Tax is the most recent and major concern for the majority of travellers.
The New Green Fee: What is it?
In May of 2025, Governor of Hawaii, Josh Green, signed into law the first-ever climate impact fee based on the tourism sector, specifically on lodging accommodations, and it is named Senate Bill 1396, also known as Act 96.
Starting January 1, 2026, the state of Hawaii’s Transient Accommodations Tax (TAT) will increase by 0.75%, meaning that the tax will increase from 10.25% to 11%
Cruise ships will be the first to be subject to the TAT (11% prorated for the number of days docked at a port) that are docking at Hawaiian ports.
The law states that the additional revenues be directed solely for climate resilience and environmental improvements.
A Green Fee Advisory Council will be standing to determine and control the spending of the funds.
3. Financial Impact on Travellers: How Much More Will You Have to Pay?
0.75% may sound like a nominal fee, but when you scale up to a $400 hotel room, it adds and amounts to $3 more charge per night on the Green Fee, and that is a $400 hotel room rate, which is about average.
However, it is more than just that fee: when combined with the County surcharges (most counties are adding ~3%) and the General Excise Tax (GET), the total lodging tax burden is about 19% of the $400 hotel room rate.
Travel budget reporting indicates that even the most modest rates will see a significant increase in tax starting in 2026.
4. For What Purpose Is the Green Fee? Funding the Money
Hawaii’s policymakers correctly framed the increase in such tax as a money-grab without any responsibility or investment in the future of the islands. Some of the most important funding priorities are:
Shoreline Restoration and Protection – Preserving and protecting beaches from erosion and sand replenishment, as well as controlling access to the coast.
Aloha Hawaiian Vacations
Mitigation of Wildfire Risk – Creating fire breaks, controlling invasive grasses, and implementing measures for fire-resilient landscapes.
Resilience of Infrastructure – Fortifying public structures, trails, and other important community assets to better cope with the destructive consequences of climate change.
Hawaii Governor’s Office
Environmental Responsibility – Supporting projects to protect the native flora and fauna, invasive plant management, and the maintenance of parks and trails.
NATIONAL CAUCUS of ENVIRONMENTAL LEGISLATORS
Estimates of the Green Fee range in the order of 100 million dollars per year. This would be a significant amount for climate change adaptation in Hawaii from a cash flow perspective.
5. Controversy, Resistance, and Legal Challenges
Critics say the Green Fee is a progressive climate solution; however, CLIA filed a lawsuit with regard to the cruise ship component of the tax, alleging that it violates federal laws such as the Tonnage Clause and will negatively impact cruise tourism. The lawsuit has become one of the most controversial.
Kiplinger
Concerns regarding the transparency of the fee in relation to climate change are valid. Revenues are described in relation to climate change, and the fee goes directly to Hawaii’s general fund as opposed to the more information green fund as was originally proposed.
Kiplinger
Potential discouragement of tourism is another expressed concern. Civil Beat notes that even minor additional expenses on travel can motivate consumers to select alternative locations. Both environmental advocates and hoteliers are closely monitoring these additional expenses.
6. Practical Tips for Travellers
Green fee impacts should be considered in planning travel to Hawaii for late 2025 and beyond.
Account for the fee in your budget. Budget planning should include the increased TAT when planning for accommodation costs.
Review the invoice. Standing alone, the fee may not show as “Green Fee”; it’s often included in the total tax rate.
Beat of Hawaii
Account for all taxes. County surcharges and the General Excise Tax should not be excluded from the total when estimating the nightly rate.
Choose your lodging wisely. Every tax, including the short-term rental tax, vacation home and hotel taxes, applies to every accommodation. Support sustainable tourism; the Green Fee provides a way to support, especially if environmental protection is of concern.
Fund Allocation: Monitor how the Green Fee Advisory Council disburses funds and track any new developments concerning the legal challenge from cruise operators.
Broader Implications: Tourism, Climate & Sustainability
With the introduction of this fee, Hawaii will become the first state in the United States to explicitly and directly link climate adaptation to the taxation of tourists’ accommodation and lodging.
Hawaii Governor’s Office
Green Fee: Offsetting the Environmental Impact of Tourism in Hawaii. Policy decision makers see it as reasonable and equitable to carry the environmental burden, as tourists are the primary users of Hawaii’s and Over tourists Hawaii’s Natural Resources.
Hawaii Governor’s Office
Model of Sustainability: Such Received Revenue and Fee Structures Can Encourage Other Climate-Sensitive Touristic Destinations to Adopt These Climate-Sensitive Economic Measures.
Economic Balance: Revenue Expected from These Climate Finances is Essential, but it needs Economic Balancing. Overfinancing and Excessive Revenue May Deter Touristic Visits, and Financing May Lead to Insufficient Environmental Restoration. Conclusion
The expression
Hawaii travel restrictions would have centred around COVID-related quarantine and testing. However, the biggest new travel restriction coming in 2025–2026 is financial. The Green Fee is an eco-waste hotel tax. Starting January 1, 2026, there is going to be a 0.75% increase in the transient accommodations tax (TAT). Hawaii’s state TAT is going to be 11% plus your nightly rate is going to increase due to county surcharges and general excise tax.
This is an extra expense, true, but it’s in your nightly rate because you’re contributing to the stewardship of the pristine Hawaiian paradise landscape. Changing your travel plans is an essential part of planning a trip to Hawaii, and this is a burden, a duty, or a cost. However, it is a change every traveller should plan around.
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