What Every Visitor and Host Needs to Know

In a bold move to tackle climate change and environmental degradation, the state of Hawaii has passed a new law introducing a $25 “Green Fee” on all hotel and short-term vacation rental stays. Passed in May 2025, this initiative isn’t just another tourist tax—it’s a shift toward environmental responsibility and sustainable tourism.

Here’s what travelers and short-term rental (STR) hosts need to know.

What Is the Hawaii Green Fee?

The Green Fee is a flat $25 tax charged per stay in a hotel, resort, or short-term rental across Hawaii. It’s different from existing taxes like the Transient Accommodations Tax (TAT) or General Excise Tax (GET)—this one is exclusively dedicated to environmental efforts.

Hawaii’s natural ecosystems are under pressure from over-tourism, rising sea levels, and pollution. The Green Fee is meant to directly fund preservation and climate resilience programs.

Why Was the Green Fee Introduced?

Hawaii hosts nearly 10 million visitors per year, which puts serious strain on a state with just 1.4 million residents. More tourists mean more pressure on beaches, reefs, infrastructure, and local communities.

To address this, Governor Josh Green signed the Climate Impact Fund bill into law, which is expected to raise $68–$100 million annually. The revenue will be used for:

• Beach restoration
• Coral reef protection
• Wildfire prevention
• Forest conservation
• Community-based climate initiatives

Learn more about the Climate Impact Fund and legislative goals here.

How Does It Work?

• $25 per stay, not per night
• Applied to all short-term rentals, hotels, and resorts
• Collected at booking checkout via platforms like Airbnb, Vrbo, or directly through hotels
• Sent to the state and allocated to Hawaii’s Climate Impact Fund

It’s a separate charge from the 10.25% TAT and the 4.5% GET.

Who Pays and Who Manages It?

Guests:

Visitors will see the $25 fee added to their total bill at checkout. It’s unlikely to deter most travelers, especially those coming for longer stays or special trips.

Hosts and Hotels:

STR hosts and hotel operators must ensure the fee is properly displayed, itemized, or included in pricing breakdowns to avoid confusion. Airbnb and Vrbo are expected to automate this, but hosts should double-check to remain compliant.

Use this as an opportunity to educate guests on why the fee exists—and how their trip supports local conservation.

Impact on Short-Term Rental Hosts

The fee itself won’t change how you operate, but the broader implications matter.

1. Environmental Regulation Is Now Part of the Business

This fee is just one piece of Hawaii’s larger strategy. STR hosts should expect tighter enforcement on zoning, noise, energy use, and shoreline protections.

2. Transparency Builds Trust

Clear communication around taxes, fees, and environmental contributions helps avoid misunderstandings. Hosts who fail to disclose the Green Fee risk bad reviews and guest frustration.

Will Other States Do the Same?

Hawaii might be first, but it won’t be the last. As climate resilience becomes a bigger part of tourism planning, other states—especially environmentally sensitive ones like California, Oregon, and Florida—could follow suit.

Already, similar visitor-focused climate levies have been proposed in places like Venice, Italy, and implemented in select regions of Spain.

See how visitor fees are trending globally via the UN World Tourism Organization.

The Bottom Line: A Greener Future for Island Hospitality

Hawaii’s Green Fee represents a major pivot in how tourism and environmental stewardship intersect. While it’s a small price for guests, it could have lasting positive impacts if well-managed and transparently communicated.

For hosts, it’s not just about compliance—it’s about being part of a sustainable future.

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