Hawaii Looks to Escalate Hotel Tax for Climate Change Adaptation Aid

Climate Change Funding through Hawaii's Tourist Tax

Hawaii Looks to Escalate Hotel Tax for Climate Change Adaptation Aid

A unique move by the Hawaiian legislature is on the horizon, as they propose an increase in the tax imposed on tourists staying in hotels, vacation rentals, and other short-term accommodations. This new revenue will be aimed at funding projects designed to combat the effects of climate change and protect the Hawaiian environment.

To put it bluntly, this means that the monthly chill you get when your bill comes at the end of your tropical vacation could be increasing to help maintain Hawaii's beautiful islands. Projects slated for funding include restoring eroded beaches, helping homeowners strengthen their homes against hurricanes, and removing invasive species like the ones that caused the Lahaina wildfire a mere two years ago.

The bill, scheduled for a vote on Wednesday, has a high chance of passing, given the supermajorities held by Democrats in both Houses and the agreement of party leaders on the measure. Governor Josh Green has already stated his intention to sign the legislation.

The new tax will add 0.75% to the existing daily room rate tax, pushing the combined tax rate to roughly 19%. To put things in perspective, only a couple large U.S. cities - Omaha and Cincinnati - have higher cumulative state and local lodging tax rates.

Why do this, you ask? Well, the $13 billion tragedy that struck Maui and cost 102 lives is a compelling reason. The governor believes that travelers will willingly pay the increased tax. After all, it will enable Hawaii to preserve its stunning landscapes and iconic landmarks such as Maui's road to Hana and the North Shore coastline. Green has received countless messages from concerned individuals across the nation in the wake of the wildfire, asking how they could help. This, he states, is a significant way they can contribute.

The hotel industry has mixed opinions about the tax increase. Jerry Gibson, president of the Hawaii Hotel Alliance, appreciates that lawmakers have not adopted a higher increase than initially proposed. However, he admits that the state needs money for its vast environmental and conservation needs. The silver lining, according to Gibson, is that the funds will be used to improve Hawaii's environment. As long as that happens, he considers it a worthwhile investment.

Hawaii consistently struggles to raise enough money to address its environmental needs, covering everything from protecting coral reefs to managing tourist traffic and preserving wildlife. In previous years, lawmakers have even contemplated requiring tourists to pay for a yearly license or pass to visit state parks and trails. This new approach, boosting the lodging tax, represents their compromise solution, made more urgent by the Maui wildfires.

It's important to note that the funds raised from the tax increase will not completely cover Hawaii's conservation funding needs. The estimated $100 million falls short of the calculated $561 million gap. However, the state plans to issue bonds to make the most of its newfound resources. Most of the raised money will fund short-term initiatives, while a portion will support long-term infrastructure projects.

Kāwika Riley, a member of the governor's Climate Advisory Team, invokes the Hawaiian saying, "A stranger only for a day," to explain the new tax. In essence, tourists should help the state during their visit, contributing to its conservation efforts.

to make a positive impact during their stay, and caring for the places they love.

Additional Insights:

First-of-its-kind effort: Hawaii's initiative appears to be the first U.S. state to earmark lodging tax revenue specifically for environmental protection and climate change efforts[1].
Bond leverage: The state plans to issue bonds to maximize the impact of the new revenue[1].
On-going conservation challenges: Issues such as protecting coral reefs, weed control, wildlife management, and trail maintenance are ongoing challenges for the state[1].
Tourist support: The governor and various advocates believe that tourists recognize the value of Hawaii's unique environment and will be willing to contribute to its preservation[1].

This unique move by the Hawaiian legislature aims to boost the tax imposed on tourists to combat climate change and protect the Hawaiian environment, marking a first-of-its-kind effort in the U.S.
The additional 0.75% to the existing daily room rate tax, totaling roughly 19%, will help raise an estimated $100 million, dealing with a significant portion of the calculated $561 million gap for conservation funding needs.
In a bid to preserve its stunning landscapes and iconic landmarks like Maui's road to Hana and the North Shore coastline, the funds from the increased tax will be used for projects like restoring eroded beaches and removing invasive species that caused wildfires.
The hotel industry's sentiments are mixed about the tax increase, with Jerry Gibson, president of the Hawaii Hotel Alliance, appreciating the compromise but expressing concern about the impact on tourism traffic.
It's crucial to enable Hawaii to address its environmental challenges, covering areas like coral reef protection, tourist traffic management, and wildlife preservation, which are ongoing challenges for the state.
Hawaii's Climate Advisory Team member, Kāwika Riley, gives us the Hawaiian saying, "A stranger only for a day," to encourage tourists to lend a hand in helping the state during their visit, ensuring that they care for the places they love.
The administration plans to issue bonds to leverage the new revenue, enabling them to make the most of the raised funds, with most going towards short-term initiatives and a portion supporting long-term infrastructure projects.
Climate change and the devastating wildfires on Maui have prompted a growing movement of concerned individuals across the nation, who have expressed interest in supporting Hawaii’s environmental preservation efforts, agreeing that science and environmental-science play vital roles in combating climate-change and minimizing its effects on the incredible environment of the island of Maui and beyond.