A lawsuit has been filed in Honolulu challenging Hawaii's new cruise tax, arguing it violates principles related to navigable waters being a common resource and seeking to block its enforcement while the case is pending.

The plaintiffs, including cruise lines and local businesses dependent on cruise tourism, warn that the tax could make Hawaii cruises too expensive, potentially reducing bookings for 2026 and harming the local economy which relies on tourism for thousands of jobs and over $600 million annually.

This cruise tax is part of Hawaii's broader effort to combat climate change, as it is the first law in the U.S. to impose a tourism tax specifically aimed at addressing environmental issues like shoreline erosion and wildfires.

Enacted in May by Governor Josh Green, the law imposes an 11% tax on cruise fares and increases taxes on hotels and vacation rentals, creating a total tourism tax rate of nearly 19%, which significantly raises the cost of accommodations and cruises.

The law aims to generate nearly $100 million annually for climate change mitigation efforts, including addressing shoreline erosion and wildfires, by increasing taxes on various tourism-related services.

There are concerns about the tax's uniqueness among U.S. states and its potential negative impact on Hawaii's vital tourism industry, which is a cornerstone of the state's economy.

The lawsuit also argues that the impending surcharge could influence travel plans before it takes effect, possibly leading to a decrease in cruise bookings for 2026.

Cruise-related businesses and supply companies have joined the lawsuit, emphasizing the economic harm and potential decline in cruise tourism due to increased costs.

Hawaii officials, including the attorney general and county representatives, have not commented publicly on the lawsuit while it is under review.