This legislation comes in response to the increasing frequency of natural disasters, particularly the devastating Maui wildfires in 2023, which highlighted the urgent need for climate adaptation measures.

The Green Fee is expected to generate approximately $100 million annually, which will be allocated to various climate initiatives, including replenishing sand on Waikiki beaches and enhancing fire safety measures.

Although initially proposed to be directed to a dedicated fund, the revenue will instead go into the state's general fund, requiring the governor to request specific allocations for climate projects.

The funds raised will also support projects aimed at protecting native ecosystems and managing the environmental impacts of tourism, highlighting the interconnectedness of tourism and environmental health.

Governor Green articulated the necessity of proactive measures to address climate challenges and hopes that Hawaii's approach will inspire other tourist destinations facing similar issues.

On May 27, 2025, Hawaii's Governor Josh Green signed legislation to implement a 'Green Fee' on hotel stays, making Hawaii the first U.S. state to adopt such a measure aimed at funding climate change resiliency projects.

Starting January 1, 2026, this new fee will increase the state's transient accommodations tax by 0.75%, raising the total tax on hotel accommodations to nearly 19%.

Local leaders in the hospitality industry, including Outrigger Hospitality Group President Jeff Wagoner, expressed support for the Green Fee, recognizing its potential benefits for environmental sustainability.

State Rep. Adrian Tam emphasized the importance of transparency in how the tax revenue is spent, warning that neglecting Hawaii's natural beauty could jeopardize the tourism economy.

A coalition of conservation groups has pointed out a significant funding gap for conservation efforts in Hawaii, suggesting that the Green Fee could help bridge this financial shortfall.

The legislation follows a previous unsuccessful attempt to pass a similar fee in 2024, leading to the establishment of a Climate Advisory Team to advocate for this new measure.

The Green Fee will apply to all tourists, including those staying in hotels, short-term vacation rentals, and cruise ships, ensuring that all visitors contribute to the state's climate initiatives.