Hawaii's Cruise Tax Will Change The Way Visitors Plan Island Vacations (Here's What To Know)

As you float past tropical and volcanic landscapes, discover pristine beaches, and participate in some gorgeous island-hopping, it's no wonder that cruising around Hawaii is so popular. According to the Hawaii Tourism Authority, out-of-state visitors on cruises spent nearly $63 million in 2023, and in 2026, tourists are likely going to be shelling out even more. However, Hawaii intends to impose an 11% tax on cruise ship passengers to help offset the effects of climate change. It's part of the so-called "Green Fee," which went into affect in May 2025 as a climate tax to make travel to Hawaii more expensive across the board, whether you're staying in a hotel, resort, Airbnb, or a stateroom on a ship. 

The idea, according to Governor Josh Green, M.D., is to protect Hawaii's natural resources. In an official statement, Green says, "Hawaii cannot wait for the next disaster to hit before taking action. We must build resiliency now, and the Green Fee will provide the necessary financing to ensure resources are available for our future."

The idea of taxing tourists is hardly novel. A lot of popular destinations charge visitors: in Venice, you'll pay €5 (about $6) to enter the city on peak days in 2026, and Tenerife is implementing an eco tax of €10 to €25 ($12 to $30) for travelers who want to access the island's hiking trails this year. But the Green Fee is unique as it's tied to the threat of climate change. 

So how exactly will the country's first-ever climate impact fee change the way travelers plan their vacations to Hawaii? First, it may rule out some people from traveling to the island chain altogether. Hawaii has never been a budget-friendly destination, and the costs of everything from cruises and hotels to rental cars and restaurants are steep. The Economic Research Organization at the University of Hawaii estimates that tourist arrivals will decrease by about 5% by mid-2026. 

Second, the Green Fee may push some travelers to consider staying in a hotel instead of going on a cruise. While resort-goers are familiar with paying additional fees in Hawaii, the new legislation is the first to impose the tax on cruise ships. Cruises will be subject to an 11% tax, and the Green Fee will increase the accommodation tax by 0.75%, starting in January 2026. In other words, it's a nominal increase for hotel guests, but a sizeable one for cruise ship guests. Some travelers may choose a shorter cruise itinerary to save on the nightly fee. 

However, Hawaii could see a wave of travelers planning cruises before the Green Fee goes into full effect. The updated taxes are already being charged at hotels, resorts, and vacation rentals, but not on ships. Although the Green Fee was set to be enforced on January 1, a federal appeals court has temporarily blocked the state from charging the tax on cruise ships. This is the result of a months-long battle between the state of Hawaii and the Cruise Lines International Association, which brought a lawsuit against the state, claiming that the new law violates the Constitution. So if you're set on planning a vacation to Hawaii in 2026 and budget is a top concern, seize the day and book a cruise. Otherwise, just remember: the extra taxes will help keep Hawaii beautiful.