From January 1, Hawaii increased its statewide Transient Accommodations Tax from 10.25 percent to 11 percent. Counties are also allowed to levy an additional tax of up to 3 percent, further raising costs for visitors staying in hotels, resorts, and short-term rentals.

Governor Josh Green has referred to the hike as a “green fee,” saying the additional revenue will be used to help the state address climate change challenges. The increase is expected to bring in around $100 million annually.

“As an island chain, Hawaiʻi 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," Green said in a statement last year, adding, "Hawaiʻi is at the forefront of protecting our natural resources, recognizing their fundamental role in sustaining the ecological, cultural and economic health of Hawaiʻi."

The expanded tax framework had also included a plan to apply the levy to cruise ships docking in Hawaii for the first time. However, that provision has been temporarily suspended after the cruise industry challenged the move in court.

The famous volcanic tuff cone right outside of Waikīkī offers views down the coastline and over the city. Photo: Hawaii-gohawaii.com FB

A spokesperson for the Hawaiʻi Department of the Attorney General told Travel + Leisure that the state is aware of an injunction issued by a federal appeals court blocking the cruise ship tax. The spokesperson added that the state believes the law, known as Act 96, is legal and expects it to be upheld once the expedited appeal is heard.

The legal challenge was filed by the Cruise Lines International Association on behalf of its member companies.

"This case involves important questions about how federal and state laws interact in regulating maritime commerce—principles rooted in long-standing constitutional safeguards that protect free and open ports nationwide," the group said in a statement shared with Travel + Leisure.

According to data from Hawaii’s Department of Business, Economic Development and Tourism, more than 130,000 passengers arrived in the state on out-of-state cruise ships last year up to November, marking a 12.6 percent decline compared to the same period in 2024. Major cruise operators visiting Hawaii include Carnival Cruise Line, Celebrity Cruises, and Royal Caribbean.

Hawaii’s move reflects a broader trend among popular destinations seeking to manage the impact of tourism. Last year, Venice introduced a fee for day visitors during peak periods, while the United Kingdom has proposed a new tax on overnight stays in major cities such as London and Manchester.

Hawaii offers everything from beaches and marine life, snorkelling among tropical fish to big-wave surfing. Photo: Hawaii-gohawaii.com FB

Tourism in Hawaii remains strong because the islands offer a unique combination of natural wonders and cultural experiences that are hard to find elsewhere. Many travellers come to see iconic landscapes such as volcanic craters, lush rainforests, and dramatic coastlines, with places like Diamond Head near Honolulu providing panoramic views that make Hawaii instantly recognisable.

Sightseeing is consistently one of the most popular activities reported by visitors from around the globe, showing how much natural beauty drives interest in the islands.

Beaches and marine life are also major draws. Waikiki Beach on Oʻahu is famous for its golden sand and gentle surf, while other coastal spots around the state offer everything from snorkelling among tropical fish to big-wave surfing.

Beyond water-based attractions, cultural sites and events add depth to the visitor experience. Traditional music, hula performances, and festivals like the Merrie Monarch Festival attract audiences who want to connect with Hawaiian heritage and arts.

Hawaii’s appeal is further broadened by its diversity of activities, catering to a wide range of interests. Adventure seekers can explore national parks with active volcanoes, while others come for relaxation, local cuisine, or special events such as the Ironman World Championship in Kailua-Kona. This blend of natural beauty, cultural richness, and varied recreational options helps explain why millions choose Hawaii as a destination year after year.