Hawaii announces it will charge new fee on vacationing Canadians

As if travel wasn't expensive enough, Canadians heading to Hawaii will soon have to shell out just a little bit more on their next vacation.

Starting in 2026, Hawaii will be the first U.S. state to charge visitors a climate impact fee or "green fee." The new fee is set to raise the transient accommodations tax (TAT) by 0.75 per cent to a total of 11 per cent.

The green fee is expected to raise US$100 million each year and is meant to address the impact of climate change, and create a source of funding "for environmental stewardship, hazard mitigation and sustainable tourism."

Tourists booking hotels or short-term rentals in Hawaii will have to pay the added fee starting next year. And for the first time, passengers on cruise ships that port in the state must also pay the increased fee to promote "equity across the tourism industry."

Although a 0.75 per cent increase doesn't sound like a lot, environmental taxes are becoming a trend in popular tourist destinations that are adopting fees to help improve infrastructure or to combat the environmental effects of overtourism.

And Hawaii remains a popular destination for Canadians. From January to June, over 226,000 Canadian tourists visited the state, according to the Hawaii Tourism Authority.

"I mahalo (thank) the tourism industry for stepping up and collaborating on this initiative, which will preserve Hawaiʻi for kamaʻāina (residents) and visitors alike," said Hawaii Governor Josh Green. "The fee will restore and remediate our beaches and shorelines and harden infrastructure critical to the health and safety of all who call Hawaiʻi home, whether for a few days or a lifetime."

Other places charging tourists an environmental tax include the Mexican state of Baja California Sur, known for its nightlife, marine life, and luxury resorts. Visitors must pay the Embrace It Tax, which costs C$34 per person. Funds will go towards environmental protection and infrastructure.

Tourists arriving by cruise ship to the popular Greek islands of Mykonos and Santorini must pay €20 (C$32) per person until Sept. 30, after which the tax will be reduced to nearly half. The money will go towards maintaining the islands' strained infrastructure, which has been overwhelmed by years of overtourism.