by Donald Wood
Last updated: 8:15 AM ET, Fri August 29, 2025
A group of cruise operators has filed a federal lawsuit against
the state of Hawaii over a new law that taxes cruise ships, similar to the one
imposed on hotel operators.
According to Hawaii
News Now, the Cruise Lines International Association (CLIA) said as part of
its lawsuit that the Hawaiian government violated the United States Constitution
when it passed an 11 percent tax on out-of-state cruise passengers in January.
The tax on cruise lines is similar to the transient
accommodations tax levied against hotel and vacation rental guests.
“Here you have a floating hotel, right? You have a floating
hotel,” Hawaiian Senate Economic Development and Tourism Committee chairperson Sen.
Lynn DeCoite said. “The hotel industry has paid their fair sure for the past
years.”
The CLIA’s lawsuit claims the “Supreme Court long has
recognized, the Constitution’s Tonnage Clause bars States from imposing any charge
for the privilege of entering, trading in, or lying in a port.”
In addition, the lawsuit stated that an average family would
incur hundreds of dollars in extra costs for a cruise to Hawaii, potentially
causing travelers to “forego trips to Hawaii in favor of other destinations.”
Data shows that more than 150,000 out-of-state cruise line
passengers came to Hawaii last year.
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