Bowman’s Travel Brief: Hawaii Should Raise Tourist Tax and Fees

Last month, Hawaii signed a new green fee law, becoming the first state to address climate change through a tourism tax.

They need to charge more.

The law now increases the state’s Transient Accommodation Tax (TAT) by .75%, to 11%. This fee will be applied to costs for tourism-related activities including hotels and cruise ships that dock in Hawaii.

To break that down, for every $400 spent, $3 will go towards natural resource protection.

The fee is expected to generate $100 million annually to protect the environment and support locals hit hardest by climate impacts.

Again, they need to charge more.

Three out of 400 is chump change. That’s nothing, and this type of increase won’t deter people from visiting Hawaii.

Many travelers won’t even notice a difference in cost for visiting Hawaii. They’re more likely to attribute it to the sign of the times with inflation having occurred and seemingly everything is more expensive these days.

I feel like it should be $10 out of every $400 at minimum.

I’d also say bring back that $50 visitor entry fee idea too that was floated around a couple years ago. Even if they only do $25 for it, it’s totally worth it.

Sure, these increases might keep some people from traveling to Hawaii, and while fewer tourists may be the wish of some Hawaiian residents, Americans will keep flying to Hawaii - even with higher tourist fees.

The islands are easily the most talked about tourist destination in the United States.

Price has always been a key factor for keeping people from visiting. But for those who have money and want to see Hawaii, a modest increase in tourist taxes and fees won’t stop them from booking.

With the goal to help the local environment, you’ll find some tourists will actively want to pay that fee to help contribute.

In speaking with several travel advisors following this new law, they agreed this type of increase wouldn’t stop people from visiting.

When asked how high of a fee it would have to be to really create issues, a few said $100 would probably be the number to make the most people second guess paying it. My guess there would be something about the three-digit total having an impact in the mindset of travelers. Most said $25 would be nothing and $50 could still be doable for plenty of travelers to keep booking Hawaii.

Think of how much more money Hawaii is leaving off the table right now for environmental help through an additional tourist fee. $100 million annually is a great start, but that should definitely be higher. Perhaps in time it will be.

What do you think Hawaii should do?

Let me know your thoughts and follow me on social media: @EricBowman_