In May, Hawaii became the first state in the U.S. to adopt a green fee tax on hotel rooms stays and short term visits, including cruise visitors. Earlier this week, U.S. District Judge Jill A. Otake denied a request that sought to stop Hawaii from enforcing the new law on cruise line passengers.
Funds generated by the fee were planned to help protect Hawaii’s local environment and deal with the increasingly challenging impact of global climate change.
Specifically for cruises, the tax amounts to 11% on gross fares paid by cruise passengers, beginning in 2026. The tax would be prorated for the number of days the ships are in Hawaiian ports.
Industry association CLIA, the Cruise Lines International Association, challenged the new tax in court, along with a local cruise-aligned company in Honolulu. Part of the lawsuit alleges that the new law would violate the Constitution by taxing ships for entering a Hawaiian port.
“Cruise tourism generates nearly $1 billion in total economic impact for Hawai‘i and supports thousands of local jobs, and we remain focused on ensuring that success continues on a lawful, sustainable foundation,” said association spokesperson Jim McCarthy in a statement.
Hawaii’s Attorney General Anne Lopez said in a statement that her office will continue to defend the law.
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