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Hawaii Lodging Taxes Could Hit 20% As New Fees Loom

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Hawaii Lodging Taxes Could Hit 20% As New Fees Loom


Travelers to Hawaii may soon face higher lodging costs if Governor Josh Green’s latest legislative push succeeds. Proposed increases to the transient accommodations tax (TAT), alongside a new statewide green fee, aim to raise $500 million annually for climate change and wildfire mitigation—largely a cost to be borne by visitors.

The plan is said to be part of a broader response tied to the devastating August 2023 fires that destroyed Lahaina and claimed 102 lives. While versions of this idea have surfaced in past sessions even as the bills died in the legislature, this year’s push has gained some fresh urgency and traction.

What is the Hawaii accommodation tax, and what’s changing?

Hawaii’s current statewide TAT sits at 10.25%, with each county adding its own 3% surcharge. That brings the total accommodation tax to 13.25% before adding the 4.712% general excise tax. Altogether, lodging taxes have already approached 18%.

Senate Bill 1396 would increase the state TAT from 10.25% to 12% in 2026. With existing add-ons, total taxes on hotel rates could climb to nearly 20%.

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Governor Green initially proposed a 1.7% increase but scaled it back to 1% after industry opposition. He called the new proposal a compromise.

“People will still come,” Green was quoted in a recent interview. “People are still coming in giant droves. I’m meeting the hotel industry halfway.”

How Hawaii compares to other destinations.

Hawaii already ranks among the highest in the U.S. for lodging taxes. Las Vegas, for example, imposes hotel taxes between 13% and 14%, while New York City adds just over 14%. Some international destinations, like Paris or Rome, charge the equivalent of only a few dollars per night as a flat fee.

These comparisons help, in part, explain growing traveler frustration. For many, Hawaii’s cost—especially for lodging—is starting to resemble European rates, often without the perceived value. Cynthia, a reader, commented on a recent Beat of Hawaii article, “We’ve started looking at Portugal instead. Flights are longer, but once we’re there, we spend less. And we aren’t nickeled and dimed like we are in Hawaii.”

Industry pushback grows louder.

The visitor industry remains skeptical of continued tax hikes, particularly when tourism remains in recovery mode. Critics argue that taxing visitors while simultaneously investing in tourism promotion sends mixed signals.

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Some industry voices are now warning that visitors are growing wary—not just of pricing but also of the lack of clarity surrounding where the money goes. One hotel executive recently noted that without transparency and coordination, even well-intentioned measures could backfire. The concern isn’t just financial—it’s reputational.

Tom Yamachika of the Tax Foundation of Hawaii wrote: “We wonder if lawmakers aren’t thinking that the transient accommodations tax is like duct tape, in that it fixes everything.”

Several bills this session propose tapping into the same revenue stream. In addition to SB1396 and its near-identical counterpart HB1077, there is also still-active HB504, which suggests an unspecified TAT hike and an added $20-per-night charge for rooms booked through loyalty programs, such as when visitors use points or miles.

Industry groups warn that these combined efforts could overreach, creating a tax burden that deters repeat visitors and increases the appeal of competing destinations.

What is the green fee?

Governor Green’s original vision included a broad-based tourism climate fee, which is where the so-called green fee name came from. Variants of the idea include annual visitor climate licenses, per-entry charges to popular Hawaii state parks or beaches, or bundled fees tied to accommodations or even airfare.

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So far, no single version has advanced. However, it remains a legislative possibility and could emerge as a companion measure to the TAT increase.

Other destinations have implemented similar programs, including Bhutan’s Sustainable Development Fee, which is $100 per night. Different models may influence Hawaii lawmakers as they refine details, and Beat of Hawaii is currently visiting and exploring destinations envisioning similar fees.

Hawaii residents pay, too.

Because interstate commerce laws prevent states from taxing out-of-state visitors differently, kamaaina (residents) will also feel the impact of the higher TAT. Governor Green has suggested a potential tax credit to offset the cost for residents, but no concrete plan has been finalized.

For now, residents booking staycations, visiting family or doctors, or attending events that require overnight stays would face the same tax hike.

How this could impact travelers.

These changes add to an already complex cost structure for visitors. That includes resort fees, parking charges, taxes, environmental fees, and rising nightly rates, which all combine to create sticker shock—especially for first-timers.

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Fee fatigue is real. Between resort charges, cleaning fees, parking, and taxes—often layered and poorly explained—many travelers report a sense of distrust that wasn’t present in past years. That sentiment is beginning to show up in reduced stay lengths and shifting loyalty patterns.

These costs are leading some to modify Hawaii plans. Travel agencies report shorter stays, off-peak travel, and increased demand for budget options.

Will the legislation pass?

SB1396 is still alive but far from guaranteed to succeed. Similar bills failed to move forward in the past two legislative sessions. However, the Lahaina fire has shifted the political climate and placed renewed pressure on lawmakers to act.

Some argue that Hawaii’s dependence on tourism necessitates bold investment in climate resilience. Others worry that piling new taxes on visitors without transparency on how funds will be used risks undermining confidence and return travel.

The bill outlines two special funds—one for climate initiatives and one for economic revitalization—but offers few details about oversight or performance metrics.

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The bigger question for Hawaii tourism.

As Hawaii grapples with balancing sustainability and affordability, travelers and residents alike will feel the impact of these proposed changes. Whether visitors are willing to pay more for vacations in paradise—and whether lawmakers can ensure the funds are used effectively—will shape the future success of Hawaii tourism.

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No. 3 Rainbow Warriors continue winning ways against No. 6 BYU | Honolulu Star-Advertiser

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No. 3 Rainbow Warriors continue winning ways against No. 6 BYU | Honolulu Star-Advertiser


The third-ranked Hawaii men’s volleyball team had no problem recording its 11th sweep of the season, handling No. 6 BYU 25-18, 25-21, 25-16 tonight at Bankoh Arena at Stan Sheriff Center.

A crowd of 6,493 watched the Rainbow Warriors (14-1) roll right through the Cougars (13-4) for their 11th straight win.

Louis Sakanoko put down a match-high 15 kills and Adrien Roure added 11 kills in 18 attempts. Roure has hit .500 or better in three of his past four matches.

Junior Tread Rosenthal had a match-high 32 assists and guided Hawaii to a .446 hitting percentage.

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UH hit .500 in the first set, marking the third time in two matches against BYU it hit .500 or better in a set.

Hawaii has won seven of the past eight meetings against the Cougars (13-4), whose only two losses prior to playing UH were in five sets.

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Hawaii has lost six sets all season, with five of those sets going to deuce.

UH returns to the home court next week for matches Wednesday and Friday against No. 7 Pepperdine.




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Travelers Sue: Promises Were Broken. They Want Hawaiian Airlines Back.

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Travelers Sue: Promises Were Broken. They Want Hawaiian Airlines Back.


Hawaiian Airlines’ passengers are back in federal court trying to stop something most people assumed was already finished. They are no longer arguing about whether they are allowed to sue. They are now asking a judge to intervene and preserve Hawaiian as a standalone airline before integration advances to a point this spring where it cannot realistically be reversed.

That approach is far more aggressive than what we covered in Can Travelers Really Undo Alaska’s Hawaiian Airlines Takeover?. The earlier round focused on whether passengers had standing and could amend their complaint. This court round focuses on whether harm is already occurring and whether the court should act immediately rather than later. The shift is moving from procedural survival to emergency relief, which makes this filing different for Hawaii travelers.

The post-merger record is now the focus.

When the $1.9 billion acquisition closed in September 2024, the narrative was straightforward. Hawaiian would gain financial stability. Alaska would impose what it described early as “discipline” across routes and costs. Travelers were told they would benefit from broader connectivity, stronger loyalty alignment, and long-term fleet investments that Hawaiian could no longer fund independently.

Eighteen months later, the plaintiffs argue that the outcome has not matched the pitch. They cite reduced nonstop options on some Hawaii mainland routes, redeye-heavy return schedules that many readers openly dislike, and loyalty program changes that longtime Hawaiian flyers say diminished redemption value. They frame these not as routine airline integration but as signs that competitive pressure has weakened in our island state, where airlift determines price and critical access for both visitors and residents.

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What is different about this filing compared with earlier debates is that it relies on developments that have already occurred rather than on predictions about what might happen later.

The HA call sign has already been retired. Boston to Honolulu was cut before competitors signaled renewed service. Austin’s nonstop service ended. Multiple mainland departures shifted into overnight red-eyes. And next, the single reservation system transition is targeted for April 2026, a process already well underway.

Atmos replaced both Hawaiian Miles and Alaska’s legacy loyalty programs, and readers immediately reported higher award pricing, fewer cheap seats, no mileage upgrades, and confusion around status alignment and family accounts. Each of those events can be described as aspects of integration mechanics, but together they form the factual record that the plaintiffs are now asking a judge to examine in Yoshimoto v. Alaska Airlines.

The 40% capacity argument.

One of the more interesting claims tied to the court filing is that Alaska now controls more than 40% of Hawaii mainland U.S. capacity. That figure strikes at the core of the entire issue. That percentage does not automatically mean monopoly under antitrust law, but it does raise questions about concentration in a state that depends exclusively on air access for its only industry and its residents.

Hawaii is not a region where travelers have options. Every visitor, every neighbor island resident, and every business traveler depends on our limited air transportation. The plaintiffs contend that consolidation at that scale reduces competitive pressure and gives the dominant carrier far more leverage over pricing and scheduling decisions. Alaska says that competition remains robust from Delta, United, Southwest, and others, and that share shifts seasonally and by route.

Competitors reacted quickly.

While Alaska integrated Hawaiian’s network under its publicly stated discipline strategy, Delta announced its largest Hawaii winter schedule ever, beginning in December 2026. Delta’s Boston to Honolulu is slated to return, Minneapolis to Maui launches, and Detroit and JFK to Honolulu move to daily service. Atlanta also gains additional frequency. Widebodies are appearing where narrowbodies once operated, signaling Delta’s push into higher capacity and premium cabin layouts.

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Those moves complicate the monopoly narrative. If Delta is expanding aggressively, one argument is that competition remains active and responsive. At the same time, Delta filling routes Alaska trimmed may reinforce the idea that structural changes created openings competitors believe are profitable, and that markets respond when gaps appear.

What changed since October.

In October, we examined whether the case would survive dismissal and whether passengers could refile. That moment felt more procedural than what’s afoot now. It did not alter flights, fares, or loyalty programs.

This filing is different because it is tied to post-merger developments and seeks emergency relief. The plaintiffs are asking the court to prevent further integration while the merits are evaluated, arguing that each added step toward full consolidation this spring makes reversal less feasible as systems merge, crew scheduling aligns, fleet plans shift, and branding converges.

Airline mergers are designed to become embedded quickly, and once those pieces are fully intertwined, unwinding them becomes exponentially more difficult, which is why the plaintiffs are pressing forward now rather than waiting any longer.

The DOT conditions and the defense.

When the purchase of Hawaiian closed, the Department of Transportation imposed conditions that run for six years. Those conditions addressed maintaining capacity on overlapping routes, preserving certain interline agreements, protecting aspects of loyalty commitments, and safeguarding interisland service levels.

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Alaska will point to those commitments as evidence that consumer protections were built into the core approval. The plaintiffs, however, are essentially claiming that those conditions are either insufficient or that subsequent real-world changes undermine the spirit of what travelers were told would remain. That tension between formal commitments and actual experience is at the core of this dispute.

Hawaiian had not produced consistent profits for years.

That is the actual financial situation, without sentiment. Alaska did not spend $1.9 billion to preserve Hawaii nostalgia. It purchased aircraft, an international and trans-Pacific network reach, and a platform it thinks can return to profitability under tighter cost control.

What this means for travelers today.

Nothing about your Hawaiian Airlines ticket changes because of this filing. Flights remain scheduled. Atmos remains the reward program. Integration continues unless a judge intervenes.

However, Alaska now faces a renewed court challenge that points to concrete post-merger developments rather than speculative harm. That scrutiny alone can bring things to light and influence how aggressively future route decisions and loyalty adjustments occur.

Hawaiian Airlines’ travelers have been vocal since the start about pricing, redeyes, lost nonstops, and loyalty devaluation. Others have said very clearly that without Alaska, Hawaiian might not exist in any form at all. Both perspectives exist as background while a federal judge evaluates whether the integration should be impacted.

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You tell us: Eighteen months after Alaska took over Hawaiian, are your Hawaii flights better or worse than before, and what changed first for you: price, schedule, routes, interisland flights, or loyalty programs?

Lead Photo Credit: © Beat of Hawaii at SALT At Our Kaka’ako in Honolulu.

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Lawsuit claims Hawaiian-Alaska Airlines merger creates monopoly on Hawaii flights

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Lawsuit claims Hawaiian-Alaska Airlines merger creates monopoly on Hawaii flights


HONOLULU (HawaiiNewsNow) – An effort to break up the Hawaiian and Alaska Airlines merger is heading back to court.

Passengers have filed an appeal seeking a restraining order that would preserve Hawaiian as a standalone airline.

The federal government approved the deal in 2024 as long as Alaska maintained certain routes and improved customer service.

However, plaintiffs say the merger is monopolizing the market, and cite a drop in flight options and a rise in prices.

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According to court documents filed this week, Alaska now operates more than 40% of Hawaii’s continental U.S. routes.

Hawaii News Now has reached out to Alaska Airlines and is awaiting a response.

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