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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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Famed Beach Is Disappearing. Should Hawaii Save It?

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Famed Beach Is Disappearing. Should Hawaii Save It?



Hawaii’s Kaanapali Beach is a famed tourist destination with a problem: The beach itself is gradually disappearing. Now a major debate is underway in Maui about how, or whether, to save it, reports SFGate. Photos from the late 1980s show a much wider beach, one that has narrowed to a sliver in some places. In short, it “still looks spectacular, but there is less of it,” is how the Beat of Hawaii puts it. And it’s not always so spectacular: “Exposed rock and drainage pipes are sometimes seen jutting out from the sand, while orange plastic fencing blocks access to erosion-impacted areas,” per SFGATE. A long-planned state-backed effort to pump offshore sand back onto the beach cleared environmental review, but the state’s land board pulled its funding in 2023 after residents blasted the price tag and raised alarms over marine impacts.


Now hotel and condo owners are reviving the project themselves. Through a new nonprofit, they’re pitching a “nature-based” plan to rebuild the beach to roughly its 1988 width, restore dunes, and plant natives, with applications headed to the state in coming months. Supporters frame it as a way to keep Kaanapali usable and accessible. Opponents like community advocate Kai Nishiki say the real fix is “managed retreat”—moving buildings inland and letting the shoreline migrate naturally. In her view, the real issue is that hotels and condos were built decades ago on dunes too close to the shorefront, without much thought to the long-term ecological impact.

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“The problem is the structures, not the beach,” Nishiki tells SFGATE. “The beach is completely fine and healthy if we would just support the coastal ecosystem and support the landward migration of our beaches.” Beachfront owners disagree, and their renewed proposal will trigger another state review and public hearing. In the meantime, “Kaanapali remains a quintessentially beautiful and worthwhile destination, but visitors arriving this year should come with adjusted expectations,” per the Beat of Hawaii.





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University of Hawaii study finds San Andreas Fault stress at 1,000-year high | Honolulu Star-Advertiser

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University of Hawaii study finds San Andreas Fault stress at 1,000-year high | Honolulu Star-Advertiser


LOS ANGELES >> Stress on the San Andreas Fault system has reached a 1,000-year high, according to new research from the University of Hawaii.

Higher stress on a fault means the pressure that causes earthquakes is building.

“Our results show that stress levels on multiple fault segments are now at or above the highest values seen in the past millennium and that the region may be capable of a large through-going rupture involving both fault systems,” said lead author Liliane Burkhard, research affiliate in the Hawai‘i Institute of Geophysics and Planetology at the UH-Manoa School of Ocean and Earth Science and Technology and a scientist at the University of Bern, Switzerland.

“We also found that Cajon Pass may act as an ‘earthquake gate:’ sometimes blocking large ruptures from crossing between the faults, and sometimes allowing them to pass through and involve both systems in a single event,” Burkhard said in a UH news release.

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Multi-fault ruptures, where earthquakes continue from one fault to another, have occurred in multiple recent earthquakes, including the 2011 Tohoku, Japan, earthquake and became a part of the U.S. Geological Survey’s earthquake forecasting model in 2015.

This type of quake would be possible if the Cajon Pass, which is between the San Bernardino and San Gabriel mountains in Southern California, allows an earthquake to pass through it, meaning rather than affecting the area along one fault line, a quake could continue along a second fault and affect a larger area.

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But Kate Scharer, a co-author of the study and a seismologist with the U.S. Geological Survey in Pasadena, said there’s no reason for California residents to be significantly more concerned than they were before hearing about the study.

While the stress has reached a milestone, the pressure was already high and the fault has been overdue for a large earthquake for some time, according to the study.

It has been over 100 years since a major tectonic rupture has affected the greater Los Angeles area, which means stress on the tectonic plates has been building, according to the study.

The 1857 Fort Tejon earthquake was the most recent “big one” to affect Southern California, while the San Jacinto Fault saw moderate earthquakes in 1918, 1968 and 1987, according to the study. A long period without seismic activity “raised concern that the next slip event in this region could be both large and complex,” the study says.

As more time passes, an earthquake becomes more likely because built-up energy needs to be released.

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“We know for the southern San Andreas and the San Jacinto fault that they were just a little bit over the average (time between earthquakes) from looking at the geologic record,” Scharer said.

Those two faults are at highest risk for an earthquake because they are the fastest moving, she said.

The study looked at a geologic record of earthquake activity across the past 1,000 years, giving a new perspective on the total stress the San Andreas and San Jacinto fault systems are under. Tectonic plates are always moving and accumulating stress, save for those few seconds where an earthquake is happening.

When an earthquake releases built-up stress from hundreds to thousands of years of an interseismic period, energy is felt in the form of an earthquake, Scharer said.

Earthquake forecast models from the U.S. Geological Survey are “a reminder that damaging earthquakes are inevitable for California,” and the new study highlights just how much stress the fault systems are under as Californians prepare for the “big one,” according to the USGS.

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The study’s importance is with the calculations of stress the researchers did. After a geologic record, which looks at prehistoric earthquakes and is assembled by digging trenches across faults and looking at layers that have been offset in the past, is created, the researchers were able to determine that the stress on the San Andreas fault is at a 1,000-year high.

The stress level could influence if the Cajon Pass facilitates an earthquake spreading from one fault to another, or if it stops an earthquake from doing so. When the stress levels on both faults are similar, both faults appear to rupture jointly, according to the study.

Using a physics-based computer model, the researchers found that that the stress that would normally be released in large earthquakes has continued to accumulate and is at unprecedented levels.

The Cajon Pass, the study suggests, could facilitate a joint rupture of both the San Andreas and San Jacinto faults simultaneously, which could be “significantly more damaging than a single-fault event,” affecting densely populated areas including Los Angeles, San Bernardino, Riverside and the Coachella Valley, according to the UH news release.

“This is not a prediction of when an earthquake will happen,” Burkhard said. “However, studies like this are important contributions to national and global earthquake hazard research in that we are using rigorous, quantitative science to better understand the risk facing millions of people. What we can say is that the system is critically stressed, and that physics-based models like this one give us a clearer picture of the range of scenarios we should be prepared for. That information matters for hazard assessments, infrastructure planning, and emergency preparedness.”

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Honolulu Star-Advertiser staff contributed to this report.




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Police recover 19 gaming machines, $7K in Kakaako gambling bust

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Police recover 19 gaming machines, K in Kakaako gambling bust


HONOLULU (HawaiiNewsNow) – The Honolulu Police Department shut down an illegal gambling operation in Kakaako.

On Thursday, officers with the Narcotics/Vice Gambling detail, along with the District 1 Crime Reduction Unit, Forfeiture Detail and Specialized Services Division, executed a search on a property on Kawaiahao Street.

HPD said they recovered 19 gaming machines and more than $7,000 in cash.

Police shut down the gambling operation in Kakaako Thursday.(Honolulu Police Department)

The department said they remain committed to addressing illegal gambling operations.

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“The June 25, 2026, operation is the 19th illegal gambling search warrant executed so far in 2026 and the third in the month of June,” said HPD Maj. Jerome Pacarro. “Enforcing the law against these illegal operations helps prevent related criminal activity from taking root and strengthens the safety of our communities.”

To report illegal gambling, call the Narcotics/Vice 24-hour hotline at (808) 723-3933 or use the online form here.

Copyright 2026 Hawaii News Now. All rights reserved.



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