Hawaii's Groundbreaking Climate Tax on Cruise Passengers Sets Sail

Hawaii plans to impose a new tourist tax on cruise ship passengers to fund climate change initiatives. The tax, set to start in 2026, aims to raise $100 million annually. Despite legal challenges, authorities affirm the tax is crucial to address climate threats, with an appeal currently underway.

In a landmark decision, a federal judge has cleared Hawaii's implementation of a new tourist tax on cruise ship passengers. This initiative, aimed at tackling climate change, will commence in early 2026.

U.S. District Judge Jill A. Otake dismissed objections that sought to prevent officials from enforcing this unprecedented law. Hawaii's Governor, Josh Green, had earlier signed the legislation to combat environmental challenges like eroding shorelines and wildfires by generating an estimated $100 million annually.

Although challenged by the Cruise Lines International Association and local businesses, the state insists the tax is essential. The U.S. government, meanwhile, has intervened, labeling the measure as a legal overreach, while an appeal remains under consideration.

(With inputs from agencies.)