Hawaii Introduces 11% Cruise Passenger Tax to Support Environmental Initiatives

Effective January 1, 2026, Hawaii will introduce an 11% tax on cruise ship passengers as part of its Transient Accommodations Tax (TAT), a move that aims to enhance funding for environmental initiatives. This tax, previously only applicable to hotel accommodations, will be prorated based on the duration cruise ships are docked in Hawaiian ports. For example, passengers on a 14-night voyage who spend three nights in Hawaii will pay the tax solely for those nights.

This new tax is expected to generate almost $100 million annually, with proceeds allocated solely for projects related to environmental protection and climate resilience. These funds will support initiatives such as beach restoration, strengthening infrastructure against storms, and managing invasive species that contribute to wildfire hazards.

Reactions from the cruise industry to this legislation have been mixed. Norwegian Cruise Line (NCL), which operates the Pride of America—currently the only ship offering weekly, closed-loop 7-night cruises around the Hawaiian Islands—has voiced strong opposition to the tax. NCL has raised concerns about the financial implications and has suggested the possibility of legal action or pulling its year-round operations from the state in response to the new tax.

Governor Josh Green supports this initiative, which would make Hawaii the first state in the U.S. to directly use tourism-generated tax revenues to fund environmental and climate resilience efforts.

Set sail on a voyage of discovery with CruiseShip.net – your ultimate destination for all things cruising! Explore the latest news, insightful reviews, and thrilling cruising adventures from around the globe. Whether you’re a seasoned cruiser or a first-time traveler, CruiseShip.net is your go-to source for expert advice, insider tips, and inspiring stories to fuel your wanderlust. Embark on a journey like no other with CruiseShip.net – where every wave brings new excitement and endless possibilities on the high seas.