Hawaii Joins Kyoto, Catalonia, Balearic Islands, Bali, Tokyo in Introducing Latest Tourism Tax Revolution to Curb Overtourism and Supercharging Economy, Jobs, Local Tourist Attractions Protection and Infrastructure

Published on December 27, 2025

By: Tuhin Sarkar

Hawaii now joins Kyoto, Catalonia, Balearic Islands, Bali, and Tokyo in introducing the latest tourism tax revolution to curb overtourism. This bold move is designed to supercharge the local economy, boost jobs, and enhance local tourist attractions protection.

With this new tourism tax, Hawaii aims to tackle overtourism while ensuring that its infrastructure gets the support it needs to thrive. As more destinations like Kyoto and Bali take similar actions, this shift promises a brighter, more sustainable future for tourism worldwide. This change will ensure that the benefits of tourism are shared responsibly.

Tourism is one of the world’s most powerful economic forces. From the golden beaches of Hawaii to the historical temples of Kyoto, countries are now grappling with an explosive rise in visitors. As beautiful as these destinations are, the toll on the environment, local infrastructure, and residents has become unsustainable.

Enter hotel taxes and green levies—strategic tools introduced by governments to curb overtourism, preserve natural wonders, and secure sustainable futures. This comprehensive look reveals the sweeping changes happening globally, from Hawaii’s green fee to Kyoto’s hotel tax revolution, all aimed at ensuring tourism doesn’t damage the very things that make it so appealing.

Hawaii’s Groundbreaking Green Fee: Leading the Charge for Sustainability in Tourism

Hawaii is making history as the first state in the U.S. to implement a green fee tax on hotel stays and cruise passengers. The new law, passed in May 2025, levies an 11% tax on gross cruise fares and hotel bookings. For cruise visitors, the tax is prorated, depending on the number of days ships dock in Hawaiian ports. This bold move is aimed at preserving Hawaii’s fragile ecosystems, including its coral reefs and endangered species. The funds raised will directly contribute to environmental conservation and help mitigate the impacts of climate change, which are increasingly threatening the islands’ natural beauty.

The 11% green fee tax is a clear sign that Hawaii understands the need to balance tourism with sustainability. With over 400,000 cruise passengers arriving each year, the Hawaiian government has seen an opportunity to ensure that the tourism industry contributes to the very environment that supports it. This move has been met with some resistance, particularly from the cruise industry, which filed a lawsuit arguing the tax violates the Constitution by taxing ships for entering a port. However, Hawaii’s Attorney General Anne Lopez is determined to defend the law, stating it’s crucial for the state’s long-term environmental protection.

By 2026, this green fee tax will be in full effect, sending a clear message to the world that sustainable tourism is the way forward. Hawaii’s decision is a critical step towards addressing overtourism and setting a precedent for other destinations. The tax will not only help fund vital conservation efforts but also serve as a model for other regions facing the same tourism challenges.

Hawaii’s Green Fee Tax: A Bold Step Towards Environmental Protection

In May 2025, Hawaii introduced a green fee tax targeting hotel stays, short-term rentals, and cruise ship visits. The law has generated considerable attention, not only because of its unique approach but also due to its potential impact on the tourism industry, one of the state’s most important economic drivers. Hawaii’s move aims to raise funds for vital environmental protection programs, from safeguarding native species to mitigating the impacts of climate change on its delicate ecosystems.

The green fee tax will primarily be used to support programs that address issues like coral reef preservation, invasive species management, and the restoration of Hawaii’s natural landscapes. The growing threat of global climate change, particularly rising sea levels, is a significant concern for the islands, which rely heavily on their natural beauty to attract tourists.

Cruise Passengers Face Additional Tax Burden Starting in 2026

For cruise passengers, the green fee tax will be set at 11% of the gross fares paid, starting in 2026. This tax will be prorated based on the number of days the cruise ship spends in Hawaii’s ports, meaning that passengers will pay according to their length of stay in the state. This move follows the state’s ongoing efforts to ensure that the tourism industry contributes more directly to the costs of maintaining Hawaii’s fragile environment, which is often heavily impacted by the influx of visitors.

The new tax will affect cruise lines operating in Hawaii, which are a key component of the state’s tourism industry. In 2023 alone, Hawaii saw over 400,000 cruise passengers arrive on its shores, contributing nearly $1 billion to the state’s economy. These numbers underscore the significance of the cruise sector, not only in terms of economic revenue but also in its environmental footprint.

Legal Challenge from Cruise Industry Associations

The introduction of the green fee tax has sparked controversy, particularly among cruise industry stakeholders. The Cruise Lines International Association (CLIA) filed a lawsuit in an attempt to block the implementation of the tax, arguing that it would violate the U.S. Constitution. CLIA claims that taxing cruise ships for entering a Hawaiian port constitutes an unfair levy and is unconstitutional. The lawsuit, filed alongside a Honolulu-based cruise-aligned company, highlights the tension between Hawaii’s environmental goals and the interests of the cruise industry.

Jim McCarthy, a spokesperson for CLIA, defended the industry’s stance, stating, “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.” The association has expressed concerns that the green fee tax will place an undue financial burden on the cruise industry and, by extension, the local communities that depend on it.

However, Hawaii’s Attorney General, Anne Lopez, has vowed to continue defending the law, which she believes is essential for the long-term protection of the state’s environment. “This law is critical in helping protect Hawaii’s natural resources, which are at risk from the effects of climate change and excessive tourism. We are committed to ensuring that the green fee tax is implemented as planned,” she stated.

Economic Impact of the Green Fee Tax on Hawaii’s Tourism Industry

Hawaii’s tourism sector has long been a major driver of the state’s economy, providing thousands of jobs and generating billions in revenue each year. The introduction of the green fee tax is a significant move to ensure that the tourism industry helps shoulder the financial burden of preserving Hawaii’s unique natural beauty. With tourism contributing to environmental degradation, particularly from mass tourism and cruise ships, the new tax is seen as a way to balance economic growth with sustainability.

While the tax is expected to raise millions of dollars in revenue, it also carries the potential to affect the cost of visiting Hawaii. The additional tax on cruise fares could make the state less attractive to some tourists, especially those on tight budgets or looking for affordable vacation options. However, proponents argue that the long-term benefits of environmental protection far outweigh the immediate financial concerns.

Moreover, the green fee tax is likely to influence how tourists engage with Hawaii’s environment. By introducing this tax, the state sends a clear message that it values its natural resources and expects visitors to contribute to their preservation. This could encourage more eco-conscious behavior among travelers, from reducing waste to supporting local conservation efforts.

The Future of Hawaii’s Green Fee Tax and Its Legal Implications

With the legal challenge to the green fee tax still ongoing, the future of the law remains uncertain. The cruise industry’s opposition could lead to further delays or changes to the legislation, but Hawaii’s Attorney General remains confident that the law will ultimately stand. The legal battle could have broader implications for how states across the U.S. address tourism’s environmental impact. If Hawaii’s green fee tax is upheld, it could pave the way for other states to adopt similar measures, marking a significant shift towards more sustainable tourism practices.

For now, the green fee tax stands as a testament to Hawaii’s commitment to environmental stewardship. The law represents a bold step forward in balancing economic growth with ecological responsibility, and it will likely set a precedent for other states to follow. As Hawaii continues to defend the law in court, the outcome of this case could have lasting effects on the future of tourism and environmental protection in the U.S.

Kyoto’s Bold Hotel Tax: The City’s Answer to Overtourism and Sustainability

Kyoto, Japan, one of the most iconic cities in the world, has introduced the highest hotel tax in the country to combat overtourism. This tax, set to be implemented in March 2026, is designed to raise funds for infrastructure improvements and environmental management. The new system uses a tiered approach, where the tax rate increases with the price of accommodation. Luxury hotels can charge up to ¥10,000 per night (around US$68), while mid-range hotels are also expected to see higher rates. This move is a direct response to the growing concerns about crowding at Kyoto’s heritage sites and its effect on local residents and the environment.

Kyoto is facing the challenge of balancing its rich cultural heritage with the influx of tourists. With millions visiting annually, the city’s infrastructure has been under intense pressure. The new tax will help Kyoto improve transportation, waste management, and the preservation of its cultural landmarks. By targeting the luxury travel sector, Kyoto is making sure that tourists who benefit the most from its resources contribute to the city’s maintenance. This strategic move is a prime example of how overtourism is being addressed globally.

Norway’s National Hotel Tax: Addressing Overtourism with a Sustainable Focus

Norway has introduced a national tourist tax framework, giving municipalities the power to implement taxes on overnight stays. This measure, effective from 2026, is designed to generate revenue for local services and tourism infrastructure. The tax is expected to apply to destinations with high tourist volumes, such as Lofoten and Tromsø. The 3% hotel tax is aimed at encouraging sustainable tourism, ensuring that both tourists and locals benefit from a thriving tourism industry without compromising the environment.

This move is part of Norway’s broader strategy to encourage eco-friendly travel and responsible tourism. The tax will also help local governments improve infrastructure, reduce carbon footprints, and ensure that visitors can continue to enjoy the country’s pristine natural landscapes for years to come.

Spain’s Green Tax: Catalonia Leads the Way

In Spain, Catalonia has introduced a green tourism tax that targets hotel guests and cruise passengers. The tax is designed to combat the effects of overtourism and protect local heritage sites. With record visitor numbers, cities like Barcelona are struggling to manage the environmental and social impacts of mass tourism. The new green tax will raise funds for infrastructure improvements and environmental sustainability initiatives.

Catalonia is setting a precedent by introducing taxes that will benefit local residents and the environment, ensuring that tourism contributes to the future of these beautiful destinations. The tax is expected to apply to luxury accommodations and cruise ships, where the financial burden can be spread more easily. This tax plan is an important step towards managing tourism in one of Europe’s most popular destinations.

Scotland’s Visitor Levy: Supporting Local Infrastructure and Tourism Management

In Scotland, the Visitor Levy is set to revolutionize how the country manages tourism. Starting in 2026, local authorities in cities like Edinburgh and Glasgow will introduce a tourism tax on overnight stays. The levy will be set at 5% in Edinburgh, with other cities expected to follow suit. The revenue generated will be reinvested in local infrastructure, tourism services, and initiatives to tackle overtourism.

Scotland is increasingly grappling with the pressures of high visitor numbers, especially during peak tourist seasons. The Visitor Levy will be a tool to ensure that the tourism sector remains sustainable while maintaining the local quality of life. The tax is designed to promote responsible tourism and provide a better experience for both visitors and residents.

Venice’s Entrance Fees: Managing Overtourism in the Heart of Italy

In Venice, entry fees for tourists are being introduced as part of an ongoing effort to combat overtourism. Starting in 2026, visitors will be required to pay a fee to enter the city, which has been overwhelmed by cruise ships and day-trippers. The funds raised will go towards preserving the city’s architecture, supporting local communities, and protecting its fragile ecosystem.

Venice is facing an existential crisis due to the impacts of mass tourism. The entry fee is a bold step towards reducing the number of visitors and ensuring that the city can continue to thrive without compromising its cultural and historical significance.

Bali’s Tourist Levy: Protecting Culture and Nature

In Bali, a tourist levy has been introduced to manage the growing number of international visitors. Starting from February 2024, the levy will cost IDR 150,000 (~US$10) per person. This tax is aimed at protecting Bali’s culture, promoting sustainable practices, and preserving the island’s natural resources. The funds raised will support cultural preservation and environmental conservation projects.

Bali is one of the world’s most visited destinations, and the tourist levy is a step towards mitigating the negative impacts of mass tourism, such as overcrowding and environmental degradation. By introducing this levy, Bali is not only taking a stand against overtourism but also ensuring that the island remains a sustainable and vibrant destination for generations to come.

Countries around the world, from Hawaii to Venice, are taking bold steps to combat overtourism and preserve their natural and cultural heritage through hotel taxes and green levies. By taxing tourists, these destinations are ensuring that the economic benefits of tourism are reinvested in their communities and environments. As the global tourism industry faces mounting pressure from climate change and over-crowding, these taxes represent an essential shift toward sustainability. They are not just a way to mitigate the negative effects of mass tourism, but also an investment in the future of the places we love to visit.