Our community and the travel industry are in support of Gov. Josh Green’s efforts to prepare for the impacts of climate change on Hawaii’s natural resources. Recent disasters like the Maui and Los Angeles fires underscore the urgent need for continued preparation to address environmental and safety challenges. These efforts are vital for sustainability and the well-being of residents, and we recognize the importance of protecting Hawaii’s unique environment for future generations.
At the same time, we must ensure that the tourism industry, which is Hawaii’s largest employer, can recover and thrive. About 30% to 40% of graduating students are expected to find employment in tourism or its supporting sectors. Without a strong tourism sector, our communities and local economy will suffer, and young people may have fewer opportunities to stay in Hawaii.
Nearly 30 years ago, the transient accommodations tax (TAT) was implemented with the goal of generating marketing funds to promote Hawaii as a world-class destination. This investment helped drive growth, making Hawaii a premier travel destination and supporting local communities. Today, however, the TAT has ballooned to over $1 billion, but these funds are no longer directed toward tourism marketing but funded into the general fund.
To put it simply, marketing dollars for tourism in Hawaii are now at their lowest level in more than 20 years. While the COVID-19 pandemic and the devastating Maui wildfires have understandably caused setbacks, the fact remains that Hawaii is trailing its competitors in recovery and growth. This not only threatens the tourism industry itself but also jeopardizes the future of Hawaii’s economy, tax base and employment opportunities.
While we support efforts to address climate change, it is unreasonable to place the burden of tackling long-term challenges, like climate change or wildfires, on tourists.
Many repeat visitors have supported Hawaii for decades, and asking them to pay additional fees for environmental issues could alienate the very people who contribute to our economy.
Instead, we propose charging visitors for using Hawaii’s natural resources, such as through a user-friendly app for parking or trail access. This would provide a revenue stream while ensuring that our natural areas are properly managed and preserved. The funds generated could be reinvested into resource management, creating a sustainable model for the future.
We also urge the state to refrain from implementing any new “green” fees or increasing the TAT until the tourism industry is back on its feet. Hawaii’s tourism sector needs at least two more years of focused recovery before any additional burdens are placed on visitors. Patience and strategic investment in tourism infrastructure are key to Hawaii remaining a vibrant and sustainable destination for generations to come.
Keith Vieira is principal of KV & Associates, Hospitality Consulting.