Canadians must now pay more to vacation in Hawaii
Tourists from Canada who are heading to Hawaii for some much-needed sun now have to pay just a little more after a new cost was added for visitors.
Anyone vacationing in Hawaii, including visitors from Canada, must pay the “green fee,” a tax increase which kicked in on Jan. 1. The decision was announced in 2025 and saw Hawaii’s transient accommodations tax (TAT) go up by 0.75 per cent from 10.25 to 11 per cent.
Travel + Leisure reports that the increase will apply across the state and that each county can impose an additional three per cent tax.
How will visitors pay the green fee?
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The green fee will be automatically added to the tax when booking hotels or short-term rentals in Hawaii.
The tax increase is modest when compared to the initial 2021 proposal to charge tourists a per-person $40 visitor fee. Although a 0.75 per cent increase doesn’t sound like a lot, it’s expected to generate US$100 million annually for the state. Money raised by the tax will go towards protecting and preserving Hawaii’s natural resources.
“Visitors who benefit from our island’s resources have a shared responsibility to help preserve them,” said Hawaii Governor Josh Green. “The Green Fee ensures that the resources needed to protect Hawaiʻi are available for future generations.”
The revenue will also go towards helping the state better respond to disasters, such as the devastating August 2023 wildfires in Maui.
Hawaii had also planned to apply the tax to cruise ships, but it’s currently on hold due to a lawsuit filed by the Cruise Lines International Association (CLIA).
Impact of Canadian boycott
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Hawaii has long been a popular destination for Canadians, but it hasn’t been spared from the impact of cross-border tensions. More Canadians are skipping the U.S. in favour of domestic travel or other international destinations.
According to data from the Hawaii Tourism Authority, from January to November 2025, the state welcomed 347,712 visitors from Canada, a drop of 11.4 per cent compared to the first 11 months of 2024. And although each Canadian tourist spent 2.4 per cent more in 2025, overall, revenue from Canadian travellers fell by eight per cent during the first 11 months of 2025.
Hawaii won’t be the first popular tourist spot to increase taxes on hotels and temporary accommodations this year. Starting March 1, Kyoto is set to increase its accommodation tax, with the amount depending on the nightly rate.
Baja California Sur in Mexico has also increased the mandatory Embrace It Tax, which tourists must pay before entering the state.