Full Breakdown
Hawaii's Legislative Shift on Cruise Ship Fees and Climate Funding
2/25/2026, 7:09:25 AM
Legislative Changes and Financial Implications
Hawaii's state lawmakers are advancing legislation that would exempt cruise ships from the state's new green fee, replacing it with a per-passenger fee of approximately $10. This shift comes amid ongoing litigation between the cruise industry and the state regarding the green fee, which was designed to generate significant revenue for climate-related projects. If the cruise ships remain subject to the green fee, they are projected to contribute around $26 million in fiscal year 2027. In contrast, the proposed per-passenger fee would yield only about $10 million annually, significantly reducing the funds available for addressing issues such as overtourism and climate change.
Background on the Green Fee
The green fee was introduced as part of Hawaii's efforts to combat the impacts of climate change and natural disasters, with funds primarily sourced from hotel guests. The legislation aims to support various environmental projects, including habitat restoration and wildfire prevention. However, the proposed changes would limit the use of the new passenger fees to harbor improvements, raising concerns among environmental advocates about the adequacy of funding for broader climate initiatives.
Stakeholder Perspectives
Supporters of the legislative changes, including Norwegian Cruise Line Holdings, argue that the per-passenger fee would directly benefit harbor facilities and enhance the guest experience. Sandra Weir, the company's vice president for government relations, emphasized the importance of improving infrastructure for cruise visitors. Conversely, environmental groups, such as Care for ‘Aina, have expressed concerns that the new fee structure may undermine the original intent of the green fee, advocating for equitable contributions from cruise visitors comparable to other travelers.
Potential Uses of Passenger Fees
State officials have indicated that the revenue from the per-passenger fees could still be allocated to climate-related projects, such as the installation of shore power infrastructure, which would allow ships to connect to the electrical grid while docked. However, the estimated cost for such infrastructure at key ports, like Honolulu Harbor, is around $100 million. Additionally, the funds could be used to raise piers at ports that are projected to be affected by rising sea levels.
Criticism and Concerns
Rep. Adrian Tam, chair of the House Tourism Committee, acknowledged the significant reduction in funding that would result from the shift to a per-passenger fee, stating that losing green fee revenues is a "huge concern." Despite this, he noted the economic importance of the cruise industry to Hawaii. The bills are currently progressing through legislative committees, with further hearings yet to be scheduled.
Verbatim Quotes
- “The main point for this is to find a middle ground so that we avoid heavy litigation costs and a drawn-out process,” — Rep. Adrian Tam, Chair, House Tourism Committee
- “It is critical that cruise visitors contribute meaningfully and equitably,” — Care for ‘Aina Leadership Committee
- “Weir said the charges would roughly double the $41 in total fees per passenger the cruise ships already pay to visit the ports in Honolulu, Nawiliwili, Kahului and Hilo.” — Sandra Weir, Vice President, Norwegian Cruise Line Holdings
As Hawaii navigates this legislative change, the balance between economic interests and environmental responsibilities remains a central theme in the ongoing discussions surrounding cruise ship fees and climate funding.
