Hawaii officials are moving forward with a tourist tax set to combat over-tourism and preserve its fragile environment. In addition to last year’s 9.5 million visitors, the state is still reeling from the catastrophic flames that destroyed Lahaina, Maui, killing 100 and causing $6 billion in damage. The tax aims to generate revenue to protect the state’s natural resources and mitigate the impacts of climate change.

Here’s everything you need to know about this significant development.

What’s the Bill?

Hearings on Governor Josh Green’s plan to impose a $25 climate impact fee on visitors to the Aloha State took place over the last two weeks in two separate Hawaii House committees. While the proposal faced opposition from some legislators concerned that it may violate US constitutional protections for free travel, the bill received overwhelming approval from the two House committees.

The modest fee is expected to raise over $68 million annually. The primary goal of this proposed fee is to provide the necessary resources to protect Hawaii’s environment and increase awareness of the impacts of climate change. The state aims to address the strain on its natural resources caused by the influx of tourists and the devastating wildfires that resulted in loss of life and property damage.

According to Governor Green, the charge is a small price in exchange for protecting paradise, and tourists must do their part to protect Hawaii’s natural riches. The revenue generated from the fee will aid in establishing a state fire marshal and bolster disaster prevention initiatives.

Alternatives and Similar Programs

In addition to the tourist tax, Hawaii is considering alternatives, such as increasing the state hotel tax, which is among the highest in the country. State lawmakers are also advocating year-long permits or passes to major parks and trails, a first-of-its-kind initiative for any US state. Hawaii’s new tourist tax follows in the footsteps of other tourist hot spots, including Venice, Italy, and Iceland, which have imposed fees on visitors to support climate and sustainability goals.