Hawaii Joins Bali, New Zealand, Venice, Barcelona, Amsterdam in Introducing New Taxes and How it Affects Tourism Industry, New Update
By Tuhin Sarkar
Hawaii joins Bali, New Zealand, Venice, Barcelona, and Amsterdam in introducing new taxes, and how it affects the tourism industry is now at the centre of global debate. Around the world, destinations are searching for ways to balance booming visitor demand with the rising costs of protecting culture, nature, and local life. Hawaii joins Bali by preparing its first ever statewide green fee, while New Zealand has already raised its international visitor levy to record levels. At the same time, Venice is expanding its day-tripper entry tax, Barcelona is delaying but still increasing its hotel surcharges, and Amsterdam is keeping its position as Europe’s highest-taxed tourist city.
Hawaii is now added Bali, New Zealand, Venice, Barcelona, and Amsterdam in introducing new taxes because leaders believe that sustainable growth needs more than just visitor arrivals. The tourism industry benefits from travellers, but communities often bear the strain of waste, water use, and housing pressure. By adding targeted taxes, these cities and countries aim to ensure that travellers help pay for the places they enjoy.
Hawaii unites with Bali, New Zealand, Venice, Barcelona, and Amsterdam in introducing new taxes at a time when global tourism is rising sharply in 2025. Early data shows arrivals are still strong, even in destinations with higher levies. This suggests that carefully designed fees do not stop travel, but instead strengthen local resilience. The new update proves that the tourism industry is learning how to grow responsibly while protecting its most valuable assets.
Tourism is one of the world’s most powerful industries. It creates millions of jobs, supports local culture, and brings wealth to entire nations. But it also has a cost. Visitors use water, energy, and roads. They add to waste, crowding, and sometimes damage fragile natural areas.
To balance these costs, governments are turning to “green taxes.” These are small fees charged to tourists, often added to hotel stays, flights, or entry tickets. The idea is that every traveller should share in the responsibility of keeping destinations safe and clean.
In 2025, more places than ever are introducing, raising, or reforming these levies. Some are tropical islands protecting coral reefs. Others are historic cities managing crowds. What they all share is the belief that tourism must support long-term sustainability.
Hawaii: Preparing for a Groundbreaking Green Fee
Hawaiʻi is leading the United States with a bold step. In May 2025, lawmakers approved a law called Act 96. It will add a 0.75% surcharge on the state’s hotel tax, with money going into a new Environmental Legacy Fund.
The plan is not just about raising money. It is about building resilience against rising seas, wildfires, and tourism pressure. Officials expect about US$100 million every year to flow into projects such as trail repair, beach protection, and climate action.
The fee begins in January 2026, so visitors in 2025 are not paying it yet. Still, it shows how seriously Hawaii is preparing for the future. While visitor arrivals in July 2025 were down slightly compared with last year, this decline is linked to airline capacity and not to the tax. The state has made it clear that protecting its natural beauty is now a policy priority, not just a slogan.
Bali: Turning Tourist Crowds into Cultural Support
Bali introduced its 150,000 rupiah (about US$9) levy in February 2024. By the middle of 2025, the province had already collected over 168 billion rupiah. Authorities believe they can reach nearly one trillion rupiah by the end of the year if all tourists pay.
The money goes towards maintaining temples, improving beaches, and protecting the island’s fragile environment. The fee is a way to ask visitors to give back to the culture that makes Bali famous.
And importantly, the tax has not stopped people from coming. In June 2025, more than 637,000 international visitors arrived, and overall arrivals from January to May grew 13.6% compared with 2024. For Bali, the challenge is not attracting tourists but making sure tourism does not overwhelm the island. The levy is a step in that direction.
Why Hawaii Decided on a Green Tourism Tax
Hawaii is known across the world for its beaches, volcanoes, and natural beauty. But it also faces rising seas, stronger storms, and huge visitor numbers. Each year, millions of people visit the islands, and this puts pressure on local land, water, and communities.
In May 2025, Hawaii became the first state in the United States to pass a new kind of tax called a Green Fee. This law, known as Act 96, will add 0.75 percentage points to the state’s existing hotel tax. It will also extend that tax to cruise ship passengers. The money will go into a new Environmental Legacy Fund.
The aim is not to block visitors. It is to make sure travellers help pay to protect the very places they come to enjoy.
What the Tax Will Do from 2026
The tax starts on 1 January 2026. For a visitor, it means only a small change. On a hotel room that costs US$400 per night, the extra charge will be about US$3 per night.
Cruise passengers will also pay. The state tax will apply to the part of their ticket cost that covers time spent in Hawaii’s waters and ports. This part is still being debated in court because the cruise industry says it should not be taxed in that way.
Officials expect the tax will raise about US$100 million each year. The money will go to protect beaches, repair trails, reduce wildfire risks, and prepare for climate change.
Who Will Decide How the Money Is Spent
Hawaii has already set up a Green Fee Advisory Council. This group of experts and community leaders was announced in August 2025. Their job is to guide where the money goes.
The council will listen to the public, review projects, and make sure funds are spent wisely. By showing exactly how the money is used, the state hopes to win the trust of both locals and visitors.
Island by Island Performance
The July 2025 figures also show different trends on each island.
Maui is still recovering from the 2023 wildfires. Its visitor numbers in July 2025 were almost the same as last year, down only 0.3%, while spending was slightly up.
Oʻahu saw a bigger drop, with arrivals down 6.3%. Still, spending levels stayed above what they were before the pandemic.
Kauaʻi grew, with arrivals up 5.6% compared with July 2024.
This shows that the health of Hawaii’s tourism industry depends on many factors, from natural disasters to airline schedules. The new tax is only one small part of the bigger picture.
Why the Tax Matters for the United States
Hawaii’s Green Fee is important not only for the islands but also for the whole country. It is the first time any US state has linked a tourism tax directly to climate resilience and environmental protection.
Other states are watching closely. Coastal states that also face climate risks may copy Hawaii’s model. For example, California and Florida both have beaches and resorts under pressure from storms and sea level rise. They could consider similar fees to fund resilience projects.
If Hawaii’s plan works well, it could create a template for a new generation of sustainable tourism policies in the United States.
The Cruise Industry Challenge
One part of the law is already facing a fight. The Cruise Lines International Association (CLIA) filed a lawsuit in August 2025. It argues that Hawaii cannot apply its hotel tax to cruise tickets because this conflicts with federal maritime law.
This case will be important. If the court rules against the state, it may weaken Hawaii’s ability to tax cruises. If the state wins, it could encourage other coastal regions to follow.
How the Industry Reacted
Hotels and tourism operators in Hawaii have had mixed reactions. Some worry that higher taxes might make trips too expensive. But many also recognise that protecting beaches, trails, and parks is vital for long-term success.
The Governor praised the industry for working together on the plan. The idea is that a small fee now can avoid bigger costs later if beaches erode or wildfires damage attractions.
How Travellers Will Experience It in 2026
For most travellers, the change will be small. A family staying in a hotel will pay a little more each night. Cruise passengers may see the new tax included in their ticket price.
But the difference could be seen in other ways. If the fee funds beach repairs, trail improvements, and climate protection, visitors may notice better facilities and healthier ecosystems. The tax is not just about taking money. It is about giving something back to the land.
Lessons from Other Destinations
Hawaii is not alone in trying this idea. Around the world, many destinations already use green or tourist taxes.
Bali charges an entry levy of about US$9, which has not stopped arrivals from growing.
New Zealand raised its levy to NZ$100 in 2024, and visitor numbers still rose in 2025.
Iceland increased its lodging tax in 2025, and foreign arrivals also went up.
The Maldives doubled its Green Tax in 2025, and visitor arrivals still grew by over 11%.
These examples suggest that small, clearly explained fees do not scare away travellers. Instead, they provide money to protect what makes places special.
The Big Picture for 2025
The evidence so far is clear. Hawaii’s tourism in 2025 is healthy overall, with spending slightly up compared with 2024. The new Green Fee has not yet started, so it has had no effect on arrivals this year.
The real test will come in 2026, when the fee begins. Travellers will pay a little more, but they may also see better beaches, safer trails, and stronger communities. The key will be transparency. If people can see where the money goes, they are more likely to support the idea.
Why This Matters for the Future
Climate change is a growing threat. Rising seas and stronger storms could reshape Hawaii’s coastline. Wildfires have already damaged communities like Lahaina on Maui. Without action, tourism itself could suffer in the long run.
The Green Fee is a way to prepare. It ensures that visitors share in the responsibility of protecting Hawaii. It also sends a message to the world: tourism must be sustainable, or it risks destroying the very places people travel to see.
Tourism in 2025: What the Numbers Say
The Green Fee is not yet in place, so it has had no effect on 2025 visitor numbers. Still, it is useful to see how tourism is doing right now.
From January to July 2025, Hawaii welcomed 5.79 million visitors, which was 1.2% more than the same period in 2024. They spent about US$12.9 billion, which was 4.7% higher than last year.
In July 2025, there were 873,430 visitors, a drop of 4.4% compared with July 2024. Spending in July was US$1.95 billion, down 4.3%. But this was not because of the tax, since it has not started yet. The main reason was lower airline capacity, which meant fewer flights and fewer seats to the islands.
New Zealand: Raising the Bar Without Losing Visitors
New Zealand nearly tripled its International Visitor Conservation and Tourism Levy (IVL) in late 2024, taking it from NZ$35 to NZ$100. Many wondered if this would reduce visitor numbers.
The opposite happened. In the year ending June 2025, 3.38 million people arrived, an increase of 162,000 from the year before. Visitor spending also grew by more than 9%. The government has been clear: the levy is a small part of trip costs and makes little difference to travellers who come from far away.
Instead, it provides vital money for projects such as wildlife protection, walking tracks, and better visitor facilities. This is a clear example of how higher fees can work if the value is explained and the funds are used wisely.
Venice: Testing Fees to Reduce Overcrowding
Venice is one of the most visited cities in Europe, but it suffers from overcrowding. To address this, in 2024 the city tested a €5–€10 fee for day visitors. It raised about €2.4 million, but visitor numbers stayed the same.
In 2025, Venice increased the fee for last-minute visitors. The experiment is still in progress, and so far it shows that small fees may raise money but do not always control crowds. The city will need to decide whether to raise fees further or combine them with stricter entry rules.
Venice’s case is important because it shows the limits of taxation alone. For historic sites under pressure, money is not enough; sometimes harder choices must be made about visitor numbers.
Barcelona and Catalonia: Balancing Tourists and Residents
In Barcelona, tourism brings wealth but also strains housing and services. The city already charges a tourist stay tax plus a local surcharge. A rise planned for early 2025 was delayed until October, as officials wanted more time to connect the revenue directly to housing and local projects.
Despite the debate, Catalonia remains one of Spain’s most popular destinations. Spain recorded 44.5 million foreign visitors in the first half of 2025, with Barcelona and Catalonia taking the lead. The lesson here is that even when taxes rise, demand stays high if the city remains attractive. The bigger challenge is making sure residents feel the benefits.
Amsterdam: High Taxes, High Demand
Amsterdam has the highest hotel tax in Europe at 12.5% of room rates. Some feared it would make the city too expensive. But in 2025, hotels are still full. In April, occupancy was 85%, with average nightly prices above €210.
This shows that strong destinations can carry higher fees. For Amsterdam, the tax revenue supports city services, while the higher costs may also encourage longer and more thoughtful stays.
Greece: Funding Resilience in a Climate-Hit Nation
Greece replaced its hotel tax with a Climate Crisis Resilience Fee in 2024. The aim is clear: to fund recovery from fires, floods, and extreme heat.
Tourism has not suffered. In the first half of 2025, arrivals from the United States alone rose 20%, with visitors spending over €1,000 each on average. Greece proves that when a destination is strong, visitors accept fees as part of the package.
Iceland: Higher Fees, Higher Numbers
Iceland raised its lodging tax in January 2025 to ISK 800 per night for hotels and ISK 400 for campsites or cruises. Despite this, tourism continues to grow. In July 2025, more than 301,000 foreign travellers departed through Keflavík airport, up from 276,000 the year before. Hotel nights also rose by 9%.
For Iceland, the challenge is not numbers but infrastructure. The fee provides funding for roads, waste management, and nature protection in a country where tourism has boomed rapidly.
Maldives: Doubling the Green Tax
The Maldives doubled its Green Tax in January 2025 to US$12 per person per night for resorts and US$6 for guesthouses.
Critics feared that the rise would hurt demand. Instead, it boosted revenue. In the first quarter of 2025 alone, the government collected MVR 528 million. Tourist numbers also grew. By August, about 1.31 million people had visited, an increase of more than 11% from 2024.
The Maldives shows how eco taxes can succeed in high-end markets. Travellers coming for luxury and natural beauty are willing to pay more if they know the money helps reefs and communities.
Seychelles: A Levy that Matches Growth
Seychelles added a Tourism Environmental Sustainability Levy in August 2023. The amount depends on hotel size, ranging from SCR 25 to SCR 100 per night.
By August 2025, arrivals reached 248,977, a 10% increase from last year. The tax supports local environmental work, and the steady growth shows that visitors accept the extra cost for the chance to experience the islands.
Bhutan: The High-Value Model
Bhutan charges one of the world’s highest fees, the Sustainable Development Fee of US$100 per night. This is a reduced rate from the original US$200, extended until 2027.
Despite the high cost, demand is rising. In the first seven months of 2025, over 105,000 tourists arrived, up nearly 35% from 2024. Bhutan’s model is clear: fewer tourists, higher spending, and protection of culture and environment. It is proof that not all growth must come from big numbers.
Galápagos Islands: Protecting a Fragile Treasure
The Galápagos Islands doubled their entry fee in August 2024 to US$200 for adults. This money goes directly to conservation in one of the most sensitive ecosystems on Earth.
Tourist interest remains strong in 2025. For many travellers, the once-in-a-lifetime chance to see the islands justifies the higher price. This shows that in special places, people will pay more if they know the money protects the environment.
Palau: Building Conservation into Airfare
Palau includes a US$100 Pristine Paradise Environmental Fee in every international air ticket. This avoids the problem of collection at hotels or borders.
By mid-2025, arrivals had grown by 21% compared with the year before. The system is simple and effective: tourists pay without hassle, and the funds go straight into marine conservation.
Malta and Bonaire: Small Fees, Big Impact
Malta charges a small €0.50 per person per night, capped at €5. In the first half of 2025, arrivals rose 13.5% to 1.8 million.
Bonaire requires visitors to pay a US$40 annual nature fee, used for its marine and national parks. In July 2025, stayover arrivals rose by more than 16%.
Both cases show that even small levies can add up when visitor numbers are large, creating reliable funding for conservation.
What 2025 Teaches Us About Green Taxes
Looking across the world, a clear pattern appears. Green taxes do not stop people from travelling. Whether in Bali, Iceland, or the Maldives, visitor numbers keep rising even after fees go up.
The key lies in trust and transparency. Travellers accept fees when they see that the money helps protect the places they visit. Problems arise only when there is poor enforcement or when locals feel no benefit. Venice’s experience shows that raising money is easy, but solving crowding is harder.
In 2025, green taxes have become normal in global tourism. They are not just about raising money. They are about responsibility, fairness, and protecting beauty for future generations.
