Hawaii Passes First-Ever Tax on Cruise Ships
Cruising to the Aloha State will soon become more expensive for travelers, whether they are just visiting the islands for a single night or may be island hopping on a longer sailing.
On Friday, May 2, 2025, lawmakers in the Hawaii State Legislature increased the transient accommodations tax (TAT), and for the first time, included cruise ship guests with new fees.
According to khon2, the new law will take effect beginning January 1, 2026 and includes an 11% tax on cruise fares, prorated for the days ships are docked in the state.
This means that for cruisers on a ship simply visiting the islands, say for three nights out of a 14-night sailing, the tax would be 11% of the fare just for those three nights, not on the entire two-week cruise.
Previously, there has been no such tax on any cruise visitors to Hawaii. In 2024, the state welcomed nearly one million cruise guests, many of whom would have enjoyed the state’s natural beauty and stunning landmarks.
The impetus behind taxing cruise guests is to ensure all visitors help with the state’s hefty conservation costs to protect that natural beauty. From the unique wildlife and the phenomenal coastal views to the tropical landscapes and the stunning beaches, Hawaii is an amazing cruise destination.
Having enjoyed the native banyan trees, climbed Diamond Head to admire the vistas around Honolulu, and spotted my first ever albatross at Kilauea Point National Wildlife Refuge when we visited Hawaii aboard Carnival Miracle, I’d happily pay the tax for all the beauty Hawaii offers.
Many other cruise destinations are passing taxes on cruise visitors. Those fees are often earmarked for infrastructure, such as port improvements, dredging work, and emergency services.
The new tax in Hawaii, however, is tied directly to conservation of the native ecosystems and native Hawaiian culture – exactly why visitors want to visit the 50th state.
“The more you cultivate good environmental policy … the more likely it is we’re going to have actually lifelong, committed travelers to Hawaii,” commented Josh Green, Governor of Hawaii.
In fact, many cruise shore excursions focus on nature, such as visiting the Kilauea Lava Fields or Volcanoes National Park in Hilo, the famous Fern Grotto on Kauai, or sea turtle snorkeling in Maui. Waterfall hikes, botanical gardens, whale watching, and more are also popular tour options.
Cruise guests can also easily explore Hawaiian culture with luaus, the Polynesian Cultural Center, or visiting Iolani Palace.
It is estimated that the new tax will generate nearly $100 annually, which will be used for such projects as beach replenishment, hurricane preparation, and removing invasive grasses, like those that contributed to the 2023 wildfires that destroyed Lahaina.
While the new tax has passed both houses of the Hawaiian legislature, it must still be signed into law by the governor.
Cruising to Hawaii
At this time, no cruise lines have confirmed any plans to adjust Hawaiian itineraries or ports of call.
Hawaii is difficult for cruises to reach – the islands are 2,600 miles from the nearest US homeports in California. Even more distant are Australian homeports, roughly 4,800 miles away.
Nevertheless, the tropical destination is a focus of some closed-loop cruises that depart either from California, Seattle, or Vancouver, depending on the cruise line.
Hawaii is also a frequent part of world cruises or transpacific sailings, such as ships repositioning from Australia or Asia to Alaska or the Caribbean.
Many cruise lines, including Celebrity Cruises, Princess Cruises, Norwegian Cruise Line, Oceania Cruises, Holland America Line, Carnival Cruise Line, Disney Cruise Line, Royal Caribbean, AIDA Cruises, Seabourn, and more offer Hawaiian itineraries.
Only Norwegian Cruise Line’s Pride of America sails the Aloha State exclusively, offering 7-night roundtrip inter-island cruises from Honolulu year-round. This can be a very popular way to enjoy and immersive Hawaiian cruise, but these are also the cruises most likely to be impacted by the new tax.
Norwegian Cruise Line has already expressed disagreement with the new tax and threatened to either sue the state or pull Pride of America from the region.
It might be more budget-friendly to book a Hawaiian cruise soon!