Hawaii's Tourist Tax Faces Legal Challenge Amidst Climate Action Plan

A lawsuit has been filed challenging the constitutionality of Hawaii's new tourist tax, which seeks to impose a levy on cruise ship passengers to fund climate change mitigation efforts. The legal motion aims to prevent enforcement of the law on cruise passengers.

In May, Hawaii Governor Josh Green signed groundbreaking legislation targeting erosion, wildfires, and other environmental impacts by raising tax revenue. The law imposes an 11 percent tax on cruise ship bills and could generate nearly $100 million annually. Critics argue this will drive tourists away.

The lawsuit has been brought by the Cruise Lines International Association and local businesses reliant on cruise tourism, arguing that the tax exploits navigable U.S. waters. The case highlights Hawaii's annual $600 million cruise industry impact and warns of economic ramifications if cruises become cost-prohibitive.

(With inputs from agencies.)