The US federal government and the cruise industry blocked a climate and tourism tax on cruise ships just hours before it was due to take effect.
In 2025, lawmakers in Hawaii added a climate fee of 0.75 per cent to the state’s existing accommodations tax, raising the total rate from 10.25 per cent to 11 per cent.
Hotels and rentals are already subject to the tax; however, its application to cruise ships was halted after cruise companies and the US federal government challenged it in court.
Hawaii officials argued that cruise ships count as lodging when docked. The fee would have added an 11 per cent daily charge to each passenger’s fare, according to Skift.
While the fee was approved by a Hawaii district court, cruise companies appealed the decision to the US Court of Appeals, where two judges blocked the tax from taking effect.
The tax was due to come into effect on 1 January but has now been delayed.
