Popular Cruise Destination To Implement New 11% Tax On Visitors

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A dream cruise destination for many is set to become much more expensive to visit, after the local government voted to approve a new law that will see a significant Transient Accommodation Tax (TAT) passed onto cruise passengers for the first time.

A cruise ship in hawaii

On Friday, 2nd May 2025, the Hawaii State Legislature voted to extend the 11% TAT to include cruise guests – prorated for the days ships are docked in the Hawaiian islands – with the change taking effect from 1st January 2026.

While hotel stays in Hawaii have long been subject to this tax, cruise guests have previously been exempt.

Now, for example, guests on a 14-night voyage that calls at Hawaiian ports for three nights will be taxed 11% on those three nights of the cruise fare.

The new fee is expected to raise nearly $100 million annually, and unlike similar taxes in other ports aimed at infrastructure upgrades, Hawaii’s tax is explicitly tied to environmental conservation and the protection of native ecosystems and culture.

The move is designed to ensure that all visitors contribute to the upkeep and preservation of the islands’ natural beauty.

In 2024 alone, nearly one million cruise guests visited Hawaii – enjoying everything from the volcanic wonders of the Big Island to the lush jungles of Kauai and the cultural riches of Oahu.

“The more you cultivate good environmental policy … the more likely it is we’re going to have actually lifelong, committed travellers to Hawaii,”

Governor Josh Green

Shore excursions focused on nature and Hawaiian culture – such as snorkelling with sea turtles, hiking to waterfalls, attending traditional luaus, or exploring Iolani Palace – are popular highlights of Hawaiian cruises.

Lawmakers argue that it’s only fair that cruise guests help sustain the experiences they come to enjoy.

Cruise Industry Response & Future Impact

While the bill has passed both chambers of the Hawaiian legislature, it still requires the governor’s signature to become law.

Cruise lines have not yet officially responded with changes to itineraries or pricing structures, but some pushback is already evident.

Norwegian Cruise Line, which operates the Pride of America on exclusive inter-island cruises within Hawaii, has expressed strong opposition.

The cruise line has hinted at legal action or even pulling its year-round vessel from the state – a move that would significantly impact Hawaii’s cruise tourism.

The Pride of America is currently the only ship offering weekly, closed-loop 7-night cruises within the islands, roundtrip from Honolulu. These voyages are likely to be among the most affected by the new tax, as they do not leave Hawaiian waters.

Other major cruise lines that regularly visit Hawaii include Royal Caribbean, Princess Cruises, Holland America Line, Carnival Cruise Line, Disney Cruise Line, Celebrity Cruises, and Oceania Cruises.

Many of these itineraries originate from the US West Coast or are part of longer repositioning or world cruises.

Given the rising costs, budget-conscious travellers may want to lock in their Hawaiian cruise plans before the new tax takes effect in 2026.

Cruising to Hawaii may be about to get more expensive – but the money will go towards preserving the landscapes, ecosystems, and heritage that make the islands one of the most treasured destinations in the world.

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Cruise Mummy

Jenni Fielding is the founder of Cruise Mummy. She has worked in the cruise industry since 2015 and has taken over 30 cruises. Now, she helps over 1 million people per month to plan their perfect cruise holidays.

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