CLIA Sues Hawaii Over New Tax

Princess ship in Hawaii

The Cruise Lines International Association has filed a lawsuit against Hawaii over a new cruise tax that is set to go into effect in 2026.

According to a recent report by Yahoo! Life, the lawsuit states the new fee is unconstitutional and violates both the U.S. Constitution and federal law.

As previously reported by Cruise Industry News, Hawaii plans to begin charging a new fee that will see guests paying 11 percent of the prorated cruise fare for the days docked at the state.

The charge is part of a broader law passed by the Hawaii State Legislature last May that increases the island’s transient accommodation taxes (TAT).

In addition to impacting cruise passengers for the first time, the new rule raises taxes on hotels, short-term rentals and timeshares.

In a statement, CLIA said that the new fee is an additional financial burden on passengers already subject to substantial fees and taxes.

“Such a policy risks undermining a critical sector of Hawaii’s economy without justification,” CLIA continued.

The association noted that small businesses are significantly impacted by cruise tourism and cruise line shoreside activities.

In related news, Hawaii is also planning to shrink its cruise business significantly over the next decade by reducing 75 percent of its ship visits.

The decrease is part of a plan recently announced by the Hawaiian Department of Transportation that aims to cut the state’s carbon emissions.

One of the main focuses of the project is for the state to promote visits from smaller vessels, which are said to be more efficient than the ships that carry over 3,000 guests.

 

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