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• Hawaii increasing tax on hotels, cruise ships
• Green fees to raise $100 million a year
• Public asked to help decide priorities

WASHINGTON - When Kawika Riley surveys the beaches and forested hills of the Hawaiian islands, his eyes are drawn to a dangerous interloper: flammable invasive grasses.

Two years ago, such grasses fed devastating wildfires that tore through the island of Maui, killing more than 100 people and causing .

"What you're seeing when you see those grasses grow is literally your risk and vulnerability increase," Riley, a coalition leader with environmental group Care for ‘Aina Now, told Context.

But managing the environment, such as controlling invasive grass growth, is expensive.

Hawaii has a gap of more than in conservation funding – a growing concern for the tourism mecca of surf, reefs and sacred mountains.

Now, under a first-in-the-nation law, Hawaii will implement a climate impact fee or "" on the 10 million tourists who visit each year, expecting to raise $100 million a year.

"It's not just going to fund public-sector conservation but could also be a major force to empower local communities to make their own communities safer right now," Riley said.

Community engagement

In July, communities, businesses and environmental groups began a process to help decide priorities for the new funding, which legislators will take up in January and be part of a yearly process.

Supporters say the green fee is a model for what local authorities can do as the administration of President Donald Trump rolls back funding and priorities for climate change mitigation and sustainability efforts.

"It's important that states at least in the moment protect themselves a little bit and take advantage of their strengths, and our strength is tourism," Gov. Josh Green, who spearheaded the new policy, said at June town hall meeting.

"Everyone should pay a part of sustaining this beautiful place," he said.

Green called for a "wide open public discussion" to consider ideas for spending the funds.

Leaders of the Waipa Foundation, a nonprofit that oversees a 1,600-acre watershed on the island of Kauaiʻi, said they hope the funds can go towards native forest restoration.

The foundation focuses on stream restoration and invasive plant management, Executive Director Stacy Sproat and Biocultural Resource Manager Faith Blalock said in an email.

“Secured funding for long-term environmental stewardship is a large part of what enables us to create more resilient communities and landscapes," they wrote.

Tourism economy

Tourism is Hawaii's central economic driver, accounting for about a

As of January, the green fee will raise a tax on hotel and short-term vacation rentals by 0.75% and impose a levy on cruise ship visitors.

Jack Kittinger, a senior vice president with Conservation International, said he helped drum up interest in a green fee for Hawaii by emphasizing how the gap in conservation funding threatened tourism.

Kittinger had worked in Palau, which created a in 2018.

"It's a threat to all of us, the communities that rely on these resources and the sector, and that started to resonate,” Kittinger said.

Some worry the green fee could backfire.

"Tourism taxes have a ripple effect through our entire economy," said Ted Kefalas, director of strategic campaigns at Grassroot Institute of Hawaii, a think tank.

"Travellers are discovering new destinations, and if we continue raising taxes … we risk pushing visitors away."

The likewise warned that such fees could hurt the industry that is still recovering from the pandemic.

Yet another group, the Hawaii Hotel Alliance, eventually offered support, after pushing back against earlier proposed tax hikes, with assurances that the funds can be used for priorities such as beach restoration and public access to shorelines.

"Any increase in costs for our guests is not ideal,” Kekoa McClellan, the alliance's chief advocate, said in an email.

But McClellan called the law a “strategic win” for hotels given the funds will go to “critical areas that will support the long-term health and sustainability of Hawaii's tourism industry."

The law is drawing interest elsewhere in the United States.

In Oregon, a state also known for its natural beauty, campaigners likewise hope to fill a gap in conservation funding by charging tourists.

This year lawmakers in Oregon debated a bill to by 1% to raise about $30 million a year for conservation.

Whale watching draws a multitude of visitors, while the Klamath region is a throughway for migrating birds that attracts tourists to an annual winter festival, said Danielle

Moser, wildlife program manager with Oregon Wild, an advocacy group.

The festival has been cancelled for the last two years due to a lack of birds, Moser said.

"That's a direct impact for a small rural community that's now directly linked to species in decline,” she said.

The bill passed the state house but did not obtain a final vote before adjournment in June.

Moser said the proposal would be revived in the next session.

(Reporting by Carey L Biron; Editing by Anastasia Moloney and Ellen Wulfhorst.)