Members of the Green Fee Advisory Council updated Hawaii’s visitor industry Monday on the process that they are using to ensure that the nation’s first-ever climate impact fee strengthens Hawaii’s environment, builds resilience and enhances the visitor experience.
Jeff Mikulina, the chair of the new, volunteer climate fee advisory group, provided an update during a luncheon panel, “Green Fee in Focus,” on opening day of the Hawaii Tourism Conference, which concluded Tuesday. He was joined by advisory group member Jeff Wagoner and Dawn Chang, chair of the state Department of Land and Natural Resources.
The pressure is on for the 10-member volunteer Green Fee Advisory Council, who were appointed by Gov. Josh Green about a month ago, to come up with recommendations on how to spend the new green fees that were established in Act 96, Senate Bill 1396.
Effective Jan. 1, the new law raises the state transient accommodations tax (TAT) by 0.75%, which brings the TAT to 11%.
The higher TAT, which applies to hotels, vacation rentals, and for the first time to cruise ships, is expected to raise some $100 million annually.
There was strong interest in Hawaii’s new green fee at the conference, which drew more than 660 registered attendees to the Hawaii Convention Center under the theme “Pupukahi I Holomua — Unite to Move Forward.”
Hawaii’s visitor industry, given the well-documented pushback from visitors regarding the high cost of traveling to Hawaii, has not always embraced the fee, and some members remain skeptical. However, conferees made it clear during sessions that most embrace moving toward a more sustainable destination and welcome projects, like beach replenishment, that the new fee has the potential to support.
Hawaii Hotel Alliance President Jerry Gibson, a longtime hotelier, said the organization, which is represented on the council by Wagoner, the CEO and president of Outrigger Hospitality Group, is supportive of the opportunities that the green fee makes possible.
“None of us like increasing the TAT — it’s tough on the tourists, it’s tough on the industry,” Gibson said.” But when we think of the purpose and what this money will go for and having tourists in the resort zones that will have world-class beaches … we felt that his sacrifice was worth it.”
He said the visitor industry expects to get about a third of the funds raised by the fee to use for projects like replenishing sand on the beaches.
“This is going to be a blessing for the entire industry and all of the islands,” he said.
Gibson said the other two-thirds is likely to be used for things like creating fire breaks in areas that are drought prone or getting rid of invasive species.
“We want to do the right things with this money,” he said, adding that he has faith that the Green Fee Advisory Council will listen and make decisions that benefit the community.
Wagoner said during the panel that while the TAT currently raises about $1.1 billion annually, most gets directed to the general fund.
“When we look at the reality of can we take $100 million of that and do something else with it, it’s probably not real practical to be able to make that happen,” he said. “To do what we have the ability to do now, something else would have had to stop.”
He said that the council despite only having met twice is very passionate. The council is committed as are Green, Chang and James Kunane Tokioka, the director of the state Department of Business, Economic Development &Tourism, and members of the state Legislature to ensuring that the funding remains focused on the key priorities and remains available.
Mufi Hannemann, president and CEO of the Hawaii Lodging and Tourism Association, said the industry trade organization now supports the green fee as the Legislature put in language and safeguards to ensure that it provides a direct nexus to the tourism industry.
“We like the fact that the bill will enable every county to suggest to the Governor’s committee how funding from the fee can be applied to a tourism-related environmental impact program or initiative specific to that county. Once the programs are identified with input from the counties, the Legislature and the public will have an opportunity to review and comment before the recommendations are finalized.”
During the panel, Chang thanked Green, the Legislature and all of the groups that supported the bill that created Act 96, which she says DLNR sees as a dedicated source of funds to support a resilient Hawaii and supplement DLNR’s current work.
“We manage 1.3 acres of land, three miles of ocean waters and everything in between. So, do we need help? Yes. What are our urgent needs? Many,” she said. “Visitors come here for a particular reason. Our mission at DLNR is to preserve and protect these natural resources but we cannot do it by ourselves. We need to do it in collaboration with the community, with other government agencies and with members, for example, many of you who are here.”
Mikulina, who serves as the executive director of Climate Hawaii, said during the panel that the council is made up of a cross section of people from across the islands, who are engaging in healthy discussion with each other and with the community.
“The governor wanted balance and I think that we’ve really got that,” he said. “This is going to be a collective process.”
Members of the Green Fee Advisory Council must develop a criteria for project evaluation under the three main areas described in the bill. They also must recommend a prioritized list of projects for Green to include in his executive supplemental budget request, although the Legislature will make final appropriations and project selections.
Mikulina said, “We want to ensure that this green fee does not get lost in the shuffle, that it does not simply disappear into the general fund but is clearly earmarked for projects that build climate resilience, support our resources and importantly provide for sustainable tourism and that regenerative experience of our visitor.”
Green said in a statement, “This Green Fee is a generational commitment to protect Hawaii’s future. Under the leadership of Jeff Mikulina and this advisory council, every dollar collected will work smarter and harder — to safeguard our natural and cultural treasures, build climate resilience and share responsibility with visitors for the stewardship of our islands.”
Mikulina said the public can register to follow the work of the Green Fee Advisory Council on its website greenfeehawaii.org, which went live on Monday about 45 minutes prior to the panel.
“This is going to be all hands on deck. We really want your voice to help us shape the process, shape the criteria and ultimately shape the projects that get funded,” he said.
Mikulina also invited the public to attend a webinar hosted by the Green Fee Advisory Council today at 10:30 a.m., which will include a discussion of the purpose and approach of the newly formed Green Fee Advisory Council, as well as a preview of the process ahead in the coming months.
Interested community members may register to attend the Zoom session at 808ne.ws/4pskcdM.
