CLIA Files Lawsuit Against Hawaii Over ‘Unconstitutional Fee’

CLIA, Cruise Lines International Association, has filed a lawsuit against the State of Hawaii due to the new ‘Green Tax’ that is scheduled to be implemented next year.

The fee will extend Hawaii’s 11% transient accommodations tax to cruise ships. CLIA said that the tax being added to cruise ships is unconstitutional and filed a lawsuit yesterday. The lawsuit can be read in full here.

The law also allows counties to collect an additional 3% surcharge bringing the total imposition to 14% of prorated fees.

CLIA sent the following statement to Cruise Fever about the lawsuit:

“The cruise industry, together with local businesses reliant on its economic contributions, opposes the extension of Hawaii’s Transient Accommodations Tax (TAT) to cruise ship passengers. We believe the extension violates both the U.S. Constitution and federal law, while imposing 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. That’s why we are pursuing all appropriate means to make sure that doesn’t happen, including filing suit yesterday in the United States District Court for the District of Hawaii.

“The economic significance of cruise tourism to Hawaii is undeniable. Small businesses reap significant benefits from cruise tourism and cruise line shoreside activities, which generated $639 million in total economic impact, including $116 million in tax revenues, and supported 3,000 local jobs and $215 million in wages in 2023, according to an analysis by Tourism Economics / Oxford Economics.

“These figures reflect a vibrant partnership that sustains communities across the islands. Extending the TAT to cruise passengers threatens to deter visitors whose spending fuels this economic engine, risking job losses and eroding the financial stability of businesses dependent on tourism.

“The cruise industry values its longstanding relationship with Hawaii and is committed to working collaboratively with state officials to develop a fair and legally sound framework that promotes sustainable economic growth.

“We urge policymakers to reconsider this proposal, which could disproportionately harm the very communities that rely on cruise tourism’s contributions. A balanced approach, grounded in mutual cooperation, will better serve Hawaii’s economic interests and preserve the livelihoods of its residents.”