Popular travel destination to charge 'tourist tax' upwards of $65 per night

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  Travel and Leisure on Sun, Oct 12th, 2025 by Fox News

A recent announcement from the Maui County Commission has introduced a new tourist tax that could raise the cost of a nightly stay by as much as $65 on the island’s most popular resorts. The measure, which went into effect on June 1, 2024, is part of a broader plan to fund infrastructure upgrades, beach maintenance, and public transportation projects that the county believes will preserve Maui’s natural beauty and improve the visitor experience.

The tax is not a flat rate. Instead, it is tiered based on the nightly room price. Hotels with rooms priced below $200 per night will pay a modest $0.75 per night, while those with rooms over $1,000 will be required to pay the maximum $65. This graduated approach is intended to target high‑spending visitors, who are generally less sensitive to price increases, and to mitigate the financial impact on budget‑conscious travelers. The revenue from the tax will be deposited with the county’s general fund and earmarked for projects such as expanding the free public parking lots near popular beaches, refurbishing the historic Lahaina Courthouse, and upgrading the public bus system that connects the island’s main towns.

The decision to implement the tax followed a public hearing in which hotel owners, tourism board officials, and local residents expressed divergent views. Hotel lobbyists warned that a $65 surcharge could push away price‑sensitive travelers, potentially reducing overall tourism revenue in the long term. In contrast, many local businesses and environmental groups praised the tax as a necessary investment in the island’s infrastructure and a way to reduce the environmental impact of increased visitation. The Maui County Tourism Board highlighted that the county currently receives $3.6 million annually from the existing $2.75 per night tax, and projected that the new tax would bring in an additional $25 million to $30 million per year—enough to fund all the planned projects over the next decade.

The article linked to the county’s official tourism page (www.mauicounty.gov/tourism) for more detailed breakdowns of the tax schedule and projected revenue. A PDF document attached to that page provides a year‑by‑year estimate of how the tax revenue will be allocated: 40 % to beach and shoreline protection, 30 % to transportation, 15 % to marketing, and the remaining 15 % to general county improvements. In addition, the article includes a link to a Maui tourism board press release that cites a 2019 study showing that every $1 of tourism tax revenue was reinvested into projects that increased overall visitor satisfaction, leading to higher repeat visitation rates.

One of the most significant comparisons drawn in the Fox News piece is to California’s “tourism tax” on luxury hotels, which can reach $30 per night for rooms over $500. Maui’s new rate of $65 per night, while considerably higher, is still modest when compared to some Caribbean resorts that charge similar taxes. The article notes that the Maui tax is the highest in the United States for a per‑night tourist surcharge on a popular travel destination.

The tax will be collected by hotels and forwarded to the county on a monthly basis. Maui’s County Commissioner, who voted in favor of the measure, said in a statement, “The tax is a small price to pay for protecting our environment and improving the quality of life for both residents and visitors.” She also acknowledged that the policy might initially deter some travelers, but emphasized that the long‑term benefits would ultimately outweigh the short‑term cost.

Travelers who plan to visit Maui before the new tax fully kicks in can still enjoy discounted rates at a range of accommodations. Low‑cost hotels and vacation rentals below the $200 threshold will not be affected, and many of these properties have historically been popular with families and budget‑conscious tourists. The tax will most heavily impact high‑end resorts, which already attract affluent visitors and benefit from the island’s premium branding. As a result, the tax may subtly shift the distribution of tourist spending, potentially encouraging more visitors to explore lesser‑known areas of the island that do not carry the surcharge.

In sum, Maui’s new tourist tax represents a strategic attempt to balance the island’s growing popularity with the need for sustainable development. While the surcharge could add up to $65 per night for some visitors, the projected revenue will fund essential projects that keep Maui’s beaches clean, its transportation reliable, and its historic sites preserved. The move aligns with a growing trend in the United States, where popular tourist destinations are implementing tiered taxes to help finance infrastructure and environmental protection initiatives—showing that even a small surcharge can have a significant positive impact on both the local economy and the visitor experience.