The legislation was signed into law by state Governor Josh Green on Tuesday and is projected to generate around $100 million per year to combat climate change issues such as shoreline erosion and wildfires.

The funds generated by the tax rises will support schemes such as replenshing sand on Waikiki beaches, promoting the use of hurricane clips to secure roofs and removing flammable invasive grasses that contributed to the devastating Lahania wildfire in 2023.

Speaking at the bill signing ceremony, Governor Green stressed that measures such as building firebreaks and employing a fire marshal are necessary.

He also believes that other states and countries will need to take action themselves to address climate disasters.

Green said: "There will be no way to deal with these crises without some forward-thinking mechanism."

The measures add an extra 0.75 per cent to the daily room tax starting from January 1, 2026, amounting to an extra $3 tax on a $400 hotel room rate.

It also levies a new 11 per cent tax on cruise ship bills starting from July 2026 - prorated from the number of days the vessels are in Hawaii ports to bring cruise ship taxes in line with room taxes on land.

The area's hotels ultimately supported the legislation and Governor Green thanked the industry for looking at "the greater good" for tourism, Hawaii and the planet as a whole.