Cruise Group Sues Hawaii Over 2026 Passenger Tax

The Cruise Lines International Association (CLIA) has filed a lawsuit against the state of Hawaii challenging a new cruise tax set to take effect in 2026.

According to reports, CLIA argues the measure is unconstitutional and violates both federal law and the U.S. Constitution.

The new tax requires passengers to pay 11 percent of their prorated cruise fare for each day their ship is docked in Hawaii. The fee is part of legislation passed by the Hawaii State Legislature in May, which also raises the state’s transient accommodation tax (TAT) for hotels, vacation rentals, and timeshares.

CLIA described the cruise-specific charge as an unfair financial strain on travelers who already pay multiple fees and taxes.

“Such a policy risks undermining a critical sector of Hawaii’s economy without justification,” the association said in a statement.

The group added that cruise tourism supports many small businesses through shoreside spending and related activities.

Meanwhile, Hawaii is also moving ahead with plans to reduce cruise traffic by 75 percent over the next decade. The initiative, led by the state’s Department of Transportation, is part of its broader carbon reduction strategy and aims to prioritize visits from smaller, more energy-efficient ships carrying fewer than 3,000 passengers.