The World's Highest Tourist Tax Is Found Right Here In The US

We hear quite a bit about cities popular with tourists implementing a tourist tax, which is a fee for all visitors entering the city. Paying a tourist tax when visiting Europe is becoming more common and they are usually simply applied to your hotel bill. The tax amounts vary, but most are fairly low across the continent. In fact, the highest tourist tax is not in Europe, but in Honolulu, Hawaii.

After compiling research and doing some number crunching, British financial organization Money discovered that Honolulu charges a 10.25% tax that the state calls a transient accommodations tax, plus a 3% surcharge. This percentage is not the highest in the world on its own, however, with San Francisco charging 14%. What makes Honolulu's tax the highest is the fact that hotel stays are, on average, higher than other cities imposing tourist taxes. Average hotel rooms in Honolulu can be close to if not well over $300 per night. However, tourist taxes are not merely cash grabs for those at the helm of the state's tourism industry.

The goal of tourist taxes is to better fund things like infrastructure needs or even sustainability efforts. Tourism already boosts local economies by shopping, booking accommodation, and more, but some destinations are dealing with overwhelming amounts of tourists. This so-called overtourism can cause damage to famous landmarks and natural spaces. Additionally, the term "priced out of paradise" definitely applies to Hawaii's residents, partly because short-term vacation rentals like Airbnbs increase housing costs in popular cities. What makes this adverse effect of tourism even bigger for Hawaii is the fact that the Aloha State already has the highest cost of living in the United States.

If you do want to avoid Honolulu's tourist tax, remember that Hawaii is comprised of much more than its capital city. Perhaps add some of the archipelago's underrated attractions to your Hawaii bucket list. In doing so, you can also ease Hawaii's concerns surrounding overtourism in its more well-known destinations. In general, remember to be a conscientious visitor as these islands are filled with fragile ecosystems and passionate residents who want to preserve the natural beauty and keep the state livable for locals.