The Impact of the Canadian Travel Boycott on U.S. Tourism
The Canadian travel boycott has significantly affected the U.S. tourism sector, with estimates suggesting a loss of around $20 billion in revenue. In 2024, 26% of the 77 million global tourists who visited the U.S. were from Canada, totaling approximately 20 million visitors. This is a substantial number, especially considering Canada’s population is roughly 40 million. Despite this, many Canadians are choosing to vacation domestically or in other countries like Europe, which has led to a decline in U.S. tourism.
The U.S. continues to impose additional fees and obstacles that could further deter travelers. For example, a new “visa integrity fee” could add $250 to some travelers’ budgets, while others might face five-figure fees just to obtain a tourist visa. Even visa waivers for tourists from friendly nations are being charged double in 2026. These added costs could push more visitors away from the U.S., as seen with many big-spending tourists from friendly countries opting to visit Canada instead.
Hawaii Introduces a New “Green Fee” for Tourists
One notable state implementing a new tax is Hawaii, which will require visitors, including Canadians, to pay a “green fee” starting January 1, 2026. This is the first state in the U.S. to enforce such a tax, despite the ongoing Canadian travel boycott. The fee aims to address environmental concerns related to overtourism and climate change, with the funds intended to support environmental stewardship, hazard mitigation, and sustainable tourism.
The new tax, officially known as H.B.1077 / S.B. 1396, was signed into law by Hawaii Governor Josh Green and passed by the state’s legislature with wide margins. It applies to all visitors, not just Canadians, and will be added to existing accommodation taxes. The total tax rate will increase from 10.25% to 11%, resulting in an additional $2 USD per day for visitors.
Purpose and Funding of the Green Fee
The primary goal of the green fee is to protect Hawaii’s environment, including its beaches, reefs, and local communities. The funds will be used for various projects, such as coral reef protection, beach restoration, and initiatives to prevent wildfires. Additionally, the money will support hurricane preparedness and promote sustainable tourism programs that benefit local communities.
Governor Green emphasized that the fee is designed to preserve the Hawaiian islands for both residents and visitors. He stated that the initiative will help restore and maintain natural resources critical to the health and safety of all who live in or visit Hawaii.
Public Reaction to the Green Fee
While the green fee has received support from environmental advocates, some residents and business owners have expressed concerns. Critics argue that the fee may make Hawaii less attractive to budget-conscious travelers, potentially leading to reduced spending at local businesses. Some also worry that the funds may not be used effectively, and that the state could become too expensive for tourists.
On the other hand, supporters believe that Hawaii’s unique natural beauty and environmental initiatives will attract environmentally conscious travelers. Governor Green highlighted that investing in good environmental policy could lead to a more committed and long-term visitor base.
Other Destinations with Similar Taxes
Hawaii is not alone in implementing a green tax. Several other destinations have introduced similar fees to combat overtourism and support environmental conservation. For example, Baja California Sur in Mexico charges a $34 CAD “Embrace It Tax,” while Venice imposes a €5 daily “Access Fee.” Bhutan’s Sustainable Development Fee is significantly higher at $275 CAD per person per day, though it has been temporarily reduced. Cruise ship tourists in Greece must also pay a fee when visiting Santorini and Mykonos.
Despite these examples, Hawaii’s $2-a-day fee is relatively modest compared to other destinations. However, the impact on Hawaii’s environment and infrastructure is expected to be significant.
Future Outlook
As the green fee takes effect in 2026, its success will depend on how effectively the funds are used and whether it deters travelers from Canada. Given the ongoing travel boycott, it remains to be seen whether the fee will further reduce the number of Canadian visitors to Hawaii. With many U.S. states already distancing themselves from Canadian tourists, the future of tourism in Hawaii looks uncertain but also presents an opportunity for sustainable development.
