Tourists heading over to Hawaii next year are being advised of an accommodation tax increase, which may affect existing and new hotel bookings.

Commencing 1 January 2018, a one percent increase on the Transient Accommodations Tax (TAT) will be applied to lodging accommodation across Hawaii.

This will raise the TAT from 9.25 percent to 10.25 percent and is expected to stay in effect until 31 December 2030.

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According to Hawaii’s Tourism Authority, the tax increase will help pay for Honolulu’s light metro rail system, which is being extended by 20 miles and receiving 21 additional stations between Kapolei in Leeward Oahu to Ala Moana Center.

The rail system will be beneficial to both tourists exploring the main island and locals.

Although a one percent increase may not seem like a drastic rise, agency groups such as Helloworld Travel have decided to shield their clients from the extra spend by absorbing the additional tax.

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In a statement, the Australia-based group said it will cover existing booking with money on file to Hawaii that will be affected by the adjustment.

“This includes bookings made through Wholesale brands Qantas Holidays and Viva Holidays as well as GO Holidays in New Zealand that will be affected by the increase and set to depart from 01 January 2018.”

Helloworld Travel

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Will the tax increase affect anyone you know?