Cruise Tax Controversy: Is Norwegian Cruise Lines Charging Illegal Fees in Hawaii? (2026)

A cruise line defies court orders and charges passengers the 'green fee'.

In a surprising move, Norwegian Cruise Lines has begun charging its passengers the environmental 'green fee' and visitor tax for stays in Hawaii, despite a court injunction prohibiting local tax authorities from collecting these fees on cruise ships. This decision comes as the cruise industry challenges the legality of Hawaii's green fee law, which mandates ships to pay the same transient accommodations tax as hotels and vacation rentals.

But here's the twist: Norwegian promises to refund passengers if the industry wins the court battle. This raises the question: is it fair to charge customers now and potentially refund later?

The controversy deepens as the Cruise Line Industry Association, the industry's trade group, states that handling charges during ongoing litigation is up to each cruise line. This leaves passengers confused and potentially facing unexpected fees.

Don Yonce, a passenger on Norwegian's Hawaii cruise, received an email notification about the 14% state and county transient accommodations taxes (TAT) for port stays. Despite the court injunction, Yonce was surprised to find the TAT charge on his invoice during the voyage. He and other passengers were under the impression that the injunction prevented these charges.

The association representing Norwegian argues that the TAT significantly increases cruise costs, impacting not only operators but also local businesses. However, Yonce believes Norwegian's actions undermine their legal argument. He questions how they can claim harm to passengers and suppliers while still collecting the tax.

Hawaii's green fee, a groundbreaking initiative, aims to protect the state's environment from overtourism, wildfires, and climate change, generating an estimated $100 million annually. The cruise industry's share of this fee is significant, according to Governor Josh Green.

As the legal battle continues, passengers like Yonce are left wondering about the fairness and transparency of these practices. Will Norwegian's strategy backfire, or will it set a precedent for the industry? Share your thoughts on this complex issue in the comments below.

Cruise Tax Controversy: Is Norwegian Cruise Lines Charging Illegal Fees in Hawaii? (2026)

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