As Hawaiʻi prepares to introduce a pioneering green fee aimed at protecting the environment for short-term visitors, a similar initiative established last year, known as the Aloha i ke Kai Ocean Stewardship User Fee, provides valuable insights into conservation efforts that impact marine tourists.
Starting in 2024, this unique ocean fee requires individuals participating in activities like parasailing, dolphin tours, and snorkeling excursions in Hawaiʻi’s waters to pay an extra $1. The key objective of this fund is to mitigate the negative impacts of these recreational activities on the delicate marine ecosystem, which includes coral reefs, fish, turtles, and other marine life.
The ocean stewardship fee, which bettors see as a promising step towards accountability, has received significant backing from certain ocean tour operators. They view the fee as a means to enhance their ongoing improvement projects. However, skepticism exists among other operators about its efficacy.
The collected funds from the ocean user fee are directed into a dedicated fund managed by the Division of Aquatic Resources (DAR) within the state. This program is set to expire in 2031, allowing for a future assessment of its effectiveness and financial management.
According to Denver Coon, owner of Maui-based Trilogy Excursions and president of the Ocean Tourism Coalition, support for the fee stemmed from its alignment with their existing projects. Crucial to this support was the promise of dedicated funds for important conservation projects, such as the installation of day-use mooring buoys.
Unlike the upcoming green fee, which charges a 0.75% tax on hotel stays and short-term visits, this ocean user fee targets participants directly, emphasizing the principle that those who use and benefit from ocean resources should contribute to their upkeep.
Legislators initiated the ocean stewardship user fee in 2021 to create dedicated funding streams for marine-focused projects. This initiative was a response to the need for a system where those who engage in ocean activities can be held accountable for their impact on local marine resources.
David Sakoda, a representative from DAR overseeing the initiative, highlights the program’s unique ‘user pays, user benefits’ model as a significant feature of its design.
Notably, the fee does not distinguish between residents and tourists, even though the bulk of the revenue is expected to come from visitors. This mirrors the approach of the green fee, which also primarily affects short-term visitors.
Companies holding commercial use permits from the Division of Boating and Outdoor Recreation must notify their guests about the fee and collect it accordingly. These companies must keep accurate records and report on their operations to ensure compliance; failure to do so may result in penalties, although enforcement measures have not yet been applied.
Sakoda noted that the initial focus for the first year was on establishing operational systems and generating revenue rather than imposing penalties. The revenue accumulated in the special fund is earmarked for vital projects such as marine debris cleanup, coral restoration efforts, and the maintenance of mooring buoys.
Currently, there are approximately 220 day-use mooring buoys throughout Hawaiʻi’s state waters, yet their maintenance has historically not been the state’s responsibility. Many of these buoys have been funded and maintained by commercial operators and conservation groups like the Mālama Kai Foundation, which focuses on sustainable marine practices.
Victoria Martocci, project manager for Mālama Kai’s Maui Day-Use Mooring Program, praised the fee’s potential to transform grassroots conservation efforts into a sustainable program. The mooring buoys play a crucial role in protecting coral reefs by providing designated areas for boats, preventing damage that can occur when boats anchor improperly.
While many in the ocean tourism industry welcome the establishment of the special fund, some harbor doubts regarding the potential for mismanagement. To address these concerns, operators pushed for a sunset clause in the initiative, establishing a review point in 2031 to evaluate the program’s performance.
Coon remarked that this sunset date offered a form of security, ensuring that operators could revisit the legislation if the program did not fulfill its promises.
During 2023 public hearings, operators expressed concerns about the lack of transparency in how funds would be managed and allocated, alongside a general unease regarding the justification for increased costs in light of existing commercial use permits. “The biggest sticking point other programs have had is the lack of transparency and mismanagement of funds,” Sakoda acknowledged, recognizing the importance of accountability in ensuring the project’s success.
Thus far, the Aloha i ke Kai website has made strides toward public transparency, providing information about the program and offering an interactive dashboard that details funds collected by activity type and location. The initiative has successfully raised approximately $2 million in its first year, achieving a compliance rate of 55% to 60%. However, the ambitious goal for the program is around $5 million annually.
Early efforts have focused on operational costs; actual funding for projects is expected to commence soon, following the stipulated timelines outlined on the program’s website. A significant portion of the revenue—25%—is slated to support the mooring buoy program.
Despite these advancements, confusion persists among some companies regarding the program’s requirements and participation. While aware that the fee is now active, several operators remain uncertain about their obligations. Many tourists and locals engaging in ocean activities remain unaware of the $1 fee.
This lack of awareness may partly stem from limited public outreach, as the Division of Aquatic Resources primarily engaged operators who hold commercial use permits. Notably, certain small scuba operators and rental shops that send customers out with equipment may inadvertently bypass the fee altogether.
Moreover, operators are expected to educate their customers about the fee and its intended use, adding an extra layer of responsibility to their already comprehensive pre-activity safety and educational talks.
There are broader concerns as well, similar to those voiced regarding the new green fee. Some residents and businesses worry that imposing additional fees could deter tourism at a time when the industry is gradually recovering from the impacts of the COVID-19 pandemic.
However, Dylan Moore, a tax economist at the University of Hawaiʻi Economic Research Organization, does not anticipate significant negative repercussions from a $1 fee.
He indicates skepticism that such a minor increase would deter tourists significantly, especially when factoring in the flat fee structure. Moore argues that a flat fee is more advantageous than a percentage-based fee, as it imposes a clear and stable charge for environmental impacts.
This perspective is echoed by Michael Roberts, an environmental economist at UHERO, who sees merit in the concept of green fees, provided that there is confidence and transparency regarding the expenditure of the funds collected.
Sakoda indicated that efforts are underway to enhance transparency further, with an expectation that by July, an interactive dashboard detailing expenditures will be operational. This initiative aims to build trust within the community and among operators that their contributions are being put to effective use.
image source from：civilbeat
