Under the segment tax, each landing is taxed. Thus, a flight involving one intermediate stop is taxed twice as much as a nonstop flight, and a flight with two intermediate stops is taxed three times as much as a nonstop flight. This ticket tax shifts the burden to low-cost short haul carriers. These are our local carriers. This will hurt Hawaii.
Tourism is Hawaii's largest industry.
International visitors are a vital part of our tourism industry. The change in the ticket tax on international flights puts a greater tax burden on international visitors. International tourism is a major foreign exchange earner for the United States. It is one of the bright spots in our balance of payments picture. It generates millions of American jobs.