A federal judge denied CLIA's attempt to overturn Hawaii's 11% cruise tax, scheduled to take effect Jan. 1.
The cruise lines' trade group sued Hawaii in August and had filed a motion to stop the law from taking effect. U.S. District Judge Jill Otake denied the motion on Dec. 23.
CLIA and the federal government, which is supporting CLIA in the lawsuit, have both appealed the decision.
"On behalf of its member cruise lines, CLIA will continue to pursue this matter constructively through the courts while working with Hawaii to support local communities and sustainable tourism," a CLIA spokesperson said.
The plaintiffs have argued that the tax violates portions of the Constitution and federal laws related to vessel taxation.
Hawaii plans to use the tax revenue to fund environmental resiliency efforts.
"While the litigation is not over, we are confident in the legality of this law and will continue to vigorously defend it on behalf of the people of Hawaii," said Hawaii attorney general Anne Lopez.