Governor Josh Green just covered a wide array of critical issues, from tax cuts to affordable housing and healthcare access, during Hawaii’s annual State of the State address. The address was widely panned as ineffective and out of touch. Hawaii tourism, the state’s primary economic driver—was not a major focus compared to other state priorities. Despite the billions of dollars and countless jobs tourism generates, it remains the elephant in the room.
Tourism in Hawaii – the state’s economic driver.
Tourism conservatively contributes nearly a quarter of Hawaii’s economy, providing a reliable source of income for residents and businesses across the state. It funds public services, supports small businesses, and underpins the fabric of daily life in Hawaii.
Increased visitor fees to the front of the line.
Governor Green briefly acknowledged tourism in his speech, touching on the potential for increased visitor fees to help fund climate change initiatives. However, without concrete plans or strategies in relation to Hawaii tourism, industry professionals are left wondering whether the administration has a clear vision for the future of travel to Hawaii.
Hawaii’s economy is heavily dependent on visitor spending, which drives transportation, including airlines, to activities, entertainment, retail, and dining, among other impacts. Tourism generates more than $20 billion in revenue and supports well over 200,000 direct jobs. Despite these overwhelming figures, industry stakeholders have noted the need for far greater emphasis on tourism in state leadership discussions.
While housing and social welfare remain important pressing concerns, tourism is the lifeblood that enables the state to tackle these issues in the first place. Thriving tourism equates with more tax revenue, job opportunities, and greater economic resilience, especially in the face of rising inflation and uncertainty both domestically and internationally. Ignoring its role could have far-reaching consequences for the islands’ financial future.
How can Hawaii address tourism challenges?
The tourism industry faces numerous specific challenges, including growing competition from other destinations in the US, Mexico, the Caribbean, and abroad. In addition, there are changing perceptions of Hawaii’s receptiveness to visitors, as well as things like evolving traveler expectations and ongoing island labor shortages. Hawaii’s rising costs and stricter regulations are also placing added pressure on the industry, making it essential for the state to engage with stakeholders and devise strategies that ensure long-term viability.
Other destinations that rely on tourism have taken more proactive measures to support their industries, implementing strategic plans that include workforce development, wide-scale infrastructure improvements, and enhanced visitor experiences. Hawaii, however, remains focused on restrictions and fees without any clear vision for how the industry can evolve to meet new challenges and thrive in the future.
One of the major ongoing concerns is the increasing cost of visiting Hawaii.
From rising accommodation costs to increasing airfare prices, travelers are exploring alternative destinations that offer better value. Experts warn that Hawaii could face increasing competition without a strategy to address these challenges.
Has tourism fallen out of favor in Hawaii?
Over recent years, there has been a noticeable shift in Hawaii’s political landscape, with tourism increasingly viewed through the lens of negativity and challenges rather than opportunities and benefits. Concerns about overcrowding, environmental degradation, and cultural preservation largely dominate the conversation, leading to policies that focus primarily on limiting tourism’s footprint rather than harnessing its potential.
“Visitor count has no value – it had no value to me when I was with the hotels. If you can drive more revenue with less people, that’s a positive.” — Past President/CEO, Hawaii Tourism Authority.
While these concerns are valid, they should not entirely overshadow tourism’s importance to Hawaii and its positive economic contributions. The industry is not just about bringing visitors to Hawaii; it supports local farmers, artists, and countless small businesses that depend on the steady stream of travelers. A balanced approach that creatively leverages tourism’s benefits while addressing its challenges could benefit the state.
Governor Green briefly addressed tourism by re-proposing a visitor impact fee for his climate change funding plan. While this acknowledges the financial contributions of visitors, it lacks a broader discussion on tourism’s integral role in economic stability, Hawaii’s workforce development, and long-term sustainability.
What industry leaders are saying.
Industry professionals and business owners continue to express concerns about the state’s apparent lack of focus on tourism. Many feel that without clear leadership and strategic direction, Hawaii risks losing its place within the top-tier of domestic and global travel destinations.
The competition for travelers is more fierce than ever, and maintaining Hawaii’s brand requires a consistent, well-funded, strategic effort. Additionally, investment in infrastructure—such as basic transportation improvements, public facilities at the state’s iconic beaches, and better digital connectivity—could all help to enhance the visitor experience and encourage the repeat tourism that has long defined Hawaii.
Another obvious concern is the growing disconnect between tourism policies and the experiences of Hawaii visitors. Some visitors have expressed concerns about increasing costs and new or proposed fees, leading to negative perceptions that could impact return visits and word-of-mouth suggestions. These challenges will continue to mount without collaboration between government officials and tourism stakeholders.
The growing need for collaboration.
If tourism continues to be left out of Hawaii’s economic priorities, the state will inevitably face serious challenges in maintaining financial health. The hospitality and service sectors, which employ a major portion of the state’s workforce, could suffer from decreased visitor numbers and shrinking revenues.
Solutions might include developing a revamped long-term strategic tourism plan that aligns with Hawaii’s economic and environmental goals.
Looking ahead.
Hawaii still has a unique opportunity to redefine its tourism industry in ways that benefit visitors and residents alike. By embracing tourism’s crucial role in the state economy, Hawaii can build smart policies that support sustainable growth while preserving the islands’ cultural and environmental heritage.
However, the first step is recognition. Until then, the industry continues to struggle with unclear directives, future regulatory uncertainty, and a lack of overall support at the state level. As other destinations adapt and innovate, experts suggest recognizing evolving tourism trends is crucial for Hawaii to remain competitive.
For now, Hawaii’s tourism industry remains the elephant in the room—too big to ignore, yet frequently overlooked in critical discussions.
We welcome your input on Hawaii tourism and what can be done.
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I read the article. I own a house in Pahoa, HI (2016) and Salt Lake City, UT (1995).
For 30 Yrs I’ve watched SLC grow and the tourist industry encourages more visitors. It is ruining UTAH. More crowded and more expensive for locals. Snow skiing is as much as $350 a day. Hawaii is suffocating on success. Greed drives the engine. Developers selling their product to visitors. The locals foot the bill for infrastructure, traffic and quality of life trade offs. The rich needn’t get richer.
Using tourism fees/taxes to “combat” Climate Change in HI is a fool’s errand. You could burn all of the islands to the ground and not equal the output of China and India for a day. Maybe concentrate on illegal dumping, abandoned cars, and homeless camps?.
When will people finally say enough is enough. And not go to a place that only wants your opened wallet
Although Hawaii was/is beautiful or at least was, the bloom is off the rose. There are other beautiful beaches to visit where tourists are welcomed and are not treated like second class citizens.
I have been over 35 times and this last trip Dec’24 was the first time ever I was counting down the days to my departure rather than being depressed about leaving. It’s sad what has become of what was once a paradise
The upside of competition for tourist is resort packages offered by Costco Travel for Maui have come down considerable in price and are loaded with perks.
Overall room rates on these limited time deals are down by as much as 25 percent and they’re loaded with perks, most I’ve ever seen.
I’ve got a trip booked for Grand Wailea that has over $3,000.00 worth of perks for a 1 week stay. I’m like this can’t be right.
We did a Costco vacation package to the Big Island in 2018. Best vacation ever!
Richard, I agree perks and package deals can indeed be a great bargain. However, if I charge you $15 per night for parking in 2020, $50 night in 2025 but then offer a perk or package at only $35 a night, are you really getting that big a bargain?
Money saved in 2025 is still good, just don’t want people to lose perspective of the past few years of highway robbery price increases that today’s bargains are being based off of.
I think that the State has placed tourism as a highly focused discussion for far too long, as the State has placed this as the main topic of importance while neglecting other pressing matters in the islands.
Sure, we all agree with the previous CEO by thinking less people is better. It is better environmentally and socially.
Sure, the reputation of the islands is disintegrating as many who come to visit decide to stay. This aspect continues to displace the people who make Hawai’i, Hawai’i and changes the culture of the islands from what the world loves and adores into what the world despises.
If Hawai’i creates an additional source of economic income alongside with tourism, the tourism industry can be saved and always worked upon.
Tourists would still continue to come and deal with the issues of Hawai’i while on their vacations if costs are reasonable for them to do so. By making the islands a playground for the wealthy, dedicated Hawai’i tourists will not come back.
Yearly visitors since the early 80s. We have stay at all the major islands at one time or another. Until the fire west Maui was our favorite since we have focused on Oahu. We are retired military and that keeps Hawaii within our budget but even the Hale Koa is getting expensive. We love Hawaii and will continue to come but not as often. May try the Tahiti Cook Islands trip next year.
Just bought new car here in Oregon young man helping us said he is from Oahu and several of his family work at the dealership to include is father. Father said they could not afford Hawaii anymore.
I am betting the rebuild of L.A. will be mostly complete before Lahina gets rebuilt. Send these politicians packing.
This is Not surprising. The Governor’s brief mention of tourism was related to how the government could get more Fees (taxes) from tourists. For most of Hawaii’s politicians, tourism is all about milking the tourist for a money grab. Plus, the comments from the past CEO of Hawaii Tourism Authority are blatant. Hawaii wants Less tourists but will charge more $$$ for hotels, etc. Thus, Hawaii has become a playground for the super wealthy. This philosophy will trickle down to local business who will see Less revenue with fewer tourists buying their products.
We have owned timeshares (yes, plural) in Maui since 2007. We travel from Canada to Maui 2-3 times/year. It’s not cheap for us Canucks but we absolutely love our timeshares that are right on the Kaanapali beach. The county and state taxes have more than doubled, and the annual maintenance dues have nearly doubled. The Maui county council continually hits timeshare owners with additional taxes.
Our timeshares are fully deeded giving us real property ownership, yet we don’t get to vote in the municipal or state elections. Me thinks that all timeshare owners with deeded properties should get a vote in who runs for county or state office. One way to help get some of those dirty dogs out of office.
We visit Hawaii every Dec for the Pearl Harbor ceremonies. If it weren’t for our dedication to honor the lives that were lost there, I’d nix going anymore. I absolutely love Hawaii but it is getting ridiculous. The Hilton charges 70 bucks a night to self park now. Are you kidding me?? If they only want high rollers to visit, they’re only going to eat at high end restaurants. All the wonderful mom and pop places will cease to exist and they’re going to ruin the livelihood of a lot of locals. Green is a money hungry leech that needs to stop thinking about lining his pockets and start thinking about Hawaii’s people…..
Aloha,
Seventy dollars a night to self park? That’s a nice touch. I quit the Hilton about 6 years ago when they wanted fifteen dollars a day for internet in San Diego. Nice try, next stop is the JW…
Mahalo
We visited the Big Island in May 2018. We were lucky to find a quiet, peaceful condo looking out to the Waikola valley. The view was so relaxing, I could’ve stayed there for an eternity drinking my morning coffee. It was an incredible vacation. I’m sad to see that overtourism is casting such a negative impact on the islands. We had thought of visiting Maui sometime in the future. But with all the nasty headlines about entitled tourists and locals’ equally negative reactions, I’d rather not be associated with any of it.
Am I the only one who noticed or cares that Green’s priority from all these proposed extra fees is something vaguely known as a “climate change fund?” What exactly is that? How are funds allocated? To friends? Relatives? Business allies? Big donors? With all of the problems Hawaii has, climate change isn’t even in the Top Ten. And even if it were, how does Green plan to solve it? Hawaii is an insignificant speck compared to the world’s great polluters, so I think Green needs to worry less about the world and more about where he lives. Locals always talk about the high costs of groceries, lack of affordable housing, spiraling homelessness and crime, low wages requiring most people to have 2 jobs to make ends meet — and Green’s focus to more money for climate change. Um, OK. Talk about the complete inability to read a room! And yet the people of Hawaii keep re-electing these same clowns every time they’re given a choice, so this must be what the majority wants.