Hawaii Tourism Sector Grapples with Slowing Visitor Numbers but Sees Strong Revenue Surge Fueled by Spending

Published on December 1, 2025

Hawaii’s tourism sector has been facing a decline in visitor numbers, yet it has seen a significant boost in revenue, fueled by higher spending per tourist. While the number of arrivals continues to drop, those who visit are spending more, particularly on luxury accommodations, fine dining, and high-end activities. This increase in per-capita spending has been pivotal in offsetting the downturn in visitor numbers. The growing trend of longer stays and a shift toward premium experiences has further driven revenue growth. As Hawaii attracts a smaller but wealthier group of travelers, the combination of fewer visitors and increased spending ensures that tourism remains a vital pillar of the state’s economy.

In October, Hawaii’s tourism sector saw a nearly 3% decline in visitor arrivals for the sixth consecutive month. However, tourism spending surged to $1.7 billion, reflecting a strong rise in per-visitor expenditure, according to preliminary data from the Department of Business, Economic Development, and Tourism.

A total of 749,095 visitors arrived in Hawaii in October, a drop from 771,673 the year prior. Despite fewer visitors, daily spending per person surged to nearly $277, reflecting a 12% increase from the previous year. This uptick in spending helped offset the drop in visitor numbers and boosted the state’s overall tourism revenue.

In terms of overall spending, Hawaii saw a 6.7% increase from October 2024, reaching $1.7 billion. Year-to-date, nearly 8.04 million visitors have traveled to the state, holding steady from 2024. Meanwhile, tourism revenue for the year has risen by 5%, reaching $17.87 billion.

Since May, tourism officials have noted a trend of declining visitor numbers but rising spending, a shift driven by ongoing global political and economic uncertainty. While fewer people are traveling to Hawaii, those who do are spending significantly more, which has provided a stabilizing effect on the state’s tourism revenue. This pattern is expected to continue, even as hotels prepare for a slower-than-expected holiday season.

In November, tourism experts predict the slowdown in arrivals will persist, even with one of the busiest Thanksgiving travel periods in U.S. history. The Transportation Security Administration (TSA) is expecting more than 17.8 million passengers to travel between November 25 and December 2, with Sunday alone seeing over 3 million passengers. Despite the national travel surge, Hawaii hotels are reporting softer-than-usual bookings for the holiday season, and rooms for late December—typically a peak period—are still available, a rare occurrence for the islands.

Several hotels have cited challenges in November, including a dip in business due to the federal government shutdown, which impacted military travel orders that traditionally provide a steady source of visitors. Although there was some improvement in October compared to September, the festive season is still expected to be quieter than usual.

In terms of visitor origin, Hawaii’s core U.S. West market saw a slight dip in arrivals by 0.7%, but spending surged by 15.5%, totaling $856.1 million. Meanwhile, the U.S. East market experienced a 2.5% increase in arrivals, with spending rising by 14.6% to $478.3 million. On the international front, Hawaii saw a 16% increase in arrivals from Japan, contributing $103.7 million in spending, while arrivals from Canada dropped by 20.3%, with nominal spending falling by 18.4% to $50.7 million.

Cruise arrivals also took a significant hit in October, declining by 38.6% to 21,883 visitors, compared to 35,616 the previous year.

Looking at the islands individually, Oahu, which typically sees the highest volume of visitors, experienced modest growth of 0.5% in arrivals and a 3.8% increase in spending. Maui saw a slight decrease in arrivals by 1.1%, though spending increased by 11.3%. Kauai posted a strong 10% increase in arrivals and a 16.2% rise in spending, while Hawaii Island saw a 9.2% growth in arrivals and a 4.8% increase in spending.

Molokai had a boost in October as over 3,000 visitors arrived for the Moloka‘i Hoe World Championship men’s canoe race, setting a record with 106 participating teams from locations including Hawaii, California, Washington, Australia, French Polynesia, Hong Kong, and New Zealand.

Despite a decline in visitor numbers, Hawaii’s tourism sector has seen a strong revenue surge, driven by higher spending on premium accommodations, dining, and activities, with wealthier tourists offsetting the drop in arrivals.

In conclusion, while Hawaii’s tourism sector continues to face challenges with a decline in visitor numbers, the surge in spending per tourist has helped mitigate these losses and maintain economic stability. With higher expenditure on premium experiences and longer stays, the state’s tourism industry remains a critical driver of its economy. Moving forward, Hawaii will likely continue to attract fewer but wealthier visitors, ensuring that the sector’s revenue growth persists despite ongoing fluctuations in arrivals.