A new economic impact report released by the American Hotel & Lodging Association and the Hawai’i Hotel Alliance highlights the substantial role Honolulu’s hotel industry plays in the local and national economy.
Conducted by Oxford Economics, the study found that Honolulu hotel operations and visitor spending generate $12 billion in economic activity, support 63,912 jobs, and contribute $1.9 billion in federal, state, and local tax revenue.
Hotels Drive Broad Economic Activity
Beyond lodging, the report details how hotel activity fuels a wide network of businesses across Honolulu. Visitor spending supports restaurants, retail stores, and arts and entertainment venues throughout the city.
Each year, hotel guests spend $6.5 billion locally—about $760 per room night on lodging, dining, shopping, and other activities. Taxes generated by hotel operations and guest spending help fund public services, including schools, infrastructure, and first responders.
Rosanna Maietta, President and CEO of the American Hotel & Lodging Association, said the data underscores how closely the hotel industry is tied to Honolulu’s economic and social fabric. She noted, “When hotels thrive, they create good-paying jobs, support small businesses, and deliver essential tax revenue that benefits every Hawai’i resident. Continued investment and smart policy will continue to fuel that momentum.”
Jerry Gibson, President of the Hawai’i Hotel Alliance, added that hotels support tens of thousands of local workers and source from island-based businesses. He said, “As we continue to grow, strong support for hospitality ensures our local economy remains resilient and ready for the future. Our industry’s success is Hawai’i’s success.”
Key Findings at a Glance
The report outlines the following economic contributions from Honolulu’s hotel industry:
- $12 billion in total economic activity
- 18,088 direct hotel jobs supporting $1.4 billion in annual wages
- $830.9 million in annual federal tax revenue
- $722.2 million in annual state tax revenue
- $329.9 million in annual local tax revenue
Honolulu’s hotel market includes 29,112 guest rooms across 93 properties, with nearly 8.6 million hotel room nights sold annually. Looking ahead, 997 additional hotel rooms are currently in development, signaling continued investment in the city’s hospitality sector. For hotel suppliers, these figures point to sustained demand for goods and services ranging from food and beverages, furnishings, and maintenance to technology and other operational support.
