Hotel rates in Hawai‘i have soared up to 50%.
Visiting Hawai‘i has become considerably more costly since the pandemic.
In a detailed article for SFGate, contributing editor Christine Hitt raises critical questions, noting an average daily hotel rate increase of 25% statewide since 2019. Some islands, including Hawai‘i Island (the Big Island) and Kaua‘i, have seen rates rise by over 50%.
The state’s tourism promoters claim this is intentional, aimed at maintaining visitor-related economic contributions without increasing the overall number of tourists. By 2025, this strategy appears somewhat successful, with total visitor spend showing a healthy increase over 2024 while keeping visitor numbers relatively stable.
However, as Hitt highlights, this leaves budget-conscious travelers with fewer choices—especially for Hawai‘i residents wishing to vacation on other islands and native Hawaiians wanting to reconnect with family in Hawai‘i after relocating to the continental U.S. due to high living expenses.
This particular group faces significant challenges, as many tourism businesses extend discounts to Hawai‘i residents (who can present a Hawai‘i state ID), but not to Native Hawaiians living outside the state. This limitation arises from the fact that there’s no standard ID recognizing them, given that tribal IDs are issued by tribal governments, none of which are federally recognized for Native Hawaiians—some believe that creating such a government would formalize their dispossession and impact their sovereignty claims.
Before the pandemic struck in 2020, Hawai‘i’s tourism had been on an upward trend for over a century. The islands welcomed their first hotel, the Moana Hotel in Waikīkī, which opened in 1901, followed by the Royal Hawaiian in 1927. Initially, traveling to Hawai‘i was a distant dream for many Americans. The journey required either substantial time and budget for a lengthy voyage or expensive flights on a Pan American Clipper. (In the 1930s, a round-trip fare from the West Coast equated to approximately $16,000 in today’s dollars.)
The introduction of jet airliners made air travel more accessible, prompting Hawai‘i to promote its tourism to a broader audience. By the 1970s, United was advertising round-trips from California to Hawai‘i for about $200 (equivalent to around $1,400 today), with prices dropping even further after the industry was deregulated in 1978. This drove tourism to a peak of over 10 million annual visitors in 2019, coinciding with the lowest approval ratings among Hawai‘i residents regarding tourism’s positive impact on their lives. This prompted a shift in focus from merely attracting more tourists to managing visitor numbers to ensure local infrastructure wasn’t overwhelmed.
Basic economics explains that when demand for a product rises, but supply remains constant or decreases, the scarcity drives prices higher.
Hitt also highlights the situation on Kaua‘i, which has been somewhat unique this year. While statewide international visitor numbers have been sluggish in 2025 due to decreased visitors from Canada and a long-standing trend of falling visitor numbers from Asia, Kaua‘i has managed to maintain steady visitor traffic since its smaller share of international travelers has afforded it elevated hotel demand and higher rates.
Yet, the pivotal question remains—is it worthwhile for Hawai‘i to market itself to visitors with smaller budgets? More importantly, would it make any difference?
Tourism promoters have no control over hotel pricing. Even if hotel prices did fluctuate, would other essential aspects of travel follow suit? Travelers who find accommodations and flights more affordable would still likely encounter high costs for everyday needs like groceries, meals, attractions, and transportation. The “isolation tax” on imported goods to the islands means that most items carry a premium.
Travelers priced out of Hawai‘i will undoubtedly look for destinations offering better perceived value. Those who choose vacations based purely on cost may not align with the profile of tourists that Hawai‘i actively seeks. With its distinct cultural attributes, Hawai‘i continues to attract travelers willing to pay a premium, indicating that many believe the unique experiences it offers justify the added expense. After all, Hawai‘i is a one-of-a-kind destination that can’t be replicated elsewhere.
The author acknowledges the importance of Hawaiian Language diacritical marks, such as the kahako (macron), although some may have been omitted to ensure web browser compatibility.
