Summary: A joint report from the American Hotel & Lodging Association (AHLA) and the Hawai’i Hotel Alliance finds Honolulu’s hotel operations and visitor spending generate $12 billion in economic activity and support 63,912 jobs.

A new analysis by the American Hotel & Lodging Association (AHLA) together with the Hawai’i Hotel Alliance shows the Honolulu hotel industry is a major economic engine. The report estimates that hotel operations and visitor spending produce $12 billion in overall economic activity for the city and sustain 63,912 jobs across the region.

Economic footprint of Honolulu hotels

The study underlines how spending tied to hotel stays flows through the local economy. Guests’ expenditures extend beyond room charges to restaurants, retail, entertainment and suppliers, multiplying the sector’s impact across many industries in Honolulu.

These financial interactions also translate into substantial tax receipts that help fund public services and infrastructure throughout the city and state.

Tax revenue contributions

According to the report, taxes generated by Honolulu hotels are a meaningful revenue source at federal, state and local levels.

  • Federal tax revenue: $830.9 million annually
  • State tax revenue: $722.2 million annually
  • Local tax revenue: $329.9 million annually

Jobs, wages and workforce

The hospitality sector is also a significant employer in Honolulu. The report shows 18,088 jobs are directly supported by hotel operations, and the industry provides $1.4 billion in annual wages. These roles range from front-line service positions to management and support services.

Waikiki hotels and beachfront illustrating visitor spending and hotel industry impact in Honolulu
Waikiki's hotels help drive visitor spending and support local businesses across Honolulu

Visitor spending ripples through local businesses

Visitor expenditures tied to lodging benefit a broad cross-section of the local economy: restaurants, retail shops, farmers supplying produce, and entertainment venues all see increased demand when hotel occupancy is strong. The report emphasizes that hotel guest spending helps sustain small businesses and supports economic vibrancy across the islands.

Supply and future capacity

The report also outlines current lodging capacity and pipeline development in Honolulu. There are 29,112 hotel guest rooms in the city, with nearly 8.6 million hotel room nights sold each year. Investment continues: 997 new hotel rooms are reported to be in development, signaling ongoing demand and expansion.

New room development is likely to create additional jobs, boost purchases from local suppliers and sustain revenue flows that municipalities rely upon for services and infrastructure maintenance.

Why this matters for travelers and the industry

So what? For travelers, a robust hotel sector means continued investment in visitor amenities, services and infrastructure that help maintain Honolulu’s appeal. For local businesses and policymakers, the data underlines how dependent the broader economy is on the health of the hotel industry. Sustained occupancy and continued development can translate into more jobs, wider choice for visitors and greater tax resources to support community needs.