The Ripple Effect of Honolulu Hotels: AHLA Report Shows $12 Billion in Economic Activity

Image: Waikiki Beach and Diamond Head, Honolulu, Hawaii. (Photo Credit: Adobe Stock/tomas del amo)
Image: Waikiki Beach and Diamond Head, Honolulu, Hawaii. (Photo Credit: Adobe Stock/tomas del amo)
Noreen Kompanik
by Noreen Kompanik
Last updated: 4:00 PM ET, Fri February 13, 2026

A new economic impact report released by the American Hotel & Lodging Association (AHLA) and the Hawai’i Hotel Alliance has revealed the Honolulu hotel industry’s far-reaching impact on the island’s economy.

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.

“Honolulu’s hotels are more than places to stay. They are centers of opportunity,” said Rosanna Maietta, President & CEO of the American Hotel & Lodging Association in a statement. “This new data underscores how deeply our industry is woven into the city’s economic and social fabric. 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, “Hotels are the backbone of Honolulu’s economy – supporting tens of thousands of local workers, sourcing from island-based businesses, and keeping our communities vibrant in every corner of the state. When visitors choose to stay here, their spending ripples far beyond the hotel walls – helping local farms, restaurants, shops, and entertainers succeed. 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 report findings indicate the hotel industry in Honolulu:

  • Generates $12 billion in economic activity.
  • Directly employs 18,088 hotel jobs, providing $1.4 billion in annual wages.
  • Contributes $830.9 million in annual federal tax revenue.
  • Contributes $722.2 million in annual state tax revenue.
  • Contributes $329.9 million in annual local tax revenue.

Honolulu is home to 29,112 hotel guest rooms with nearly 8.6 million annual hotel room nights sold across 93 hotel properties. Future hotel investment in Honolulu includes 997 rooms in development.  


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