As reported by The Garden Island, Hawaii closed out 2025 with visitor arrivals remaining significantly below pre-pandemic levels, underscoring continued challenges in the state’s tourism economy. According to preliminary data from the state Department of Business, Economic Development and Tourism (DBEDT), Hawaii welcomed 9.64 million visitors in 2025, a slight 0.6% decrease from 2024 and still well below the 10.4 million visitors recorded in 2019 before COVID-19 disrupted global travel
Spending Is Up — But Pressure Remains
While overall visitor counts were flat, total visitor spending rose 5.7% to $21.75 billion in nominal dollars, with average daily visitor spending reaching a record $273 per person. However, industry leaders note that inflation tempers much of that gain, and rising operational costs are placing increased pressure on hotels, restaurants, and tourism-dependent small businesses.
December reflected the broader trend: arrivals dropped 4.3% year-over-year, even as spending increased modestly. Oahu saw declines in both arrivals and spending, while Maui continued its recovery from the 2023 wildfires. Kauai, notably, experienced a slight dip in visitor counts but saw an increase in spending — a signal that higher-value travelers may be helping offset softer volume.
The Middle Market Challenge
Industry leaders emphasized that luxury travel performed well in 2025, but the “middle market” — historically a core strength for Hawaii tourism — remains soft. Hotel occupancy averaged just under 74%, a level some operators say is insufficient to sustain smaller businesses . Several closures and layoffs across retail, dining, and visitor services illustrate the strain, particularly as labor agreements and shipping costs continue to rise.
The temporary closure of the Hawai‘i Convention Center through 2028 is also expected to reduce group and conference travel statewide, limiting a key segment of higher-spending visitors .
International Markets Still Recovering
Japan showed modest improvement, with arrivals up 3.3% in 2025, though still below historical norms . Canada, on the other hand, declined sharply, with arrivals down 11.6% amid economic uncertainty . Tourism leaders continue to advocate for stronger marketing investment to support Hawaii’s competitiveness in international markets.
What This Means for Kauai Real Estate
For those tracking Kauai real estate trends, Hawaii tourism recovery, and property investment in the islands, the takeaway is nuanced:
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Visitor volume remains below pre-pandemic highs.
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Spending per visitor is stronger.
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Luxury properties and higher-end travel segments are outperforming.
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Mid-market and group travel face headwinds.
From a real estate perspective, this environment often supports continued strength in luxury Kauai homes, oceanfront properties, and resort real estate, while broader economic softness may influence workforce housing and small business sectors tied to tourism.
As Hawaii enters 2026, the trajectory of international travel recovery, marketing investment, and convention center reopening timelines will be key factors shaping the future of Kauai tourism, vacation rental demand, and long-term property values on the Garden Isle.
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