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An Aloha Airlines map of the Hawaiian Islands, depicted in a vintage mural at Daniel K. Inouye International Airport in Honolulu, illustrates the inter-island routes that once connected O\u02bbahu to Maui and the neighbor islands. A new state report calls for rebuilding Japanese visitor demand beyond Waik\u012bk\u012b to draw more travelers to those destinations. PC: Brian Perry<\/p>\n
Japanese visitors have been drawn more to Waik\u012bk\u012b than to Maui\u2019s resorts, and a new state report calls for changing that by rebuilding and diversifying Japanese visitor demand.<\/p>\n
On Monday, the Hawai\u02bbi Department of Business, Economic Development and Tourism released\u00a0Hawai\u02bbi\u2013Japan Economic Relationship and Impact, a comprehensive look at one of the state\u2019s most important international partnerships spanning tourism, real estate, defense, agriculture, education and finance.<\/p>\n
Japan\u2019s influence on Hawai\u02bbi\u2019s economy<\/p>\n
The numbers underscore how deeply Japan is woven into Hawai\u02bbi\u2019s economy: Japanese entities hold 55.5% of all foreign-owned property, plants and equipment in the state, and more than half of all Hawai\u02bbi workers employed by foreign-owned businesses work for Japanese-owned firms. Japan has been the state\u2019s top import supplier for the past decade.<\/p>\n
But the tourism picture is more complicated \u2014 and for Maui, it carries a potential opportunity.<\/p>\n
A stalled Japanese visitor recovery; an opportunity for Maui<\/p>\n
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Japanese visitor arrivals have recovered to just 46.4% of pre-pandemic levels statewide, trailing the rebound seen elsewhere in Asia-Pacific. Recent monthly data shows gradual improvement, with Japanese arrivals up 4.5% in January 2026 compared to the prior year. But the report makes clear that recovery is far from complete \u2014 and that when Japanese visitors do come, they largely stay on O\u2019ahu.<\/p>\n
\u201cJapanese visitors have fallen in love with Hawai\u02bbi largely through their experiences on O\u02bbahu,\u201d says a DBEDT news release. \u201cIn fact, only 13.6% visited Kaua\u02bbi, Maui, or Hawai\u02bbi Island\u2014a far smaller share than other major visitor markets. With each island offering a unique experience, most Japanese visitors have only seen a small fraction of what the state has to offer.\u201d<\/p>\n
For Maui, the gap matters. According to the\u00a0Hawai\u02bbi\u00a0Tourism Authority, the island draws nearly\u00a090% of its visitors from the US Mainland \u2014 a base that has recovered steadily since the 2023 Lahaina fires but offers limited room for growth.<\/p>\n
Japanese travelers represent a different visitor profile: they spend a higher proportion of their budgets on shopping than tourists from any other major visitor market, making them among the most economically valuable visitors the island can attract. Still impacted by the August 2023 wildfires, hotel occupancy in Maui County reached 68% in March 2026, up slightly from the year before, but Japanese travelers have barely factored into that recovery.<\/p>\n
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\u201cJapan remains Hawai\u02bbi\u2019s closest and most significant global economic partner,\u201d said James Kunane Tokioka,\u00a0DBEDT director. \u201cThis report provides a clear overview of key sectors while opening new avenues for collaboration that benefit both Hawai\u02bbi and Japan.\u201d<\/p>\n
Tokioka said the state plans to work with airlines, travel agencies and retail partners in Japan to promote new itineraries and rebuild visitor confidence, with a specific focus on drawing travelers beyond O\u2019ahu.<\/p>\n
\u201cWe know how important Japanese visitors are not just to tourism overall, but specifically to Hawai\u02bbi\u2019s retail and small business community,\u201d Tokioka said.<\/p>\n
Other economic sectors<\/p>\n
Beyond tourism, the report identifies several sectors where the Hawai\u02bbi-Japan relationship is strong or growing. Defense contracting is flagged as a high-growth area, defense spending accounts for 10.3% of the state\u2019s gross domestic product and contracts are expanding by 14.3% annually. The report suggests Hawai\u02bbi-based subsidiaries of Japanese companies could play a larger role in construction, logistics and high-tech manufacturing tied to Indo-Pacific Command.<\/p>\n
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Regarding housing, the report points to Japan\u2019s prefabricated construction industry as an \u201cemerging solution\u201d for Hawai\u02bbi\u2019s chronic housing shortage. It notes that the Japanese are the largest group of foreign buyers.<\/p>\n
Hawai\u02bbi also hosts 44 Japanese-owned captive insurance companies, a niche but significant financial sector the report says should be protected and expanded.<\/p>\n
Coming up next<\/p>\n
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