Waikiki Hotel Occupancy Hits 89% in March as Japanese Tourist Numbers Surge

Waikiki hotels recorded an average occupancy rate of 89.2 percent in March, the highest for that month since 2019, driven largely by a sharp rebound in Japanese visitor arrivals, the Hawaii Tourism Authority reported.

Japanese arrivals to Hawaii totaled 148,000 in March — a 34 percent increase from the same month last year and the closest the market has come to its pre-pandemic benchmark of 165,000 monthly visitors. The recovery has been fueled by expanded airline capacity, with both ANA and Japan Airlines adding frequencies on Honolulu-Tokyo routes, and the yen stabilizing after years of weakness.

“The Japanese traveler is back, and they’re spending more per trip than before,” said HTA President Kalani Kaanaana. “Average daily spending by Japanese visitors was $312 in March, up from $268 in 2019.”

The average daily room rate across Waikiki reached $342 — a record for March — with luxury properties like the Halekulani and Ritz-Carlton Waikiki commanding rates above $800. Revenue per available room hit $305, marking a full recovery to pre-pandemic levels when adjusted for inflation.

The strong numbers come as several Waikiki hotels complete major renovations. The Sheraton Waikiki finished a $150 million refresh in February, and the Hyatt Regency is midway through a $120 million overhaul expected to wrap up by summer.

Not everyone is celebrating. Community advocates note that the tourism boom puts additional strain on infrastructure and housing. The Hawaii Appleseed Center recently estimated that each new hotel job generates demand for 1.3 housing units, further tightening an already constrained market.