The state of Hawaii announced on May 11 the release of a new report, “Hawai‘i–Japan Economic Relationship and Impact,” which analyzes the state’s partnership with Japan across tourism, housing, defense, education, finance, and agriculture.
This report is significant because it highlights how deeply intertwined Hawaii’s economy is with Japan through various industries. The analysis points to both established strengths and areas for future collaboration that could benefit local businesses and communities.
Governor Josh Green said, “Hawai‘i’s relationship with Japan is not just historic — it is one of our state’s most dynamic, mutually beneficial economic partnerships. As we look toward the future, strengthening our ties with Japan means investing in shared opportunities that support local businesses, create jobs and open pathways for innovation across both our communities. Hawai‘i and Japan have built something remarkable together, and this partnership will continue to be one of our state’s greatest strengths.”
James Kunane Tokioka, director of the Hawai‘i Department of Business, Economic Development and Tourism (DBEDT), said “Japan remains Hawai‘i’s closest and most significant global economic partner. This report provides a clear overview of key sectors while opening new avenues for collaboration that benefit both Hawai‘i and Japan.”
The report shows Japanese travel to Hawaii has recovered to about 46 percent of pre-pandemic levels but lags behind recovery rates in other Asia-Pacific destinations. Japanese visitors remain important retail consumers in Hawaii due to their higher spending on shopping compared to other groups. Most Japanese tourists primarily visit O‘ahu rather than neighboring islands.
In real estate markets—both residential and commercial—Japanese investors are prominent participants. In defense contracting, growth opportunities exist as defense spending makes up over ten percent of Hawaii’s gross domestic product (GDP) with contracts growing at more than fourteen percent annually.
Efforts by the Governor include supporting wildfire-affected communities such as Lahaina; focusing on healthcare access; addressing homelessness through housing programs; advancing renewable energy; influencing tax reform for affordability; framing homelessness as a health care issue; collaborating across entities to combat climate change; all within broader public policy initiatives according to the official website.
Tokioka said: “We know how important Japanese visitors are not just to tourism overall, but specifically to Hawai‘i’s retail and small business community. We will continue to work closely with industry partners, airlines and travel agencies in Japan to strengthen air service, promote new itineraries and rebuild visitor confidence.”
Looking ahead, officials see continued cooperation between Hawaii and Japan as an opportunity for further economic growth in multiple sectors.
