Hawaii-Japan Tourism Paradox: Strong Dollar Creates Economic Shift

The recent decline of the yen has created a paradox in the relationship between Japan and Hawaii. While the strong dollar makes it more affordable for Hawaiians to visit Japan, the weak currency is making it harder for Japanese tourists to afford trips to the islands.

According to data from 2025, the US dollar was 37.7% stronger against the yen compared to 2016, resulting in a significant decrease in Japanese visitors to Hawaii. In 2019, Japanese visitors spent $2.19 billion on the islands, but by 2025, that number had dropped to $1.08 billion.

The decline in tourism has been mirrored in trade between Japan and Hawaii, with the weak yen making it cheaper for Hawaiians to import goods from Japan but pricier for Japanese buyers of Hawaiian products. However, some local businesses are finding ways to adapt by taking their products directly to Japan rather than relying on tourists.