Hawaii Considers Removing Ban On Controversial Tourist Item That Could Generate $11.5M From Visitors – TheTravel
In an attempt to earn more revenue, Hawaii is considering a major shift in its approach to tourism that would benefit not only the state but also create stronger local and tourist markets.
The Aloha State’s long-standing ban on recreational marijuana is positioned to be lifted, which could generate a minimum of $11.5 million a month from tourists.
According to a report by the Cannabis Public Policy Consulting, as commissioned by the Hawaii Department of Health’s (DOH) Office of Medical Cannabis Control and Regulation, the legalization of recreational marijuana could drive between $46 and $90 million in monthly cannabis sales, with tourists accounting for at least $11.5 million of the total.
Medical marijuana dispensaries in Hawaii became legal in 2015, but the state has since legalized marijuana use in 2000 to treat certain health conditions. Today, state officials are considering the legalization of recreational marijuana, which could impact its tourism market.
Marijuana Moment reports that Cannabis Public Policy Consulting’s survey data and comparative analyses found that the Aloha State could earn as much as $90 million in sales every month by year five of implementing recreational use of marijuana.
This estimate already factors in the cannabis tax of up to 15%, which could impact domestic and international tourism. Last year’s request by officials for research on legalizing adult-use marijuana also found that tourists could contribute a minimum of $11.5 million in monthly sales, a huge impact on Hawaii’s tourism industry.
Japan remains the leading source of international arrivals in Hawaii, and accounted for almost 800,000 Japanese tourists in 2024, followed by Canada, Australia, and South Korea. Cannabis use is illegal in Japan, and some state lawmakers fear that legalizing recreational marijuana in Hawaii could drive them away.
Some said that it would be awkward to visit Hawaii, where cannabis use is legal, since it is illegal in Japan. Others think that legalizing recreational marijuana makes Hawaii less safe to visit. For Canadians, the report says that legalization doesn’t affect their plans to visit Hawaii.
But the report found that this has a very minimal impact on Japanese tourists visiting Hawaii.
“There is anticipated to be minimal loss from Japanese tourists, and gains from Canadian tourists who indicated they are likely to visit Hawai‘i in the future. Perception data from both surveys show that the majority of respondents (57.5 percent in Japan and 64.5 percent in Canada) reported that adult-use legalization would not influence their decision to visit Hawai‘i,” the report says.
According to the report, the projected net is the “modest” estimate for the state’s revenue after accounting for a lesser impact on Japanese visits and more gains on Canadians.
State Sales:
Between $46 and $90 million
Tourists (Accounted for the Total Sales):
$11.5 million in minimum
As soon as the legislators agree to the proposed legalization of recreational marijuana, Hawaii will hold a referendum in November with these constitutional amendments written on the ballots:
“Shall the Constitution of the State of Hawaii be amended to:
Hawaii Governor Josh Green has previously indicated that he would sign the new legislation as soon as it reaches his desk in support of adult-use marijuana, although it still has to go through the House.
If this is approved, the legalization of recreational cannabis use in Hawaii will take effect on July 1, 2027.
As Hawaii weighs in on legalizing the recreational use of marijuana, the talks grow heavily in the Aloha State’s tourism economy, which relies on international and domestic travelers. Hawaii gets the largest percentage of visitors from the U.S. mainland, where 24 states have legalized recreational use.
Supporters of legalization said that Hawaii’s visitor spending—beyond flights, hotels, and dining—will get a boost, particularly from mainland travelers, who mostly have legal access to cannabis use in their home states.
This will also make Hawaii more competitive with other U.S. destinations, including California, Nevada, New York, and Rhode Island, which already have existing regulated cannabis markets.
Tourists from international markets, like Japan, also add another layer of complexity, as marijuana remains socially taboo in Japan, although the research and surveys have found that this has minimal impact on Japanese arrivals in Hawaii.
This isn’t the first time Hawaii has attempted to gain more tourism revenue. Last year, officials approved the Green Fee, an 11% tourism tax, which will go to Hawaii’s environmental conservation and climate disaster reduction, plus a 3% surcharge by Hawaii counties, a move that experts say is “illegal extortion.”
Also known as Act 96, the Green Fee is estimated to generate $100 million per annum, and all visitors who book hotels or other short-term rentals, for instance, as well as cruise passengers, will be charged the additional fees.
But the U.S. government and cruise experts joined forces to ban Hawaii’s Green Fee, and this was canceled hours before implementation.
As Hawaiian lawmakers discuss economic gains, the tourism industry is also watching closely for policy shifts that could either deter or attract tourists from the U.S. mainland and abroad, which in turn could reshape how the Aloha State is promoted and experienced by tourists from anywhere in the world.
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