Hawaii Business Brief: Tourism Shifts, Tax Hikes, and Infrastructure Investments

This week, Hawaii's business landscape is marked by significant developments across several sectors. Tourism continues to evolve, with [travelandtourworld.com](https://www.travelandtourworld.com/news/article/hawaii-tourism-faces-shift-fewer-visitors-higher-spending-and-shorter-stays/) and [travelweekly.com](https://www.travelweekly.com/Hawaii-Travel/Insights/Hawaii-visitor-spending-rises-despite-decline-in-arrivals) reporting fewer visitor arrivals but increased spending, signaling a shift toward luxury travel. Simultaneously, the restaurant scene adapts, as indicated by the JINYA Ramen Bar closure, creating a dynamic environment for entrepreneurs. Adding to this complex environment, the state's economic outlook includes Governor Green's proposed $1.8 billion tax increase, which businesses are bracing for. Looking at the financial and regulatory fronts, a critical issue is the upcoming expiration of federal tax credits for the solar industry. This is already creating both challenges and opportunities within the clean energy sector, despite HGIA's successful fundraising for clean energy, highlighting the need for adaptive strategies. Furthermore, the green light given by the PUC to Hawaiian Electric’s wildfire mitigation plan ([hawaiitourismauthority.org](https://www.hawaiitourismauthority.org/media/15247/october-2025-visitor-statistics-press-release.pdf)) will bring increased grid resilience and the implementation of capital improvement grants by OHA. Finally, real estate investors and developers face uncertainty regarding Maui's short-term rentals, with council gridlock impacting exemption frameworks. Infrastructure is also evolving with the upcoming elections and rail expansion, adding to the list of challenges and opportunities ahead for Hawaiian businesses. With Honolulu also looking to expand its landfill, the state is clearly seeking sustainable solutions in the face of a growing population.