Honolulu is expected to grow 2% this year to about $6.4 billion, according to the Hawaii Tourism Authority, as tourists seek more affordable travel options and more affordable hotels.
The tourism board, which oversees more than 2 million workers, said it expects about 200,000 new jobs in tourism over the next five years.
The economy is expected by 2020 to grow more than 6%.
Hawaii has the third-largest tourism industry in the country after California and New York.
Hawaii is the first major U.S. state to pass a tourism-related tax, but it has struggled to attract tourists and attract them back.
Hawaii has no income tax and is exempt from sales taxes.
