Hawaii
Hawaii is America's Worst State for Business in 2024, with off-the-charts costs and climate risks rising
An aerial image taken Aug. 10, 2023, shows destroyed homes and buildings burned to the ground in Lahaina in the aftermath of wildfires in western Maui, Hawaii.
Patrick T. Fallon | Afp | Getty Images
First came the Covid-19 pandemic, striking at the very heart of Hawaii’s economy.
Then, just as the state was beginning to recover, came last summer’s deadly Maui wildfires, which killed more than 100 people, destroyed upward of 2,000 structures, did $5.5 billion in damage and paralyzed the state’s tourism industry yet again.
Finishing last in CNBC’s 2024 competitiveness ranking, America’s Top States for Business, seems pretty minor in comparison to all of that. But Hawaii’s economic issues go even deeper than the high-profile tragedies that have befallen the state.
Consider the Honoapiilani Highway.
Hawaii Route 30 hugs the western shore of Maui. Well before the fires, state transportation officials warned in a 2021 report about climate risks that the highway was at risk from rockfalls, landslides, flooding from high waves, storm surges, coastal erosion and even tsunamis. Already, portions of the road frequently close due to flooding.
“Given our understanding of what is changing, we need to make some tough decisions to ensure the long-term viability of the State,” the report said.
A sign is posted warning of earthquake damage to the road from seismic activity at the Kilauea volcano on Hawaii’s Big Island, in Hawaii Volcanoes National Park on May 17, 2018.
Mario Tama | Getty Images
Hawaii was never going to do well in a competitive ranking that emphasizes infrastructure, as this year’s does. The state is remote — 2,400 miles from the mainland — and as an island chain, basic infrastructure features that are important elsewhere, such as freight rail, are irrelevant. But now, even the infrastructure the state does have is under threat, such as the Honoapiilani Highway.
“That’s the only link to the rest of the island from the area where the wildfires were,” said U.S. Secretary of Transportation Pete Buttigieg, who visited Hawaii in February.
The state is set to receive $2.8 billion under the Bipartisan Infrastructure Law, and nearly half of it will go toward rebuilding bridges and roads. Some $160 million of that will go toward relocating portions of the Honoapiilani Highway.
“We’re funding them to raise that highway to higher ground,” Buttigieg told CNBC. “We’re not going to make somebody build a road the exact same way if it’s getting washed out year after year by what used to be a once-in-100-years event.”
In an aerial view, cars back up for miles on the Honoapiilani Highway as residents are allowed back into areas affected by the wildfire, in Wailuku, Hawaii, on Aug. 11, 2023.
Justin Sullivan | Getty Images
It will be at least 2027 before the improvements are complete, transportation planners say. Add the many other roads and bridges needing help, and it begins to explain why Hawaii’s infrastructure ranks No. 47 in this year’s Top States study.
The high cost of paradise
Hawaii is also America’s most expensive state to do business in, with the third-highest cost of living. Residents and businesses pay the nation’s highest utility costs, and corporate and individual taxes are high.
With so many inherent disadvantages, why doesn’t Hawaii finish at the bottom of the rankings every year? The answer, in part, is because it’s Hawaii, with a legendary quality of life. But now, even that is under siege.
Hawaii ranks No. 7 for Quality of Life in 2024, its lowest ranking in the important category since our Top States study began in 2007.
It is not that Hawaii isn’t still a paradise. But even in a paradise, working families need child care.
While licensed child-care facilities are readily available in Hawaii, they are prohibitively expensive. According to Child Care Aware of America, child care in Hawaii costs 18% of the median income for a married couple. That is the most expensive in the country, and nearly twice the national average.
Multiple studies have linked quality child care and preschool to economic competitiveness.
In 2022, the Hawaii legislature approved $200 million in spending for new prekindergarten classrooms, part of a broader goal championed by Lt. Gov. Sylvia Luke to offer universal pre-K for three- and four-year-olds in the state by 2032.
A family walks on the beach together during sunset in Kauai, Hawaii.
Fly View Productions | E+ | Getty Images
“Access to preschool is a social justice issue for Hawaii,” Luke said in a statement at the time. “Children who have attended high-quality preschool or child-care programs are much better prepared for success in kindergarten, but not every family has access to early learning programs.”
The plan was to build 80 new classrooms by this August, with ambitious annual goals after that. But according to a website for the program run by Luke’s office, the program is already falling short of its goals. Two years after the bill was passed, only about half the money has been spent. Just 13 classrooms have been built, with another 50 under construction. The physical facilities are just part of the battle. Hawaii also faces a serious shortage of child-care workers.
An economy struggling to rebound
Put it all together, and it leads to America’s second-worst economy, according to the Top States study, after Mississippi. It is little surprise that no major companies are headquartered there. Economic growth was modest last year as the state struggled to recover from the wildfires, and job growth was meager at best.
In their most recent quarterly economic outlook, published in June, forecasters with the state’s Department of Business, Economic Development and Tourism predicted that tourism will end the year flat following a 4% drop in the first four months of the year, largely due to the wildfires.
They do expect visitor traffic to bounce back next year, and to continue growing — albeit at more modest levels — through 2026.
But in America’s Bottom State for Business, they have learned the hard way that Mother Nature can have other ideas.
Hawaii
The Places Visitors Love Most In Hawaii Just Hit Their Limit
If you’ve driven Hana Highway recently, as we have, tried to wedge your rental car onto the shoulder at Honolua Bay, inched along North Shore behind an hours-long nonstop line of brake lights, or followed a social media pin taking you to Hoopii Falls, Hawaii just put those exact places into specific future plans.
The state updated plans naming specific beaches, roads, trails, and bays where visitor pressure is highest and outlining what officials say could change at each. The first round of these (DMAPs) leaned heavily on broader goals and community meetings. The latest version, however, now lists the individual sites and attaches proposed actions. These are among the most in-demand places people build into their trips, not some policy abstractions.
Before assuming your next trip will look dramatically different, one basic reality is worth noting. The Hawaii Tourism Authority does not manage the roads, trails, bays, or neighborhoods in question, so the counties, DLNR, Hawaiian Home Lands, and private landowners will be needed to carry out most of what has just been described. In almost every case, the first year at least is focused on more studies, coordination, and setting up of what might come next.
Maui: Hana and Honolua finally get specific plans.
Maui’s plan centers squarely on the iconic Hana Highway, with six of the island’s nine site-specific actions targeting that single corridor.
The ideas are relatively straightforward. Paid community stewards at high-traffic stops such as Keanae Peninsula, a first-of-its-kind Hawaii tour guide certification program requiring culturally accurate mo’olelo (storytelling), safety guidance, and place-based knowledge instead of loosely scripted commentary, together with clearer signage identifying safe and legal pullouts while reminding drivers to let residents pass instead of backing up traffic for visitor photo opportunities.
At Bamboo Forest off Hana Highway, the plan addresses repeated trespassing onto private land. There have been 35 rescues there over the past decade, most requiring use of emergency helicopters. The proposal calls for signage clearly indicating no access. But because that land is privately owned, any real restriction there depends on the owner’s full cooperation.
Honolua Bay carries perhaps the boldest concept of all in the statewide package of suggested changes, including a reservation and shuttle system to eliminate illegal roadside parking, a cultural trail staffed by stewards before visitors ever reach the water, and water stewards who will be paddling out to orient snorkel boat passengers. No procurement process has started, and no shuttle contract exists, so the idea remains on paper for now. Kaupo, where a recently paved road has attracted more traffic and complaints, would also get sensor-linked warning signs at blind hills to focus on driving safety.
Big Island: Kealakekua Bay may see closings.
Kealakekua Bay is the main headline site here, as might be expected. The draft introduces the possibility of “rest days” during coral spawning or other sensitive periods, coordinated by the DLNR, when the bay would be closed to visitors. It is still a concept and would require coordination beyond HTA.
At Keaukaha near Hilo, cruise ship impacts drive the conversation ideas, and the community has pushed for a permanent role in shaping how visitor flow is handled around the port. A steward program piloted in 2023 is now being formalized rather than remaining as a short-term experiment.
South Point, or Ka Lae, sits on Hawaiian Home Lands, so the state’s role here is to support the Department of Hawaiian Home Lands’ existing plan rather than create a new one from scratch. Hilo itself is described as needing more visitor activity even as other Big Island sites seek to manage crowding.


Oahu: North Shore, pillboxes, and parking reality.
On Oahu, it’s the iconic North Shore that anchors the plan. Five sequenced actions are listed, but the first year focuses on studies, coordination, and groundwork.
There is no shuttle system scheduled for immediate rollout and no reservation platform ready to launch. During the public webinar, officials said any fees would be site-specific and pointed to the extremely limited parking infrastructure as a major constraint.
Lanikai Pillboxes and Maili Pillbox are cited as trails that have seen steep increases in use due to social media exposure. Lanikai already has daytime parking restrictions on residential streets between 10 am and 4 pm, and Maili has experienced a recent fatality. The plan for Lanikai is to evaluate managed access, while for Maili, it begins with determining who is responsible for the trail and what authority exists in order to manage it.
Downtown Honolulu appears in the draft as a future walkable corridor linking Iolani Palace, Honolulu Hale, and nearby historic sites and shops.
Kauai: this waterfall became a neighborhood fight.
Hoopii Falls in Kapaa has become one of the most tense sites in the statewide plans. What was once a local waterfall became a high-traffic destination after intense social media exposure. The trail crosses private, lease, and state lands and is not formally maintained, and residents have placed rocks and tree stumps at neighborhood access points to slow or block visitor flow. The plan’s near-term focus is to gather more data and bring landowners together to clarify jurisdiction and what can legally be done before any formal access system is devised.
The Kapaa Crawl along Kuhio Highway is listed as a priority, but the proposed response, which is a shuttle and visitor hub concept centered on Coconut Marketplace, has no funding, no operator, and no timeline.
Kokee and Waimea Canyon are also included. Two of four proposed actions are already deferred beyond the first funding year, and the near-term steps focus has moved to installing visitor counters and studying whether a reservation system would be feasible.
What changes on your next trip.
Across all four islands, social media is repeatedly cited as a significant accelerant, turning lesser-known spots into must-see stops almost overnight. And in that regard, there is no end in sight.
There are no additional statewide fees attached to these newly identified sites, no disclosed budgets for even the most ambitious concepts, and HTA does not gain or lose any new enforcement authority through these drafts.
If you are visiting in the coming months, you are unlikely to encounter reservation systems at Honolua Bay, formalized rest-day closures at Kealakekua, shuttles operating on the North Shore, or state-managed access changes at Ho’opi’i. Most of what is described for year one is groundwork.
You can review the full island-by-island drafts here: https://www.hawaiitourismauthority.org/what-we-do/destination-management-action-plans/
Do these plans go far enough or too far at the sites you know best? Get Breaking Hawaii Travel News
Hawaii
Hawaii County Surf Forecast for March 04, 2026 | Big Island Now
Forecast for Big Island Windward and Southeast
| Shores | Tonight | Wednesday | ||
|---|---|---|---|---|
| Surf | Surf | |||
| PM | AM | AM | PM | |
| North Facing | 2-4 | 2-4 | 2-4 | 2-4 |
| East Facing | 3-5 | 4-6 | 4-6 | 5-7 |
| South Facing | 1-3 | 1-3 | 1-3 | 1-3 |
| Weather | Mostly cloudy. Numerous showers. | ||||||
|---|---|---|---|---|---|---|---|
| Low Temperature | In the upper 60s. | ||||||
| Winds | East winds 5 to 10 mph. | ||||||
|
|||||||
| Weather | Partly sunny. Numerous showers. | |||||
|---|---|---|---|---|---|---|
| High Temperature | In the upper 70s. | |||||
| Winds | East winds 10 to 15 mph. | |||||
|
||||||
| Sunrise | 6:37 AM HST. | |||||
| Sunset | 6:27 PM HST. | |||||
Forecast for Big Island Leeward
| Shores | Tonight | Wednesday | ||
|---|---|---|---|---|
| Surf | Surf | |||
| PM | AM | AM | PM | |
| West Facing | 2-4 | 2-4 | 2-4 | 1-3 |
| South Facing | 1-3 | 1-3 | 1-3 | 1-3 |
| Weather | Mostly sunny until 6 PM, then mostly cloudy. Hazy. |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Low Temperature | In the upper 60s. | ||||||||||
| Winds | West winds around 5 mph early in the afternoon, becoming light and variable. |
||||||||||
|
|||||||||||
| Weather | Partly sunny. Hazy. | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| High Temperature | In the mid 80s. | ||||||||
| Winds | Light and variable winds, becoming west around 5 mph in the afternoon. |
||||||||
|
|||||||||
| Sunrise | 6:41 AM HST. | ||||||||
| Sunset | 6:31 PM HST. | ||||||||
The current moderate northwest swell will continue a gradual decline through Thursday. A small west-northwest swell will arrive on Friday and hold through the weekend, followed by a small north-northwest swell early next week. Choppy east shore surf will build to near seasonal average by Wednesday as trade winds strengthen over and east of the islands. Little change is expected along east facing shores through the weekend, followed by a possible decline early next week if winds veer southerly. Surf along south facing shores will remain small to tiny through the weekend, and some islands may an increase in choppy surf if southerly winds develop early next week.
NORTH EAST
am
pm
Surf: Minimal (ankle high or less) surf.
Conditions: Semi choppy with ESE winds 5-10mph in the morning increasing to 10-15mph in the afternoon.
NORTH WEST
am
pm
Surf: Minimal (ankle high or less) surf.
Conditions: Clean in the early morning with ESE winds less than 5mph. Bumpy/semi bumpy conditions move in during the morning hours with the winds shifting W 5-10mph.
WEST
am
pm
Surf: Minimal (ankle high or less) surf.
Conditions: Semi glassy in the morning with N winds less than 5mph. Bumpy/semi bumpy conditions for the afternoon with the winds shifting WNW 5-10mph.
SOUTH EAST
am
pm
Surf: Minimal (ankle high or less) surf.
Conditions: Light sideshore texture in the morning with NE winds 10-15mph. This becomes Sideshore texture/chop for the afternoon.
Data Courtesy of NOAA.gov and SwellInfo.com
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