Time-shares jumped 41 percent in 1995 and attracted 292,000 visitors, said the report by the American Resort Development Association, based in Washington, D.C.
Consumers at the time-shares spent $370 million, adding $20.8 million to state revenues, the report said.
Kauai claims 42 percent of the time-shares with nearly 1,381 units.
Oahu has 664 time-shares. Maui County has 644 and the Big Island has 572.
The rapid rise in time-share sales is due in large part to an increase number of high quality time-share projects in the state. Several "name-brand" time-share companies on the islands include Marriott, Embassy Suites, Disney and the Hilton. the report said.
Californians dominate the time-share market, making up 52 percent of the time-share owners in Hawaii, according to the report.
The ARDA also chimed in on the proposed state tax on time-shares. Lawmakers say the tax, similar to the state's hotel room tax, could mean an additional $20 million to $30 million dollars a year in revenues and could help lawmakers balance the state's two-year budget.
But the ARDA said the proposal raises constitutional questions. It says the extra tax would be unfair and detrimental and would represent a new tax over and above the property tax homeowners already pay.