Although there are a few spots you can see some fish around Waikiki, the best place to snorkel in Honolulu is actually just a little east of the city: Hanauma Bay. Hanauma Bay is a volcanic crater that the ocean filled with water eons ago, making a tight circular bay. There is a reef located in the middle of Hanauma Bay that keeps the roughest of the waves out of the protected cove area near the shoreline. The coral isn't very pretty at Hanauma Bay, at least not inside the reef, because it is an extinct reef. However, the fish are dazzling in their variety and color. You can see more types of fish in Hanauma Bay in a few hours than you will see in days at many other snorkeling sites. If you want to go to Hanauma Bay, go early to make sure you can get parking. There are also buses and shuttles that will take you from Waikiki. There is snorkel equipment and food available at the Bay.
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Definentely Kauai, and Hideaway Beach in Princeville is AMAZING!!! I have beautiful pictures we took while I was underwater!