Honolulu hosts the United States’ famous Waikiki New Year’s Eve fireworks tradition.
Waikiki is a neighborhood and beach district of Honolulu on the island of Oahu. Its waterfront hotels, beach parks, and surrounding businesses make it a major visitor destination, and New Year’s Eve celebrations commonly culminate in fireworks visible over the Waikiki shoreline.
Honolulu is the capital of Hawaii and lies in the Hawaii–Aleutian Time Zone. That means its midnight arrives later than midnight in the continental United States, even though celebrations there may already have been shown in international broadcasts from earlier time zones. The local setting combines ocean views, resort activity, and public beach gatherings.
The answer is Honolulu rather than Waikiki because Waikiki is the district hosting the waterfront event, while Honolulu is the city. Hawaii has other island communities and holiday displays, but Waikiki is the internationally familiar Honolulu setting.