Based on what I've read in the article, I don't think it's racism. I think it's celebrating another culture, however misguided their perception of the culture may be. I live in Hawaii and the trappings of luaus and hula girl costumes are not culturally accurate almost at all. But I don't think most hawaiians or locals are bothered by it. It's tourist trappings but it's meant in fun.

As a commenter mentioned, what about St. Patricks day? That's a Irish/Catholic holiday, but in the US it's an excuse to get blitzed on green beer, wear "Kiss me I'm Irish" shirts, and eat corned beef with potatoes and cabbage. Is that culturally insensitive? Is it a celebration, even though it is not an accurate representation of either the Irish or Catholic cultures?

The list goes on. I am very familiar with Polynesian history and while the white man has certainly done them wrong in the past, there is a line where people are just going too far with their political correctness.