We did a luau for our spring carnival last year. Try Rhode Island Novelty for decorations and hula skirts. They were alot cheaper than Oriental (although the latest Oriental catalog has a few luau closeouts)
Also, check ebay as they have alot of decorations that you would find in these catalogs at huge discounts.
As far as games, we had a limbo line, "beach" volleyball in the playground area (we have crushed rubber footing), face painting, carnival type games and a dunk tank. We are very lucky that one of our volunteer moms is a professional party planner so she has access to a variety of sources and many of the decorations we used were hers. Also, we borrowed large potted tropical plants/trees from a local landscaping business to dress things up as we are in the northeast and pine trees don't look very tropical.
Anything where the students get to do something to the principal is always a hit. Dunk tank, pie throwing etc.

Hope this helps!

I just bought tons of decorations for a luau themed b'day party from Oriental Trading and didn't spend very much. They have parrots, flowers, hula girls and so on. If you have corners to fill you can make palm trees out of art paper. Tissue paper flowers are easy to make and cheap. You can have a kiddy pool full of sand for a treasure hunt (smaller kids). Have a hula hoop contest...keep this running through the night as to who can do it the longest and the winner is announced at the end of the carnival. Face painting or tattoos are always a hit...or around here the "beach thing" to do is to get your hair braided. Maybe braid it and add a flower. We did a karaoke jail (you get put in jail and to get out you have to sing....major hit!) Putting green with indoor/outdoor carpet and a cup for the hole.

Just think of all the games you could play outside and tweek them to bring inside! :cool:

For the incentive, what about having the Principal dress up in hula skirt and coconut bra (it is a guy isn't it?) and dance/sing to a Hawaiian song??? Yikes!

The teachers got very creative with our incentives this year. The top students got to do a "Trading Spaces" type makeover for the principal's office and an extreme makeover of the Principal and Vice Principal. The Vice Principal's was a nice makeover, while the Principal's was kind of wild.

Does anyone have any good ideas for reasonably priced decorations and fun games for a beach party/luau theme for a carnival inside?

Also looking for a challenge for students to sell most raffle tickets?

We've done prizes such as game tickets, concession items and last year - most tickets sold got to spray paint the principal's hair green! This went over great!!

Any ideas would be appreciated!!!