They're in Hawaii, but there is a close-up on a Tahitian dancer's rear shaking it in a figure 8 fashion. That is the Tahitian dance Tamure, and can be corroborated by the dancers all wearing the ancient Tahiti dancers' costume, made of long "grass" skirts and complete with elaborate hats. When they are finished, Max gets up and in admiration sways his arms, performing the Hula. The hula indeed involves motions of the arms, and is the national dance of Hawaii, whereas the Tamure is that of Tahiti and has no arms swaying. Classic Hollywood mix-up: Tahitian dancers from the Polynesian Cultural Center in Honolulu were regularly showcased in Hawaii-themed 70s TV shows, and never introduced as being from Tahiti. (Hawaiian hula dancers do not shake their rear in a figure 8, they merely sway their arms but their hips barely move.)
There are obvious stunt doubles for the two agents during the fight at the croquet club.