It's unclear. Two of my sources state different locations.

"Developed by Hawaiian islanders in the 15th century"

http://www.surfing-art.com/surfing_history.htm

Wikipedia states...

"The art of surfing was first observed by Europeans in 1767, by the crewmembers of the Dolphin at Tahiti; however, surfing was a central part of ancient Polynesian culture and predates European contact"

http://en.wikipedia.org/wiki/History_of_surfing
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