Economy

The tourist industry and government are the mainstays of Hawaii's economy. Agriculture, at one time the leader of the economy, has undergone a significant relative decline. More than half of all nonagricultural employment is in the service industries and wholesale and retail trade. Manufacturing, construction, finance, insurance, and real estate are also significant parts of the economy.

Hawaii's mild climate and natural beauty attract about six million tourists a year. Oahu is the island most visited: Honolulu and the resort district of Waikiki, Pearl Harbor, and the Polynesian Cultural Center attract most of the visitors. Maui, Molokai, Kauai, Lanai, and Hawaii contain resorts and other tourist facilities that are also popular. Virtually no tourists visit the islands of Niihau and Kahoolawe. Niihau is privately owned by a family operating a cattle-and-sheep ranch. Kahoolawe is uninhabited and is used as a military firing range.

Hawaii occupies a strategic location in the North Pacific Ocean, and national defense plays a major role in the economy of the state. Military installations are numerous; most are on the island of Oahu, primarily in the Pearl Harbor area, just west of Honolulu. In addition to the military personnel stationed in Hawaii, there are large numbers of civilian government workers; more than one-fifth of the state's civilian labor force is employed by federal, state, and local government.

was Hawaii's leading economic activity from the 19th century until about the time of World War II. Nearly half of the state is in farms, ranches, and plantations, but much of this land is used only for grazing or is too dry to be productive. Crops are grown on only about 8 per cent of the land and account for roughly 80 per cent of the state's farm income. Sugarcane is overwhelmingly the chief commercial crop; pineapples rank second. Both are grown on large, mechanized plantations.

Other commercial crops include coffee, macadamia nuts, and cut flowers and nursery plants. Many fruits and vegetables are grown on small farms for local consumption. Beef cattle, raised mainly on large ranches, and milk, eggs, hogs, and broilers are also produced.

is a relatively small industry in Hawaii, mainly because of the islands' remote location, lack of industrial resources, and rather small local market. Only in the Honolulu area is there substantial employment in manufacturing.

The processing of agricultural products has long been Hawaii's chief manufacturing activity. It consists primarily of processing sugarcane and pineapples, meats, and dairy products. Also significant is the making of clothing, primarily women's clothing; petroleum products; and fabricated metal items. Printing and the building and repairing of ships and boats are also important economic activities.

Airplanes and ships provide transportation between the islands of Hawaii, to and from the United States mainland, and abroad. Virtually all passenger transit is by air. Honolulu International is the busiest of nearly a dozen commercial airports. Port facilities at Honolulu handle the bulk of the state's waterborne commerce.

Motor vehicles provide nearly all land transportation on the islands. The highway system consists mostly of paved roads, primarily on the islands of Hawaii, Oahu, Maui, and Kauai. The only railroad is a six-mile (10-km) tourist line on Maui.