Hawaii Economy

 

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The history of Hawaii can be traced through a succession of dominating industries: sandalwood, whaling, sugarcane, pineapple, military, tourism and education. Since Hawaii statehood in 1959, tourism has been the largest industry in the state, contributing 24.3% of the Gross State Product in 1997. New efforts are underway to diversify the economy. The total gross state output for the state of Hawaii in 2003 was US$47 billion; per capita. Income for the state’s residents was US$30,441.

Industrial exports from Hawaii include apparel and food processing. These industries play a small role in the Hawaii economy, however, due to the considerable shipping distance to the ports and population centers of the West Coast of the United States. Food exports include pineapple, livestock, coffee, macadamia nuts and cane sugar. Agricultural sales for 2002, according to the Hawaii Agricultural Statistics Service, were US$370.9 million from diversified agriculture, US$64.3 million from sugarcane and US$100.6 million from pineapple.

The state is known for its relatively high per capita tax burden. In the years 2002 and 2003, the state of Hawaii residents had the highest state tax per capita at US$2,757 and US$2,838, respectively. This rate can be explained partly by the fact that services such as health care and social services and education are all rendered at the state of Hawaii level, as opposed to the municipal level in all other states.

Millions of tourists contribute to the state of Hawaii by paying the general excise tax and hotel room tax; thus not all the taxes collected come directly from residents. Business leaders, however, have often considered the state’s tax burden as being too high, contributing to both higher prices and the perception of an unfriendly business climate.

 

 

 

 

 

 

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