HAWAII, THE ALOHA STATE
Discovered by Polynesian settlers between the 3rd and 7th centuries A.D. and later by British Captain James Cook in 1778.

Hawai‘i became the 50th state on August 21, 1959.

Honolulu, the capital city, is on the Island of O‘ahu.

HAWAII'S EIGHT MAJOR ISLANDS
Described by Mark Twain as "the loveliest fleet of islands that lies anchored in any ocean," Hawai‘i is a string of 137 islands encompassing a land area of 6,422.6 square miles in the north central Pacific Ocean about 2,400 miles from the west coast of the continental United States. Stretching from northwest to southeast, the major islands are: Ni‘ihau, Kaua‘i, O‘ahu, Moloka‘i, Lana‘i, Kaho‘olawe, Maui and Hawai‘i.

Hawaii's climate features mild temperatures, moderate humidity and cooling trade winds.

State Flower: Yellow hibiscus (pua ma‘o hau hele; Hibiscus brackenridgei)

State Bird: Hawaiian goose (nene; Branta sandvicensis)

State Tree: Candlenut (kukui; Aleurites moluccana)

State Song: Hawai‘i Pono‘i

State Seal and Motto: Ua mau ke ea o ka ‘aina i ka pono (The life of the land is perpetuated in righteousness)

HAWAII'S PEOPLE

State resident population (2000)	1,211,537
City & County of Honolulu (2000)	876,156
Hawai‘i County (2000)	148,677
Maui County (2000)	128,241
Maui Island	117,644
Moloka‘i	7,404
Lana‘i	3,193
Kaua‘i County (2000)	58,436
Kaua‘i Island	58,303
Ni‘ihau	160
De facto population (2000): (Includes all persons physically present, e.g., military and visitors, but excludes residents temporarily absent.)	1,334,023

Number of households (2000): 403,240 with an average of 2.92 persons per household

The population is 50% male and 50% female.

Median age (2000): 36.2 years

Age breakdown (2000): Under 5 (6.5%); 5-19 (20.6); 20-44 (36.8); 45-64 (22.9); 65+ (13.3)

Ethnicity (2000): Hawaiian/Part Hawaiian (22.1%); Caucasian (20.5); Japanese (18.3); Filipino (12.3); Chinese (4.1)

Marriages (1999): 23,067 (60% were non-residents and 44.2% interracial)

Divorces and annulments (1999): 4,620

Life expectancy (1990): Males, 75.9 years; Females, 82.0 years

Education (2000): 87.4% of the population 25 years and older are high school graduates; 26% has a bachelor's or advanced degree.

HAWAII'S GOVERNMENT
Governor: Linda Lingle   Lieutenant Governor: James Aiona (www.hawaii.gov)

Legislature: 51-member House and 25-member Senate which meets annually

There are four counties with mayors and councils:

City & County of Honolulu (the Island of O‘ahu and the Northwest Hawaiian Islands excluding Midway)

Hawai‘i County (Hawai‘i Island)

Maui County (Islands of Maui, Moloka‘i, Lana‘i and Kaho‘olawe)

Kaua‘i County (Islands of Kaua‘i and Ni‘ihau)

The two levels of government in Hawai'i are state and county. Counties perform most services usually assigned to cities and towns (fire protection, police, refuse collection, construction and maintenance of streets and other public works). There is only one school district which is administered by the State.

Congressional members:
U.S. Senators: Daniel K. Inouye and Daniel K. Akaka

U.S. Representatives: Neil Abercrombie and Ed Case

HAWAII'S ECONOMY
Gross State Product (2000): $ 39.1 billion

Major export industries:
Visitor expenditures (2000): $10.9 billion Federal defense spending (2000): $4.4 billion Sugar and pineapple (1999): $276.1 million

The State of Hawai‘i is committed to diversifying the economy. Industries encouraged are science and technology, film and television production, sports, ocean research and development, health and education tourism, diversified agriculture and floral and specialty food products.

TOURISM
Visitors staying overnight or longer (2000): 6,948,595

By country (2000): Mainland U.S., 4.1 million; Japan,1.8 million

Visitor expenditures (2000):   $10.9 billion

Average daily visitor expenditure (2000):   U.S. West, $146; U.S. East, $164; Japan, $222
 

The Hawai‘i Convention Center opened in 1998. It has hosted meetings as large as 30,000 and has a calendar of meetings scheduled to 2010.

The Hawai‘i Tourism Authority oversees the planning and marketing of tourism in Hawai‘i.

FEDERAL EXPENDITURES
Total federal expenditures (2000): $9.0 billion

Military personnel and dependents (2000): 78,346

Based in Hawai‘i, USPACOM, the U.S. Pacific Command, is geographically the largest of the U.S. unified service commands. It covers about 50% of the earth's surface from the U.S. West Coast to Africa's east coast and from the Arctic to the Antarctic.

AGRICULTURE
Once Hawai‘i's primary source of income, agriculture remains a significant contributor.

Value of crop and livestock sales (1999): $509.6 million

Major crops (1999): Sugar, $86.8 million; pineapple, $101.4 million; flower and nursery products, $75.4 million; macadamia nuts, $37.9 million; coffee, $21.0 million; milk, $31.2 million; cattle, $16.6 million; eggs, $10.8 million

Aquaculture farms statewide (1999): 100 small or medium-sized operations, often diversified. Overall value of aquaculture (1999): $18.1 million; value of shellfish production, $6.4 million; algae, $7.9 million

EXPORTS AND IMPORTS
One of the most successful trade zone programs in the United States, the Hawai‘i Foreign Trade Zone No. 9 in 2000 handled $3.31 billion worth of merchandise from 257 firms. Exports totaled $407,694,035.

RETAIL TRADE
Retail sales (2000): $17,453.9 million

Hawai‘i's retail establishments include discount outlet malls, big box outlets and national and international luxury and chain stores.

LABOR FORCE
Unemployment rate (2000):   4.3% O‘ahu (3.8); Hawai‘i (6.7); Maui (3.8); Moloka‘i (14.0); Lana‘i (3.5); Kaua‘i (6.5)

Civilian labor force (2000):   595,450

Composition of labor force (2000):   Male, 53%; Female, 47%

Civilian employment (2000):   569,900

Annual wages per private employee (1999):   $28,135

In 1999, 9.8% of employed persons held multiple jobs.

Hawai‘i's economy is service-oriented with hotels and other service providers accounting for more than one-fourth of the jobs. About three in ten civilian workers are professional or managerial. Government and retailing account for half the number of employees.

Hawai‘i's workforce is skilled in Asian languages and business protocol.

LABOR-MANAGEMENT RELATIONS
Minimum wage:   $5.25 per hour (will increase to $5.75 per hour in January 2002)

Principal unions:   AFL-CIO, Teamsters, International Longshoremen's and Warehousemen's Union (ILWU)

Largest memberships:   Hawai‘i Government Employees Association, ILWU, and Teamsters.

Labor union membership (1999):   114,500

In 1999, 23.2% of those employed were union members.

FINANCIAL INSTITUTIONS AND INVESTMENTS
Banks (1999):   6 with 187 branches

Savings and loan associations (1999):   3 with 97 branches

Publicly traded Hawai‘i companies:   23

All major U.S. securities firms are represented.

BUSINESS FIRMS
Domestic corporations on record (2000):   37,038; non-Hawai‘i corporations, 8,323; partnerships, 7,329

Business starts (1999):   535

Business bankruptcy filings (2000):   63

Job count by industry (2000):   Service (33%); Government (21%); Retail (21%); Manufacturing (3%)

Most of Hawai‘i's businesses are small. 58% have fewer than five employees and 95% have fewer than 50 employees.

The Hawai‘i Small Business Regulatory Flexibility Act was passed in 1998 to ease the process of creating and operating a business.

COMMUNICATIONS
Daily newspapers (1999):   6 English language papers
Radio stations (2000):   76
Television stations (2000):   25

There are also foreign language newspapers, radio stations and television stations.

Cable TV companies (1999):   2 with 358,723 subscribers

Cellular telephone companies (2000):   10

In 2000, 52.4% of Hawai‘i's households had computers and 43.0% had Internet access.

Hawai‘i has high data rate links with more than 30 state-of-the-art telecommunications satellites. 29,000 miles of undersea fiber optic cables provide 140,000 voice equivalent circuits facilitating simultaneous voice, data and image transmissions to the continental United States, Canada and Asia along with a new "supercarrier" cable providing an additional 130,000 circuits. Thirty dedicated T-1s link to every major business center in Asia and Europe. In 1998, 100% of local telephone lines were converted from analog to digital switching. In 2001, a new transpacific cable linking Australia to the U.S. mainland via Hawai‘i has provided increased bandwidth to the islands.

Beginning with the Telecommunications Act of 1996, the State of Hawai‘i launched a program of deregulation to encourage increased competition among companies.

EDUCATION
The University of Hawai‘i system had 42,799 students enrolled in 2000. In 2000, it awarded 3,115 bachelor's degrees, 1,040 master's degrees and 152 doctoral degrees. The three private universities had an enrollment of 13,539 students.

Institutions with an international focus are the East-West Center, the Asia-Pacific Center for Security Studies, the Japan-America Institute of Management Science, Hawai‘i Pacific University, Chaminade University, Kansai Gaidai Hawai‘i College and the University of Hawai‘i.

Hawai‘i's statewide public school system had an enrollment in 2000 of 183,520 students in grades K-12. There are also 132 private schools. Enrollment in private schools was 36,226 in 1999.

TRANSPORTATION
Overseas airline passenger arrivals (1999):   7,699,676; interisland airline passengers:   10,173,069

Licensed drivers (2000):   769,383

Motor vehicle registrations (2000):   941,242

Streets and highways (1998):   4,217 miles

The availability of public transportation varies from island to island.

Commercial airports (1999):   9; general aviation, military or semiprivate airports:   14; heliports:   5; active pilots (1996):   2,561; active civil aircraft in general aviation:   364

Harbors:   7 deep-draft and 2 medium-draft harbors on the five major islands in the State

There is barge service between islands.

INCOME AND COST OF LIVING
Per capita personal income (1999):   $27,533

Median annual income for families (1999):   $66,402. Hawai‘i was ranked seventh among the fifty states and District of Columbia.

The cost of living for a family of four has been estimated to be 27% higher than the U.S. average for a comparable standard of living.

GOVERNMENT FINANCE AND TAXATION
State revenue receipts in 1998 totaled nearly $6.7 billion, chiefly from taxes (47%); inter-governmental revenue (17%) and insurance trust (19%). The general excise and use tax ($1.4 billion) and individual income tax ($1.08 billion) are the major sources of tax revenue.

The four counties establish real property tax rates and assess and collect these taxes. Except for licenses, permits and fees, other tax collections are the responsibility of the State which operates a centralized tax system. Hawai‘i has no personal property or inventory taxes.

There is a general excise tax (GET) of 4% that is applied to retail sale of goods and services.

The corporate tax rate is 4.4 percent of income up to $25,000, 5.4 percent of taxable income up to $100,000 and 6.4 percent of income exceeding $100,000. The capital gains tax rate is 4 percent for corporations.

HOUSING
Total housing units (2000):   460,542

State median resale value (2000):   Single family, $265,000; condominium, $139,000

Average monthly mortgage (2000):   $1,863

Average monthly rent (2000):   $813

Housing is expensive in Hawai‘i, due to limited availability and the high price of land. Mobile homes are not found in Hawai‘i as zoning and building code regulations are stringent.

PUBLIC UTILITIES
Electricity sales (2000):   9.7 billion kilowatt-hours

Electric utilities:   Hawai‘i Electric Light Company (Hawai‘i); Hawaiian Electric Co. (O‘ahu); Kaua‘i Electric (Kaua‘i); Maui Electric Co. (Maui, Moloka‘i and Lana‘i)

Gas sales (2000):   34.8 million therms of utility gas

Gas utility:   The Gas Company

ENERGY RESOURCES
Imported petroleum (2000):   about 90% of energy needs.

Other sources of energy:   Solar, geothermal, garbage power, bagasse (waste from sugarcane) and wood chips from trees, wind power, water-driven turbines and coal.

Given its nearly total dependence on oil imports, Hawai‘i's top energy priorities are alternate energy and conservation.

RESEARCH, SCIENCE AND TECHNOLOGY
Research and development spending by the federal government (1998): $160.8 million

Hawai‘i supports science and technology research and development through a multitude of agencies. Key among these agencies are the High Technology Development Corporation, the Maui Research & Technology Center (home of the Maui High Performance Computing Center), the Natural Energy Laboratory of Hawai‘i Authority (an ocean science and technology park utilizing deep ocean water technology), Center of Excellence in Ocean Sciences (CEROS), Pacific Center for High Technology Research, Hawai‘i Natural Energy Institute and the Department of Business, Economic Development & Tourism.

The University of Hawai‘i fosters research in all aspects of science and technology with international recognition in areas such as astronomy, ocean sciences, geology and biomedical research.

Notably, astronomy plays a key role in Hawai‘i's commitment to scientific research. The exceptionally clear skies at the summits of Hawai‘i Island's Mauna Kea and Maui's Haleakala offer optimum conditions for astronomical observations. On Mauna Kea alone, 13 major facilities representing the cooperation of ten countries are in operation. The Subaru Telescope Facility, the newest observatory, represents a new class of revolutionary telescopes. Supported by a dedicated supercomputer in Hilo, its ultra-thin and light mirror permits extremely high accuracy in imaging celestial objects.

In the area of biotechnology, a team lead by Professor Ryuzo Yanagimachi of the University of Hawai‘i's School of Medicine developed the "Honolulu Cloning Technique" producing fifty identical mice. In 2000, the Hawai‘i Institute of Biogenesis, a $4.9 million facility, opened to support this research.

HAWAI‘I'S BUSINESS INCENTIVES
Hawai‘i has only two levels of government taxation:   state and local

No personal property tax

No tax on inventory, furniture, equipment or machinery

Credit granted against taxes paid on the purchase of capital goods, machinery, and equipment

No state tax on goods manufactured for export

No stock transfer tax (all security exchange transactions are exempt from general excise tax, as an incentive to financial institutions)

No unincorporated business tax

Banks and financial institutions pay only one business tax

Manufactured products or those produced for export are exempt from the general excise tax, including custom computer software

The corporate tax rate is 4.4 percent of income up to $25,000, 5.4 percent of taxable income up to $100,000 and 6.4 percent of income exceeding $100,000. The capital gains tax rate is 4 percent for corporations.

The Immigrant Investor Program and the Enterprise Zone Program are available for qualified applicants.

Hawai‘i's Department of Labor and Industrial Relations administers the Employment Training Fund which provides industry or employer-specific training programs in high growth occupational areas.

The Technology Omnibus Act was signed into law in 2000 and provides tax incentives for high technology businesses.