When I think about Hawaii, beautiful beaches and warm sunsets come to mind. But there’s much more to the islands than just scenery.
The top industries in Hawaii today include tourism, services, agriculture, fishing, education, and energy. These sectors support local jobs and shape daily life in the state.
Tourism has long been the largest part of Hawaii’s economy. Millions of visitors come each year to experience the unique culture and environment.
Agriculture and fishing have deep roots in Hawaii. Sectors like energy and education are also important as Hawaii looks to diversify its economy and grow in new directions.
Tourism Sector Overview
Tourism is the top industry in Hawaii. It shapes the state’s economy and influences daily life.
It fuels many jobs and supports local businesses. Tourism also affects the cost of living across the islands.
Impact of Tourism on Hawaii’s Economy
Tourism makes up about 21% of Hawaii’s entire economy. Visitor spending alone brought in more than $16 billion in recent years.
This money supports construction, retail, restaurants, and transportation jobs. Millions of tourists visit the islands every year, and their spending helps pay wages and supports public services.
Tourism also affects the cost of living. High demand can make housing and goods more expensive.
Money from tourists helps fund schools, roads, and other community needs. According to the WorldAtlas article on Hawaii’s industries, tourism influences nearly every aspect of the local economy.
Hospitality and Accommodation Services
Hotels, resorts, and vacation rentals are everywhere in Hawaii. The hospitality sector is the biggest employer, offering jobs at every skill level.
Guests expect friendly service. The industry invests in training staff to make sure everyone feels welcome.
Here’s how many rely on the hospitality sector:
- Hotels & Resorts: Employ thousands of people
- Restaurants: From fast food to fine dining, serving locals and tourists
- Transportation: Rental cars, shuttles, taxis, and tour companies
Many hotels and resorts are well-known for excellent guest experiences. This keeps travelers coming back and helps Hawaii stay competitive.
Sustainable Tourism Initiatives
Sustainability has become much more important for Hawaii’s tourism industry. State and local leaders work on ways to protect natural resources and reduce negative impacts.
Some hotels offer water-saving programs or promote reef-safe sunscreen to help preserve coral reefs. There are also efforts to educate visitors about Hawaiian culture and the environment.
Community-led tours and eco-friendly activities teach guests how to respect the islands. The DBEDT sustainable tourism overview highlights new projects that encourage low-impact travel and support local businesses.
Many people now see sustainable tourism as key to balancing economic growth with preserving Hawaii’s unique way of life.
Government and Defense Industries
Government and defense are at the core of Hawaii’s economy. They bring billions of dollars in spending and thousands of jobs to families across the islands.
The U.S. military and key defense operations impact public services, infrastructure, and local businesses.
Hawaii’s Military Presence
The military is a regular part of daily life in Hawaii. Major military bases like Pearl Harbor, Hickam Air Force Base, and Schofield Barracks bring in active duty personnel, their families, and civilian workers.
The Department of Defense spends about $13 billion a year in the state. Defense is Hawaii’s second-largest economic sector after tourism.
Military spending creates jobs and supports local businesses. The military also funds public schools and hospitals in nearby communities.
Defense activities shape traffic, community events, and the job market. Many families depend on steady income from military jobs or contracts.
Pearl Harbor Naval Shipyard Operations
Pearl Harbor Naval Shipyard is one of the busiest naval shipyards in the United States. The shipyard repairs and upgrades submarines, destroyers, and other Navy ships.
Engineers, mechanics, welders, technicians, and support staff work at the shipyard. The Navy provides stable, long-term jobs with good wages to thousands of local residents.
These workers help keep the U.S. Pacific Fleet ready for any mission. The shipyard also offers apprenticeships and technical training.
The shipyard is vital to the local community. It boosts small businesses and supports both the public and private economy.
Role of the Defense Industry
The defense industry in Hawaii involves dozens of local companies. They provide goods and services, from technology upgrades to construction and facility maintenance.
Contracts often go to small businesses, increasing local job opportunities. The defense sector is the second largest contributor to Hawaii’s economy after tourism.
These jobs are stable and come with benefits, making them attractive to many people. Defense spending also funds research, cybersecurity, and disaster response initiatives.
Active duty military and veterans contribute to community life. They serve as volunteers and community leaders across the islands.
Construction and Real Estate
Construction and real estate are key parts of Hawaii’s economy. These industries create jobs and shape daily life.
Residential and Commercial Development
New residential and commercial projects are happening across Hawaii. Homes and apartments are in high demand, especially in urban areas such as Honolulu.
Affordable housing is a real concern for many residents. The government and private builders work together to add new units, but the pace can feel slow.
Hotels and retail buildings are often under construction or being renovated to serve both locals and tourists. Major efforts, like the proposed replacement for Aloha Stadium and the expansions in Kakaako, boost construction activity and create new jobs.
These projects are major drivers of economic growth. Labor shortages challenge many contractors, sometimes causing delays.
The cost of materials is rising, making some projects more expensive for developers and buyers.
Coastal Development Trends
Beachfront property in Hawaii is always in demand. Building close to the ocean comes with strict rules.
Zoning laws and environmental regulations shape how and where these properties get built. This helps prevent erosion and protects sensitive coastal ecosystems.
Developers use new materials and designs to stand up against hurricanes and rising sea levels. Many coastal communities invest in seawalls, elevated foundations, and native plant buffers to address flood risks and shoreline change.
These projects add to the cost of living, since homes near the water tend to be more expensive. Short-term vacation rentals are popular on the coast.
This boosts income for some homeowners but makes long-term housing harder to find for local families.
Real Estate Market Insights
The Hawaii real estate market is known for high demand and tight inventory. Houses, condos, and apartments in popular areas sell quickly and at high prices.
Both local buyers and international investors are interested in these properties. The real estate and rental sector is a significant part of Hawaii’s economy, contributing a large share of GDP.
Median home prices in many areas have risen, while rent for apartments has increased too. Wages have not kept pace, so the cost of living remains high for many families.
This puts pressure on policymakers to support affordable housing, tax breaks for first-time homebuyers, and programs aimed at renters.
Agriculture and Aquaculture
Farming and ocean resources play a key role in Hawaii’s economy. These fields provide jobs, supply local food, and export high-value products around the world.
Key Crops: Sugarcane and Macadamia Nuts
When I learn about Hawaii’s agriculture, sugarcane and macadamia nuts stand out. Sugarcane has a long history on the islands.
Sugarcane plantations shaped Hawaii for over a century. Commercial production has dropped in recent years.
Most sugarcane farms have closed, but its legacy remains in the land and culture. Macadamia nuts are now a major part of Hawaii’s modern farming.
The state produces thousands of tons every year. Macadamia nut farms are mostly on the Big Island.
Farmers harvest, process, and sell the nuts locally and around the world. Macadamia nuts appear in many food products, from chocolates to cooking oils.
With long growing seasons and good weather, Hawaii leads the way in high-quality macadamia nut farming.
| Crop | Primary Locations | Notable Products |
|---|---|---|
| Sugarcane | Historic Statewide | Sugar, Culture |
| Macadamia Nuts | Big Island | Nuts, Oils, Snacks |
Growth of Aquaculture
Aquaculture is growing quickly in Hawaii’s agriculture sector. In 2022, aquaculture sales reached a record $89.6 million.
This was a 12% increase from the previous year. Algae made up over half the total sales, while ornamental fish also contributed millions in revenue.
The industry covers fish, shellfish, and seaweed. Modern farms use tanks, ponds, and even ocean pens to grow a variety of products.
Aquaculture is now Hawaii’s second most valuable farm sector, behind seed crops. Many farms focus on eco-friendly and sustainable practices.
You can find details about the state’s aquaculture growth at the USDA Pacific Region Aquaculture Report.
Aquaculture supplies local seafood and supports exports, research, and jobs for island communities.
Renewable and Conventional Energy
Energy shapes life in Hawaii. The islands rely on both renewable energy and conventional fuels as the state moves toward a more sustainable future.
Geothermal and Other Renewable Sources
Hawaii leads a strong push for renewable energy. In 2024, renewable sources provided over one-third of the state’s electricity, with solar power making up most of it.
Wind, hydropower, and especially geothermal energy also play key roles. The Puna Geothermal Venture on the Big Island supplies steady power all year.
Geothermal keeps Hawaii’s energy mix diverse and reliable. Wind farms on Oahu and Maui, along with rooftop solar, spread clean energy across the islands.
Solar power makes up about 65% of Hawaii’s renewable electricity. This reduces pollution and supports local jobs.
Hawaii plans for all its energy to come from renewable sources by 2045. You can find more details about the renewable energy landscape at the U.S. Energy Information Administration.
Conventional Fuel Providers
Hawaii still uses conventional fuels for much of its energy, even as renewables grow. Two main suppliers, Par Hawaii and Island Energy Services, run oil refineries, storage, and distribution networks.
These companies provide gasoline, jet fuel, and diesel for cars, planes, and ships. Par Hawaii runs the state’s largest refinery, which produces much of the fuel used daily.
Island Energy Services supplies fuel to businesses, homes, and the military. These providers keep the islands running, especially when renewable supplies are low.
Their roles may change as Hawaii shifts to cleaner energy. More about Hawaii’s move away from fossil fuels is on the Hawaii State Energy Office website.
Healthcare and Social Services
Healthcare and social services employ many people in Hawaii. This sector serves both residents and millions of visitors, making it vital to daily life.
Healthcare System Overview
Healthcare is important in Hawaii, especially with a growing and aging population. Hospitals, clinics, and doctor’s offices provide care for basic and complex needs.
Large hospitals in Honolulu, Maui, and the Big Island anchor the system. Smaller clinics and health centers reach rural and neighbor island communities.
Healthcare and social assistance employ over 148,000 workers in Hawaii. Nurses, doctors, medical assistants, and administrative staff are the most common jobs.
Telehealth has grown in recent years and helps people in remote areas. Elder care and specialty services are expanding as more seniors need long-term care and home support.
Other Essential Services
Other essential services in Hawaii include social assistance programs. These programs help children, families, seniors, and people with disabilities.
Food support, counseling, child welfare, and job training are some examples. Social workers, case managers, and community health workers connect people with benefits and support.
Substance abuse counseling and mental health programs have become more available. Public health officials focus on prevention and recovery.
Community centers and nonprofit agencies offer many of these services, making them easier to access. This approach supports healthier families and stronger neighborhoods.
You can learn more about these roles by looking at pay and job data on the healthcare and wellness sector in Maui.
Manufacturing and Industrial Output
Hawaii’s manufacturing and technology sectors are smaller than tourism but remain important to the economy. They provide local goods and jobs and support other industries like energy and defense.
Local Manufacturing Landscape
Hawaii produces a mix of food processing, clothing, and specialty products. While local manufacturing is smaller than service sectors, it still helps the economy.
Some main products include processed foods, clothing, and craft goods.
Key industries and products:
- Food processing (coffee, macadamia nuts, and tropical fruit)
- Apparel and textiles
- Petroleum and coal products
In 2025, petroleum and coal products reached about $73 million in export value. The food manufacturing sector made about $18 million, showing the importance of local food brands.
Factories tend to be small but serve local needs and support Hawaii’s identity.
Information and Technology Sector
Technology and information are growing in Hawaii, though they are smaller than tourism or healthcare. More startups, tech services, and software support firms now operate on the islands.
Government programs have encouraged new investment in broadband and digital infrastructure. The tech sector includes IT support, computer programming, and electronics manufacturing.
In 2025, exports of computer and electronic products totaled about $16 million.
Some of the tech jobs available are:
- IT support and services
- Software development
- Electronics and hardware assembly
This sector offers high-skill opportunities and helps connect Hawaii to the world.
Employment and Labor Trends
Hawaii’s job market has changed a lot in recent years. Both unemployment rates and opportunities for new businesses are shaping the workforce in unique ways.
Unemployment Rates and Trends
In early 2025, Hawaii’s labor market improved as the state recovered from the 2023 Maui wildfires. The civilian labor force grew, meaning more people looked for work or started new jobs.
At the same time, both the number of unemployed people and the unemployment rate went down. This is good news for job seekers in Hawaii.
The latest reports show fewer residents were out of work compared to last year. Job growth has been strongest in hospitality, healthcare, and retail.
Here’s a quick look at these changes:
| Year | Labor Force | Unemployment Rate |
|---|---|---|
| 2024 | Lower | Higher |
| 2025 | Higher | Lower |
Entrepreneurial Opportunities
I’ve noticed more people in Hawaii are starting their own businesses. The local economy is adapting to new trends.
Remote work and flexible jobs are becoming more common. These changes open doors for freelancers and small business owners.
It’s easier to become an entrepreneur now. The islands offer more support, training, and networking events for people with new ideas.
Many businesses now offer remote and gig roles. They do this to attract talent and adjust quickly to market changes.
Hawaii’s job scene is more dynamic as a result. People who want to work for themselves will find a friendly environment and helpful resources.
To learn more about these workforce changes, check out this summary of industry growth trends in Hawaii.
