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DBE~~THE DEPARTMENT OF BUSINESS ECONOMIC DEVELOPMENT & TOURISM

STATE OF HAWAII

QUARTERLYSTATISTICAL& ECONOMIC

REPORT

December 1997

0

This Quarterly Statistical and Economic Report has been prepared by the staff of the Researchand Economic Analysis Division of the State Department of Business, Economic Development,and Tourism (DBEDT). The report provides concise statistical information and analyses onEmployment, Income and Prices, Taxes, Tourism, and Construction, as well as an overview ofthe four Hawaii State Counties.

The department is headed by director, Dr. Seiji F. Naya. This report was prepared under thedirection ofthe division administrator, Dr. Pearl Imada Iboshi.

Technical notes and source descriptions have been kept to a minimum. However, the staff oftheResearch and Economic Analysis Division would be happy to respond to any inquiries of atechnical nature that readers may have (586-2466). The information contained in this reportreflects data received by the Research Division on or before December 1997.

This report has been catalogued as follows:

Hawaii. Dept. of Business, Economic Development and Tourism. Research and EconomicAnalysis Division.

Quarterly statistical and economic report-State ofHawaii. Honolulu: 1975-

Quarterly.

1. Hawaii-Statistics.HA4007.H359

CONTENTS

Table ofContents.

Part I. Economic Trends and OutlookState of the EconomyOutlook of the Economy 3County Economic Conditions s

Table 1. Selected Economic Activities: State 6Table 2. Selected Economic Activities: City and County of Honolulu 7Table 3. Selected Economic Activities: Hawaii County 8Table 4. Selected Economic Activities: Maui County 9Table 5. Selected Economic Activities: Kauai County 10

Part II. Labor Force and JobsOverview ii

A-i. Civilian Labor Force 12A-2. Civilian Employment 13A-3. Civilian Unemployment 14A-4. Civilian Unemployment Rate 15A-S. Non-Agricultural Wage and Salary Jobs 16A-6. Construction Jobs 17A-7. Manufacturing Jobs 18A-8. Transportation Jobs 19A-9. Communication Jobs 20A-i0. Utilities Jobs 21A-il. Retail Trade Jobs 22A-12. Wholesale Trade Jobs 23A-13. Finance, Insurance and Real Estate Jobs 24A-14. Services and Miscellaneous Jobs 25A-iS. HoteiJobs 26A-16. Federal Government Jobs 27A-17. State Government Jobs 28A-18. Local Government Jobs 29A-i9. Agriculture Wage and Salary Jobs 30

Part III. Income and PricesOverview 31

B-i. Personal Income for Hawaii by Major Sources 32B-2. Personal Income 33B-3. Total Wages and Salaries 34B-4. Other Labor Income 35B-S. Proprietors’ Income 36B-6. Dividends, Interest, and Rent 37B-7. Transfer Payments 38B-8. Contribution to Social Insurance 39B-9. Honolulu Consumer Price Index, All Urban Consumers 40

Part IV. Tax Base and RevenuesOverview 41

C-i. General Fund Tax Revenues and Major Components 43C-2. State General Fund Tax Revenues 44C-3. General Excise & Use Tax Revenues 45C-4. Net Individual Income Tax Revenues 46C-S. Net Corporate Income Tax Revenues 47C-6. Transient Accommodation Tax Revenues 48C-7. General Excise & Use Tax Base 49C-8. Retailing Tax Base soC-9. Services Tax Base SiC-b. Contracting Tax Base 52C-il. Hotel Rental Tax Base 53C-12. Producing Tax Base 54C-13. 4% Use Tax Base 55

Part V. TourismOverview 57

D- i Visitor Arrivals and Average Daily VisitorCensus 58D-2. Total Visitor Arrivals 59D-3. Westbound Visitors 60D-4. Eastbound Visitors 61D-S. Average Daily Visitor Census (number of people) 62D-6. Average Daily Visitor Census (percentage change) 63D-7. Hotel Occupancy Rate 64

Part VI. ConstructionOverview 65

E- 1. Estimated Value of Completed Construction, New Private BuildingAuthorizations, and Government Contracts Awarded 66

E-2. Estimated Value of Completed Construction, New Private BuildingAuthorizations, and Government Contracts Awarded(percentage change) 67

E-3. Number of Single Family Units Authorized 68E-4. Number of Multi-Family Units Authorized 69E-S. Honolulu Construction Cost Index: i985—1997,

Single Family Residence (Jan. 1992= 100) 70E-6. Honolulu Construction Cost Index: 1985—i997,

High-Rise Building (Jan. 1992=iOO) 71E-7. Estimated Value of Private Building Construction Authorizations,

By County: 1985 to 1997 72E-8. State Government Capital Improvement Project Expenditures:

i986to 1997 74

Terms and Definitions 75

Ii

STATE OF THE ECONOMY

Through the third quarter of 1997Hawaii’s economy remained fragile.While certain labor market indicators,such as civilian employment and the un-employment rate, showed improvement,the number of nonagricultural wage andsalary jobs continued to fail slowly. Per-sonal income growth was modest butrespectable, yet tax revenues were down.Visitor arrivals grew by a small amount,but construction activity declined.

Since the third quarter of 1995, ci-vilian employment and nonagriculturalwage and salary jobs have moved in op-posite directions. Through the thirdquarter, civilian employment grew by1.4 percent while nonagricultural jobsfell by 0.1 percent (table 1). Preliminaryevidence suggests that the differencemay be due to increases in the number ofself-employed individuals. Whateverthe case, the unemployment rate contin-ues to fall; through September 1997, theunemployment rate stood at 6.0 percent,0.4 percentage points lower than in thefirst three quarters of 1996.

Last quarter’s issue of the QuarterlyStatistical and Economic Report noted arapid rise in personal income for the firstquarter of 1997. Since then, the U.S.Bureau of Economic Analysis has re-vised downward its estimate of personalincome growth for the first quarter to 2.2percent relative to the year-earlier quar-ter (table B-2). For the second quarter,the BEA estimated personal incomegrowth at 2.1 percent over the secondquarter of 1996. The wages and salariescomponent of personal income increasedat rates of 2.5 percent and 1.7 percent in

the first two quarters, respectively (tableB-3).

General fund tax revenues weredown 2.9 percent in the first three quar-ters of 1997 relative to the same periodin 1996 (table 1). Both general excisetax (GET) revenues and individual in-come tax receipts, together comprising88 percent of the general fund, weredown from the first three quarters of1996. GET revenues fell 3.1 percent andnet individual income tax revenue waslower by 3.6 percent.

However, much of this decrease wasdue to technical factors. GET revenuesin 1996 were inflated by an accelerationof receipts associated with the move toelectronic funds transfers. This made1997 revenues look unusually low bycomparison. Income tax revenues werelower in 1997 due to a reduction in themaximum withholding rate from 10 to 8percent. That these factors influencedrecent growth rates is suggested by cal-culating annual compounded growthrates from the first nine months of 1995through the first nine months of 1997:general fund revenues grew by 2.9 per-cent, GET revenues grew by 1.9 percent,and net individual income tax revenuegrew by 4.1 percent, all at annual rates.

The decline in visitor arrivals thatcharacterized the first half of 1997 re-versed itself moderately in the thirdquarter. Total visitor arrivals grew by0.9 percent in the third quarter of 1997over the year-earlier quarter (table 1).However, for the year through Septem-ber, arrivals were down 0.4 percent

I

compared to the same period in 1996.Westbound arrivals grew at 2.1 percentin the third quarter compared to the samequarter in 1996, while eastbound arrivalsfell slightly by 0.7 percent. The relativestrength of westbound arrivals in recentyears is unusual and may reflect the ini-tial effects of the recent economic diffi-culties in Asia.

Construction activity slowed in thethird quarter of 1997 relative to the thirdquarter of 1996. The value of construc-tion completed declined by 8.5 percent(table E-2), the value of total building

authorizations fell by 24.5 percent, thenumbers ofboth single family and multi-family unit authorizations declined (ta-bles E-3 and E-4), and both governmentcontract awards and capital improvementproject spending were lower (tables E-2and E-8). However, on a year-to-datebasis, comparing the first three quartersof 1997 with the same period in 1996,many of these indicators remainedhigher. This was true for the value oftotal building authorizations, the numberof multi-family unit authorizations, andCIP expenditures.

H H 1k H ft ~iilhITkiiE

16

Annual Percentage Change in Personal IncomeQuarterly

14

12

10

80

00I..0

6

4

2

0

-21 3 1

1990 19913 1 3 1 3 1 3 1

1992 1993 1994 19953 1 3 1

1996 1997

OUTLOOK OF THE ECONOMY

The prospects for economic growthin Hawaii are less bright than DBEDTexpected as of the last issue of theQuarterly Statistical and Economic Re-port. While DBEDT continues to expectmodest growth, financial and economicevents in Southeast Asia and Japan sug-gest lower rates of forecast growth.

Economic growth on the U.S. Main-land continues to be robust. The BlueChip Economic Indicators (as of De-cember 10, 1997), representing the con-sensus of approximately 50 economicforecasters, projected real gross domes-tic product (GDP) growth of 3.7 percentfor 1997 and 2.5 percent for 1998. TheBlue Chip Indicators forecast inflation,as measured by the GDP deflator, at 2.0percent in 1997 and 2.1 percent in 1998.Unemployment should remain low at 5.0percent in 1997 and 4.9 percent in 1998.

The UCLA Anderson BusinessSchool forecasts real economic growthin California to expand by 4.8 percent in1997 and by 3.3 percent in 1998. Un-employment is expected to be at 6.38percent in 1997, down from 7.22 percentin 1996. The 1998 forecast for unem-ployment is 5.85 percent. Employmentin nonagricultural establishments is ex-pected to rise by 3.3 percent in 1997 andby 2.9 percent in 1998.

Blue Chip forecasts for real eco-nomic growth in the Japanese economywere lowered to 1.3 percent in 1997 and2.0 percent in 1998. These rates reflect

drops of 0.9 and 0.7 percentage points,respectively, from the forecasts reportedin September. Inflation is expected toremain low at 1.6 percent and 1.3 per-cent in 1997 and 1998, respectively.The Blue Chip consensus forecast for theaverage yen-dollar exchange rate in1997 is 123 and in 1998 the forecast rateis 120.6. As of this writing, the ex-change rate stands at approximately 130yen per dollar.

Although Hawaii’s economic rela-tions with the other Asian economies arenot as strong, it is worth noting that theBlue Chip Indicators have significantlylowered its expected real economicgrowth rates in 1998 for several Asiancountries: South Korea (-2.1 percentagepoints), Taiwan (-0.8 percentage points),Singapore (-1.1 percentage points),Hong Kong (-1.4 percentage points), andChina (-1.2 percentage points).

Combined, these considerations andDBEDT’s projections lead to the fore-casts presented in the accompanying ta-ble. We continue to expect modestvisitor arrival growth in 1997 andgrowth of 1.6 percent in 1998. Growthrates for real gross state product havebeen lowered to just over 1 percentthrough 2000. Job growth should turnslightly positive next year and expandslowly in 1999 and 2000. Inflation isforecast to remain near 1 percent through1998 and to accelerate modestly there-after.

3

ACTUAL AND FORECAST KEY ECONOMIC INDICATORSFOR HAWAII: 1995 TO 2000

Economic Indicators1995

(actual)1996

(actual)1997

(forecast)1998

(forecast)1999

(forecast)2000

(forecast)

TOTAL POPULATION (in thousands)

VISITOR ARRIVALS (in thousands)

HONOLULU CPI-U (1982-84=100)

PERSONAL INCOME (in million dollars)

PERSONAL INCOME (in $1987 million)

TOTAL WAGE & SALARY JOBS (in thousands)

GROSS STATE PRODUCT (in million dollars)

REAL GROSS STATE PRODUCT (in $1987 million)

GROSSSTATEPRODUCTDEFLATOR(1987=100)

1 179.2

6,629.2

168.1

29,592.5

20,224.8

540.2

32,723.7

23,290.9

140.5

1,183.7

6,823.1

170.7

30,072.0

20,241.8

536.7

33,509.1

23,498.7

142.6

1,190.9

6,857.2

172.4

30,673.4

20,442.2

536.7

34,179.3

23,752.1

143.9

1,197.9

6,966.9

174.5

31,317.6

20,624.0

538.8

34,931.2

24,007.7

145.5

1205.2

7,078.4

177.1

32,100.5

20,827.2

542.1

35,839.4

24,297.9

147.5

1212.9

7,220.0

180.6

33,063.5

21,031.4

547.5

36,914.6

24,577.0

150.2

Annual Percentage Growth

TOTAL POPULATION

VISITORARRIVALS

HONOLULU CPI-U (1982-84100)

PERSONALINCOME(inmilliondollars)

PERSONAL INCOME (in $1987 million)

TOTALWAGE&SALARYJOBS

GROSS STATE PRODUCT (in million dollars)

REALGROSSSTATEPRODUCT(in$l987miltion)

GROSSSTATEPRODUCTDEFLATOR(1987=100)

0.63.22.23.91 .7

(0.7)2.40.51.9

0.42.91 .51.60.1

(0.6)

2.40.91.5

0.60.51 .02.0

1 .00.0

2.0

1.10.9

0.61.61 .22.10.90.42.2

1.11.1

0.61.61 .52.51.00.62.6

1.21.4

0.62.02.03.01 .01.03.0

1.11.8

4

COUNTY ECONOMIC CONDITIONS

Economic conditions by county con-tinue to indicate that the Neighbor Islandcounties are performing somewhat betterthan Honolulu. Among the NeighborIslands, Hawaii and Maui seem to bedoing best.

Civilian employment expanded in allcounties in the third quarter and for theyear to date. The largest third quarterpercentage increases (relative to the thirdquarter of 1996) came in Maui County(2.5 percent) and Hawaii County (2.3percent) (tables 4 and 3, respectively).For the year through September, thesecounties have each seen civilian em-ployment rise by 3.4 percent over thesame period in 1996.

The unemployment rate also fell inmost counties. The only exception wasHawaii County where the third quarterunemployment rate remained at the samelevel (10.7 percent) as in the third quar-ter of 1996. Year-to-date, HawaiiCounty’s unemployment rate was down0.2 percentage points from the first threequarters of 1996. All other counties alsoexperienced a year-to-date decline in theunemployment rate.

Honolulu and Kauai counties saw ayear-to-year decline in nonagriculturalwage and salary jobs in the third quarterof 1997. Honolulu nonagricultural jobsfell by 0.4 percent (table 2), while Kauainonagricultural jobs declined by 1.0 per-cent (table 5). Both Hawaii and Mauicounties saw increases in such jobs overthe same period.

Contract construction jobs continuedto post large percentage declines in all

four counties for the third quarter of1997 compared to one year earlier. Thisalso held true for the year-to-date, exceptfor Hawaii County where contract con-struction job increases in the secondquarter moderated the decline.

Service sector jobs expanded in allcounties in the third quarter, exceptKauai. As a part of services, hotel jobsgrew in both Honolulu and Hawaiicounties, but hotel jobs declined in Mauiand Kauai.

Kauai was the only county to see ag-ricultural wage and salary jobs grow inthe third quarter. However, for the yearthrough September, Kauai agriculturaljobs were 5.3 percent lower than in thesame period in 1996 (table 5). OnlyMaui County saw an increase in agri-cultural wage and salary jobs for the firstnine months of 1997 relative to the pre-vious year.

Third-quarter visitor arrivals grew inall counties over the third quarter of1996. Maui County saw the largest per-centage increase at 4.2 percent, followedby Hawaii County with an increase of3.7 percent. However, year-to-date, onlythe counties of Hawaii and Kauai expe-rienced increases in visitor arrivals.Eastbound visitors were the primarysource of strength in Honolulu and Ha-waii counties, while westbound visitorswere the main source in Maui and Kauai.Occupancy rates were lower in all coun-ties for the year through September, ex-cept for Hawaii County where the aver-age occupancy rate rose by 1.4 percent-age points.

Table 1

SELECTED ECONOMIC ACTIVITIES: STATE

SERIES UNIT

3rd QUARTER 1997 YEAR-To-DATE

%CHANGE

YEARAGO NUMBER%CHANGEYEARAGO

CIVILIAN LABOR FORCE 1/ 1,000 598.4 0.9 595.0 0.9Civilian Employment 1,000 560.2 1.2 559.0 1.4Civilian Unemployment 1,000 38.2 -3.1 36.0 -3.1

UNEMPLOYMENT RATE 2! % 6.4 -0.3 6.0 -0.4

TOTAL JOBS 1,000TOTAL NON-AGR. WAGE & SALARY JOBS 1/ 1,000 522.6 -0.1 528.2 -0.1

ContractConstruction 1,000 21.3 -11,0 21.4 -9.9Manufacturing , 1,000 16.3 -2.1 16,4 -1.9Trans., Comm., Utilities 1,000 40.8 -0.1 41.0 0.5Trade 1,000 133.9 -0.5 134.4 -0.4

Retail 1,000 112.1 -1.0 112.8 -0.6Finance, Insur., & Real Estate 1,000 35.8 -2.8 35.9 -2.6Services & Miscellaneous 1,000 168.6 1.4 168.4 1.7

Hotels 1,000 38.7 0.6 39.2 2.3Government 1,000 105.9 1.9 110.7 0.6

State 1,000 57.1 3.7 62.9 1.7Federal 1,000 30.8 -2.2 30.7 -2.4

AGRICULTURE WAGEANDSALARYJOBS 1/ 1,000 7.2 -4.9 6.9 -4.8AGRICULTURE SELF-EMPLOYED 1,000NON-AGR. SELF-EMPLOYED 1,000

STATE GENERAL FUND TAX REVENUES $MILL 704.7 -4.6 2,069.7 -2.9TRANS.ACCOM.TAXREVENUES $MILL 31.9 -1.5 97.7 1.0GENERALEXCISE&USETAXBASE $MILL 11,620.7 -7.3 35,327.7 -3.6

Retailing Tax Base $MILL 3,855.5 -9.2 11,799.5 -3.9Services Tax Base $MILL 1,332.2 -10.0 4,069.7 -5.1Contracting Tax Base $MILL 718.5 -14.3 2,142.1 -13.5Hotel Rental Tax Base $MILL 490.5 -10.5 1,559.7 -1.6Producing Tax Base $MILL 135.6 24.5 381.5 6.8

VISITOR ARRIVALS 3/ PERSONS 1,826,490 0.9 5,209,340 -0.4Westbound Visitors PERSONS 1,043,510 2.1 3,078,240 -0.2Eastbound Visitors PERSONS 782,980 -0.7 2,131,100 -0.7

HOTEL OCCUPANCY RATES 2/ 76.2 -2.3 75.3 -2.4Notes: 1/ Labor force and jobs averages are based on monthly rounded data. Labor force data were also

rebenchmarked in February of 1997. Self-employed data are no longer published by DLIR.2/ Change represents absolute change in rates rather than percentage change in rates.3/ Preliminary data. HVCB revised arrival data for 1995 on 9/30/97 and for 1996 on 8/29/97.

Sources: Hawaii Dept. of Labor & Industrial Relations; Dept. of Taxation; Hawaii Visitors and ConventionBureau; and PKF-Hawaii. Compiled by Economic Planning Information System, READ, DBEDT.

6

Table 2

SELECTED ECONOMIC ACTIVITIES: CITY AND COUNTY OF HONOLULU

3rd QUARTER 1997 YEAR-TO-DATE

%CHANGE %CHANGESERIES UNIT NUMBER YEAR AGO NUMBER YEAR AGO

CIVILIAN LABOR FORCE 1/ 1,000 429.3 0.6 428.1 0.2Civilian Employment 1,000 406.6 0.9 406.9 0.5Civilian Unemployment 1,000 22.7 . -4.3 21.3 -5.1

UNEMPLOYMENT RATE 2! % 5.3 -0.3 5,0 -0.2

TOTAL NON-AGR. WAGE & SALARY JOBS 1/ 1,000 395.9 -0.4 400.9 -0.7Contract Construction 1,000 16.1 -10.5 16.1 -11.2Manufacturing 1,000 12.5 -2.1 12.6 -1.0Trans., Comm., Utilities 1,000 33.0 -0.2 33.2 0.4Trade 1,000 98.8 -2.0 99.3 -1.8

Retail 1,000 80.5 -2.9 81.2 -2.4Finance, lnsur., & Real Estate 1,000 28.9 -3.0 29.0 -3.4Services & Miscellaneous 1,000 122.2 1.6 121.8 1.2


State 1,000 42.8 3.6 48.2 1.8Federal 1,000 29.0 -2.0 28.9 -1.7

AGRICULTUREWAGEANDSALARYJOBS 1,000 2.0 -3.2 1.9 -5.5

TRANS. ACCOM. TAX REVENUES $MILL 25.7 6.7 75.0 6.5GENERAL EXCISE & USE TAX BASE $MILL 10,484.7 -0.7 31,621.1 0.3

Retailing Tax Base $MILL 3,512.4 -0.8 10,669.4 1.4Services Tax Base $MILL 1,141.3 -7.8 3,473,8 -4.0Contracting Tax Base $MILL 628.1 -11.0 1,837.1 -12.4Hotel Rental Tax Base $MILL 415.6 0.5 1,272.4 7.8Producing Tax Base $MILL 107.4 38.1 295.6 17.5

VISITORARRIVALS 3/ PERSONS 1,354,660 1.0 3,792,250 -0.5Westbound Visitors PERSONS 584,890 -4.8 1,728,680 -5.2

Eastbound Visitors PERSONS 769,770 5.9 2,063,570 3.8HOTEL OCCUPANCY RATES 2/ % 80.9 -4.0 79.9 -3.0

Notes: 1/ Labor force and jobs averages are based on monthly roundea data. Labor force data were alsorebenchmarked in February of 1997. Self-employed data are no longer published by DLIR.

2/ Change represents absolute change in rates rather than percentage change in rates.3/ Preliminary data. 1996 arrival data revised by HVCB on 8/29/97.


7

Table 3

SELECTED ECONOMIC ACTIVITIES: HAWAII COUNTY

SERIES UNIT


%CHANGEYEAR AGO NUMBER

%CHANGEYEAR AGO

CIVILIAN LABOR FORCE 1/ 1,000 69.6 2.3 68.3 3.1Civilian Employment 1,000 62.2 2.3 61.6 3.4Civilian Unemployment 1,000 7.4 2.5 6.7 0.9

UNEMPLOYMENT RATE 2/ % 10.7 0.0 9.8 -0.2

TOTALNON-AGR.WAGE&SALARYJOBS 1/ 1,000 48.4 1.5 48.6 2.6Contract Construction 1,000 2.1 -10.6 2.3 -3.8Manufacturing 1,000 1.6 -4.1 1.6 -3.1Trans., Comm., Utilities 1,000 2.6 1.9 2.6 1.7Trade 1,000 12.9 3.9 13.0 4.2

Retail 1,000 11.3 5.1 11.3 . 5.2Finance, Insur., & Real Estate 1,000 2.5 -6.3 2.5 0.4Services & Miscellaneous 1,000 16.6 2.2 16.5 4.2


State 1,000 6.9 4.0 7.1 1.3Federal 1,000 0.9 -1.9 0.9 0.0

AGRICULTURE WAGEANDSALARYJOBS 1,000 2.3 -8.0 2.3 -11.3

TRANS. ACCOM. TAX REVENUES $MILL 1.8 1.2 5.8 -2.3GENERAL EXCISE & USE TAX BASE $MILL 465.9 -4.4 1,499.8 -9.3

Retailing Tax Base $MILL 136.2 -5.9 436.0 -15.9Services Tax Base $MILL 82.0 -5.1 259.3 -6.5Contracting Tax Base $MILL 37.8 -13.3 127.8 -10.9Hotel Rental Tax Base $MILL 11.7 -25.5 47.5 -26.9Producing Tax Base $MILL 21.5 11.3 63.7 -10.1

VISITOR ARRIVALS 3/ PERSONS 324,870 3.7 952,610 5.9Westbound Visitors PERSONS 219,270 2.3 688,420 3.2Eastbound Visitors PERSONS 105,600 6.6 264,190 13.4

HOTELOCCUPANCYRATES 2/ % 65.2 -1.3 66.9 1.4Notes: 1/ Labor force and jobs averages are based on monthly rounded data. Labor force data were also

rebenchmarked in February of 1997. Self-employed data are no longer published by DLIR.2/ Change represents absolute change in rates rather than percentage change in rates.3/ Preliminary data. 1996 arrival data revised by HVCB on 8/29/97.


8

Table 4

SELECTED ECONOMIC ACTIVITIES: MAUI COUNTY


%CHANGE %CHANGESERIES UNIT YEARAGO NUMBER YEARAGO

CIVILIAN LABOR FORCE 1/ 1,000 70.3 2.3 69.7 3,3Civilian Employment 1,000 65.4 2.5 64.8 3.4Civilian Unemployment 1,000 5.0 -1.0 4.9 1.6

UNEMPLOYMENT RATE 2/ % 7.1 -0.2 7.1 -0.1

TOTALNON-AGR.WAGE&SALARYJOBS 1/ 1,000 55.2 1.7 55.3 2.6Contract Construction 1,000 2.0 -12.6 1.9 -10.3Manufacturing 1,000 1.8 1.0 1.7 -1.6Trans., Comm., Utilities 1,000 3.5 -4.1 3.7 1.4Trade 1,000 15.4 4.3 15.4 3.8

Retail 1,000 14.0 4.2 14.0 3.8Finance, Insur., & Real Estate 1,000 3.0 2.8 3.0 2.3Services & Miscellaneous 1,000 21.8 1.6 22.0 3.4

Hotels 1,000 10.8 -0.9 10.9 0.0Government 1,000 7.7 3.6 7,6 2.8

State 1,000 4.9 3.9 5.1 2.6Federal 1,000 0.5 0.0 0.5 0.0

AGRICULTURE WAGEANDSALARYJOBS 1,000 2.0 -10.0 2.0 1.1

TRANS. ACCOM. TAX REVENUES $MILL 3.2 -19.8 13.5 -14.0GENERAL EXCISE & USE TAX BASE $MILL 467.2 -22.3 1,599.8 -18.9

Retailing Tax Base $MILL 141.5 -28.2 499.9 -23.4Services Tax Base $MILL 77.8 -3.7 249.1 2.0Contracting Tax Base $MILL 36.5 -17.7 122.6 -11.6Hotel Rental Tax Base $MILL 45.8 -42.3 190.5 -27.0Producing Tax Base $MILL 5.7 -5.5 18.4 -12.3

VISITORARRIVALS 3/ PERSONS 618,510 4.2 1,784,520 -0.6Westbound Visitors PERSONS 485,900 4.7 1,433,540 1.6Eastbound Visitors PERSONS 132,610 2.7 350,980 -8.5

HOTEL OCCUPANCY RATES 2! 4/ % 73.2 -0.8 72.8 -2.9Notes: 1/ Labor force and jobs averages are based on monthly rounded data. Labor force data were also

rebenchmarked in February of 1997. Self-employed data are no longer published by DLIR.2/ Change represents absolute change in rates rather than percentage change in rates.3/ Preliminary data. 1996 arrival data revised by HVCB on 8/29/97.4/ Data represents Maui island only.


9

Table 5

SELECTED ECONOMIC ACTIVITIES: KAUAI COUNTY


%CHANGE %CHANGESERIES UNIT NUMBER YEAR AGO NUMBER YEAR AGO

CIVILIAN LABOR FORCE 1/ 1,000 29.2 -0.2 28.9 -0.5Civilian Employment 1,000 26.1 1.1 25.8 0.9Civilian Unemployment 1,000 3.0 -10.8 3.1 -11.4

UNEMPLOYMENT RATE 2/ % 10.4 -1.2 10.6 -1.3

TOTAL NON-AGR. WAGE & SALARY JOBS 1/ 1,000 23.3 -1.0 23.4 0.0ContractConstruction 1,000 1.0 -18.4 1.1 -15.0Manufacturing 1,000 0.5 3.5 0.5 -3,3Trans., Comm., Utilities 1,000 1.5 -1.1 1.5 0.4Trade 1,000 6.9 4.3 6.8 3.2

Retail 1,000 6.4 4.6 6.4 3.6Finance, Insur., & Real Estate 1,000 1.4 -5.6 1.4 0.8Services & Miscellaneous 1,000 8.1 -2.4 8.1 0.0

Hotels 1,000 3.3 -4.8 3.3 -2.9Government 1,000 3.9 1.3 4.0 0.1

State 1,000 2.4 2.9 2.5 1.1Federal 1,000 0.4 0.0 0.4 0.0

AGRICULTURE WAGEANDSALARYJOBS 1,000 0.9 12.8 0.8 -4.0

TRANS. ACCOM. TAX REVENUES $MILL 1.2 12.6 3.4 5.8GENERAL EXCISE & USE TAX BASE $MILL 202.9 -4.4 606.9 -13.7

Retailing Tax Base $MILL 65.3 1.0 194.2 -12.1Services Tax Base $MILL 31.1 -6.2 87.5 -14.4Contracting Tax Base $MILL 16.0 -11.6 54.6 -20.6Hotel Rental Tax Base $MILL 17.5 11.4 49.4 1.0Producing Tax Base $MILL 1.1 -66.7 3.7 -60.4

VISITOR ARRIVALS 3/ PERSONS 254,430 0.3 753,330 2.1Westbound Visitors PERSONS 221,820 2.8 648,640 2.4Eastbound Visitors PERSONS 32,610 -13.5 104,690 0.2

HOTEL OCCUPANCY RATES 2/ % 78.4 7.4 70.0 -0.1Notes: 1/ Labor force and jobs averages are based on monthly roundea data. Labor force data were also

rebenchmarked in February of 1997. Self-employed data are no longer published by DLIR.2/ Change represents absolute change in rates rather than percentage change in rates.3/ Preliminary data. 1996 arrival data revised by HVCB on 8/29/97.


10

LABOR FORCE AND JOBS

Hawaii’s labor market persists indisplaying conflicting trends. On thepositive side, the civilian labor force andcivilian employment continue to gradu-ally rise while the number of unem-ployed declines. On the negative side,the number of nonagricultural wage andsalary jobs keeps falling slowly.

The civilian labor force grew 0.9percent from the third quarter of 1996through the third quarter of 1997 (tableA-i). Civilian employment grew 1.2percent over the same period (table A-2).Both indicators have grown steadilysince the second halfof 1995.

The other side of this “good news”coin is that the number of unemployedfell by 3.1 percent in the third quarter of1997 relative to the year-earlier quarter(table A-3). Indeed, unemployment hasfallen in each quarter thus far in 1997.This has translated into reductions in theunemployment rate in each quarter, withthe third quarter rate of 6.4 percent lowerby 0.2 percentage points than in the thirdquarter of 1996 (table A-4).

However, the number of nonagri-cultural jobs has continued the nearlyuninterrupted decline it began in thefourth quarter of 1992. These jobs weredown 0.1 percent in the third quarter of1997 relative to the year-earlier period.For the third quarter, the 522,600 jobsare slightly below the level reached in1990 and well below the third-quarterpeak of 1992.

As in the past, the largest declines injobs came in the construction industry.Construction jobs fell 11.0 percent in thethird quarter from the same quarter in1996 (table A-6). Construction jobshave fallen in every quarter since thefourth quarter of 1993.

Other industries showing job de-clines from the third quarter of 1996 tothe third quarter of 1997 include: manu-facturing (-2.1 percent, table A-7),communications (-2.4 percent, tableA-9), utilities (-3.2 percent, table A-10),retail trade (-1.0 percent, table A-ll),and finance, insurance and real estate(-2.8 percent, table A-13). With the ex-ception of manufacturing, these job de-clines have coincided with the period ofslow growth in recent years. By con-trast, manufacturing jobs have been de-clining in Hawaii since the late 1980s,probably reflecting the secular shift to-ward services in the economy.

Industries showing job growth fromthe third quarter of 1996 to the thirdquarter of 1997 include: transportationjobs (0.7 percent, table A-8), wholesaletrade (1.9 percent, table A-12), servicesand miscellaneous (1.4 percent, tableA-14), and hotels (0.6 percent, tableA-15).

Federal government jobs fell by 2.2percent in the third quarter relative to theyear-earlier quarter (table A-16). How-ever, both state and local governmentjobs increased over the period by 3.7percent and 3.5 percent, respectively (ta-bles A-17 and A-18).

11

Table A-i

CIVILIAN LABOR FORCE

YearFirst

QuarterSecondQuarter

ThirdQuarter

FourthQuarter Annual

In Thousands of Persons

198519861987

1988

1989199019911992

1993199419951996

1997

475.3485.3506.0515.4519.4532.0568.7579.2587.0581.5574.2585.1593.2

477.2488.9513.0519.4526.7539.8573.0582.9588.0581.9577.1590.7593.5

478.5493.9516.3519.0521.9544.6576.1585.4585.1580.1577.8592.9598.4

485.0499.9520.8‘518.2528.0551.7577.1588.7583.8577.1579.3594.8

n/a

479.0492.0514.0518.0524.0542.0573.7584.1586.0580.2577.1590.9

n/aPercentage Change from the Same Period in Previous Year

19851986

1987

198819891990

19911992

19931994

199519961997

0.72.14.31.90.82.46.91.81.3

-0.9-1.31.91.4

0.72.44.91.21.42.56.21.70.9

-1.0-0.82.40.5

1.63.24.50.50.64.45.81.60.0

-0.9-0.42.60.9

2.83.14.2

-0.51.94.54.62.0

-0.8-1.10.42.7n/a

1.52.74.50.81.23.45.91.80.3

-1.0-0.52.4n/a

Note: n/a = not available.Source: Hawaii State Department of Labor and Industrial Relations.

12

Table A-2

CIVILIAN EMPLOYMENT

YearFirst


ThirdQuarter

FourthQuarter

Annual


19851986

19871988

19891990

19911992199319941995

19961997

449.2461.8484.3500.7505.2517.3553.9557.4560.6549.2541.7549.0560.0

450.4464.8492.2501.3512.2523.1557.1555.7563.0545.2542.8552.0556.9

449.8468.2494.7502.3511.8529.1559.4556.3560.6541.6541.9553.5560.2

458.6477.2504.9503.8514.8538.5560.6560.4559.4544.0546.6558.3

n/a

452.0468.0494.0502.0511.0527.0557.8557.8560.9545.0’543.3553.2

n/a

Percentage Change from the Same Period in Previous Year

19851986

19871988

19891990

199119921993

1994

199519961997

0.72.84.93.40.92.47.10.60.6

-2.0-1.41.42.0

0.83.25.91.92.22.16.5

-0.31.3

-3.2-0.41.70.9

1.64.15.71.51.93.45.7

-0.60.8

-3.40.12.11.2

3.34.05.8

-0.22.24.64.10.0

-0.2-2.70.52.1n/a

1.63.55.61.61.83.15.80.00.6

-2.8-0.31.8n/a

Note: n/a = not available.

Source: Hawaii State Department of Labor and Industrial Relations.

13

TabIeA-3

CIVILIAN UNEMPLOYMENT

YearFirst


ThirdQuarter

FourthQuarter

Annual


1985

19861987198819891990

1991

19921993

1994

1995

19961997

26.123.521.714.714.214.714.821.826.432.332.636.133.2

26.824.120.818.114.516.715.927.325.036.734.438.836.6

28.725.721.616.710.115.616.729.124.538.635.939.438.2

26.422.715.914.413.313.116.528.324.433.132.536.5

n/a

27.024.020.016.013.015.016.026.625.135.233.937.7

n/a


198519861987

19881989

19901991

19921993

1994199519961997

1.4-10.1-7.6

-32.1-3.83.40.9

47.721.022.40.7

10.9-7.9

0.7-10.2-13.4-13.0-20.315.2-4.471.4-8.446.6-6.012.7-5.6

3.0-10.2-16.2-22.6-39.754.47.3

74.3-15.957.5-7.09.9

-3.1

-5.0-14.0-30.0-9.2-7.9-1.2

‘ 25.871.4

-13.735.6-1.912.4n/a

0.0-11.1-16.7-20.0-18.815.46.5

66.7-5.840.2-3.711.4

n/aNote: n/a = not available.Source: Hawaii State Department of Labor and Industrial Relations.

14

Table A-4CIVILIAN UNEMPLOYMENT RATE

YearFirst


ThirdQuarter

FourthQuarter

Annual

Percent of the Civilian Labor Force

19851986

19871988

19891990

1991199219931994

1995

19961997

5.54.84.32.92.72.82.63.84.55.65.76.25.6

5.64.94.13.52.73.12.84.74.36.36.06.66.2

6.05.24.23.21.92.92.95.04.26.66.26.66.4

5.44.53.12.82.52.42.94.84.25.75.66.1n/a

5.64.93.93.12.52.82.84.64.36.15.96.4n/a


15

Table A-5

NON-AGRICULTURAL WAGE AND SALARY JOBS

YearFirst


ThirdQuarter

FourthQuarter

Annual


19851986

1987198819891990

19911992

199319941995

1996

1997

420.0432.8451.9470.4495.4520.0537.9543.1540.1535.5536.0531.2531.1

423.7435.8459.0476.9503.1528.6537.3544.7543.4538.0536.2531.6530.7

426.9438.2458.4476.8504.0525.7536.1538.7532.3530.5526.0523.0522.6

432.4447.5470.5488.2519.3539.2545.2544.7539.8540.7533.2531.3

n/a

425.7438.6460.0478.1505.5528.4539.1542.8538.9536.2532.9529.3


19851986

19871988

1989199019911992

1993

1994199519961997

2.43.14.44.15.35.03.41.0

-0.6-0.90.1

-0.90.0

2.22.95.33.95.55.11.61.4

-0.2-1.0-0.3-0.9-0.2

4.02.64.64.05.74.32.00.5

-1.2-0.3-0.8-0.6-0.1

4.03.55.23.86.43.81.1

-0.1-0.90.2

-1.4-0.3n/a

3.23.04.93.95.74.52.00.7

-0.7-0.5-0.6-0.7n/a


16

Table A-6

CONSTRUCTION JOBS

YearFirst


ThirdQuarter



1985

1986

198719881989

19901991

199219931994199519961997

16.017.420.621.726.530.933.531.232.729.526.523.821.9

17.017.621.223.028.631.433.831.032.729.326.223.721.1

17.919.421.524.030.232.934.031.332.529.526.723.921.3

17.920.221.5

‘ 24.931.534.033.032.631.528.525.822.5

n/a

17.218.621.223.429.232.333.631.532.329.226.323.5

n/a


19851986

19871988

198919901991

19921993

1994199519961997

-5.68.6

18.65.2

22.316.68.2

-6.84.7-9.8

-10.1-10.4-7.9

0.03.5

20.98.5

24.39.97.5

-8.25.3

-10.3-10.8-9.6

-10.8

13.98.5

10.811.725.6

9.23.1

-7.83.8

-9.1-9.8

-10.3-11.0

31.913.26.4

16.026.57.8

-2.9-1.2-3.4-9.7-9.3

-12.8n/a

8.88.5

13.810.424.710.73.8

-6.02.5

-9.7-9.9

-10.8n/a


17

Table A-7

MANUFACTURING JOBS

YearFirst


ThirdQuarter

FourthQuarter

Annual


19851986

19871988

19891990

199119921993

19941995

19961997

21.421.821.821.821.621.120.619.719.317.816.816.716.4

22.022.321.922.221.421.020.419.619.318.016.916.716.4

22.422.322.022.221.621.120.620.019.417.917.216.716.3

22.021.821.821.721.421.020.319.418.717.417.116.5

n/a

21.922.021.922.021.521.120.519.719.217.8.17.016.6

n/a


1985

198619871988

1989

1990199119921993

1994

199519961997

-0.71.70.4

-0.3-0.7-2.4-2.5-4.3-2.0-7.5-5.8-0.6-1.9

-0.11.7

-1.91.4

-3.6-1.9-3.1-3.5-2.0-6.6-6.3-1.2-1.7

-0.6-0.4-1.20.8

-2.9-1.9-2.4-3.0-3.3-7.7-3.7-3.2-2.1

2.3-0.80.2

-0.5-1.6-1.9-3.3-4.4-3.4-7.2-1.9-3.5n/a

0.20.6-0.60.3

-2.2-2.0-2.8-3.8-2.6-7.2-4.3-2.4n/a


18

Table A-8

TRANSPORTATION JOBS

YearFirst


ThirdQuarter

FourthQuarter

Annual


198519861987

19881989

1990

1991

19921993

1994

19951996

1997

22.824.126.027.529.030.932.832.931.531.930.630.831.4

23.424.426.827.829.731.432.433.031.432.330.830.731.2

23.524.627.227.829.931.933.033.131.231.730.730.931.1

23.925.227.628.131.033.233.332.631.131.730.731.3

n/a

23.424.526.927.829.931.832.932.931.331.930.730.9

n/a


1985

19861987

1988

19891990

1991

19921993

19941995

19961997

6.15.68.15.65.66.46.20.3

-4.11.1

-4.00.71.8

6.64.29.83.86.95.73.21.9

-4.92.7

-4.7-0.31.6

5.54.5

10.91.97.67.03.20.4

-5.61.3

-3.00.50.7

5.35.59.71.8

10.1. 7.3

0.2-1.9-4.61.9

-3.42.1n/a

5.94.99.73.27.66.63.20.2

-4.81.8

-3.70.7n/a


19

Table A-9

COMMUNICATION JOBS

YearFirst


ThirdQuarter



1985

19861987

1988

1989

19901991

19921993

1994

1995

1996

1997

7.47.17.27.67.37.37.57.06.76.36.26.36.3

7.37.17.37.57.37.47.47.06.56.26.36.36.2

7.37.17.27.57.37.47.36.96.36.26.36.46.2

7.37.17.47.67.37.47.26.86.26.36.36.4n/a

7.37.17.37.67.37.47.36.96.46.36.36.4n/a


19851986

1987

1988

1989

1990

19911992

1993

19941995

19961997

-1.1-5.21.96.3

-4.60.22.5

-6.7-3.6-5.9-2.92.4

-0.8

-3.1-2.52.33.0

-3.31.8

-0.2-5.4-7.4-4.10.80.8

-1.3

-1.6-3.41.44.4

-2.71.6

-1.3-6.2-8.5-1.61.90.8

-2.4

-2.0-2.13.72.0

-2.91.4

-3.1-5.1-9.52.4

-0.50.8n/a

-1.9-3.32.43.9

-3.41.3

-0.6-5.8-7.2-2.4-0.21.6n/a


20

Table A-b

UTILITIES JOBS

YearFirst


ThirdQuarter



1985

198619871988

.19891990

1991199219931994

199519961997

2.42.42.62.72.73.03.03.33.53.63.73.83.6

2.52.62.72.72.83.03.13.43.63.63.83.83.6

2.52.62.72.72.83.03.23.53.63.73.83.73.5

2.52.62.72.72.83.03.23.53.63.73.83.6n/a

2.52.62.62.72.83.03.13.43.63.73.83.7n/a


198519861987

19881989

19901991

199219931994

199519961997

1.40.06.91.91.99.92.29.95.02.92.81.4

-4.0

2.14.13.20.05.09.01.6

10.34.91.93.20.0

-4.5

4.24.02.61.94.36.54.4

10.13.31.92.7

-2.7-3.2

4.25.30.61.94.94.17.9

10.01.94.22.2

-5.3n/a

3.03.43.31.44.17.34.0

10.03.82.72.7

-1.3n/a


21

Table A-i 1

RETAIL TRADE JOBS

YearFirst


ThirdQuarter



198519861987

19881989

19901991

1992199319941995

19961997

95.196.6

100.8104.7109.0112.0113.8113.6110.0110.4113.7114.4113.7

95.996.5

102.4106.8110.1113.0112.5113.2110.7110.1113.2113.0112.6

96.199.4

103.9107.0110.6113.7114.3113.7111.2111.8114.5113.2112.1

97.3101.2106.4108.5

113.3115.3114.3112.4112.4114.9115.7114.7

n/a

96.198.4

103.4106.7110.7113.5113.7113.2111.1111.8114.3113.8

n/a


198519861987

198819891990

199119921993

19941995

19961997

5.91.64.33.94.12.71.6

-0.1-3.20.33.00.6

-0.6

4.90.66.24.33.02.6

-0.40.6

-2.2-0.62.8

-0.2-0.4

3.53.44.62.93.32.80.5

-0.5-2.20.52.4

-1.2-1.0

1.64.05.12.04.41.8

-0.8-1.60.02.20.7

-0.9n/a

3.92.45.03.33.72.50.2

-0.4-1.90.62.2

-0.4n/a


22

Table A-i2

WHOLESALE TRADE JOBS

YearFirst


ThirdQuarter



19851986

198719881989

19901991

1992199319941995

1996

1997

19.319.220.020.221.521.922.722.722.021.521.621.521.5

19.519.420.420.621.922.322.622.622.121.521.521.421.6

19.819.720.521.121.922.822.722.421.821.621.521.521.9

19.720.020.721.122.222.922.922.421.821.521.621.6

n/a

19.619.620.420.721.922.522.722.521.921.5’21.621.5•n/a


1985

1986

198719881989

1990

199119921993

19941995

19961997

3.0-0.54.31.16.32.33.5

-0.1-3.2-2.00.4

-0.5-0.2

2.6-0.75.00.96.42.01.30.1

-2.1-2.6-0.2-0.50.9

4.0-0.33.82.94.14.1

-0.6-1.4-2.6-1.1-0.2-0.21.9

3.11.43.82.04.93.5

-0.1-2.3-2.7-1.40.5

-0.2n/a

3.20.04.21.75.43.01.0

-0.9-2.6-1.90.1-0.5n/a


23

Table A-13

FINANCE, INSURANCE AND REAL ESTATE JOBS

YearFirst


ThirdQuarter



1985198619871988

19891990

1991199219931994

1995

19961997

31.532.633.534.034.735.937.337.238.338.737.237.036.1

31.932.833.834.334.936.837.337.738.838.637.036.935.9

32.033.533.834.635.237.337.538.339.538.537.336.935.8

32.233.833.834.836.237.337.538.639.237.837.136.6

n/a

31.933.233.734.435.236.837.437.939.038.437.236.8


198519861987

19881989

199019911992

19931994199519961997

-1.53.52.71.61.93.63.7

-0.23.11.0

-3.9-0.7-2.2

-0.12.73.11.51.95.31.31.32.8

-0.6-4.0-0.3-2.8

0.54.41.12.41.65.90.62.03.3

-2.6-3.2-1.1-2.8

1.65.0

-0.13.13.93.0‘ 0.62.81.6

-3.5-1.9-1.3n/a

0.13.91.72.22.34.41.51.52.7

-1.4-3.3-0.9n/a


24

Table A-b4

SERVICES AND MISCELLANEOUS JOBS

YearFirst


ThirdQuarter

FourthQuarter

Annual


198519861987

198819891990

19911992

199319941995

1996

1997

110.7117.3123.6130.8141.5152.4157.4162.9163.1162.6165.1165.4168.4

110.5118.4125.2131.4143.4153.3157.1163.1163.1163.4164.6165.3168.3

113.8118.8126.8133.6146.6154.9160.2164.9161.9164.2164.1166.2168.6

115.7120.4130.6137.3150.0157.0161.7163.4162.1165.3164.4167.5

n/a

112.6118.7126.5133.3145.4154.4159.1163.6162.6163.9164.5166.1

n/a


19851986

198719881989

19901991

199219931994199519961997

2.96.05.45.88.27.73.33.50.1

-0.31.50.21.8

1.77.15.75.09.26.92.53.80.00.20.70.41.8

6.24.56.75.49.85.63.42.9

-1.81.4

-0.11.31.4

6.64.18.45.19.34.63.01.0

-0.82.0

-0.61.9n/a

4.35.46.65.39.16.23.02.8

-0.60.80.41.0n/a


25

Table A-15

HOTEL JOBS

YearFirst


ThirdQuarter



19851986

19871988

19891990

1991199219931994

199519961997

29.429.130.533.736.837.640.541.538.637.738.238.239.6

28.929.230.533.536.738.539.841.338.137.937.538.139.1

28.829.631.234.437.138.841.340.837.738.137.738.538.7

28.929.232.835.737.540.241.540.237.638.337.739.0

n/a

29.029.231.334.337.038.840.841.038.038.037.838.5

n/a


19851986

19871988

19891990

1991199219931994199519961997

4.1-1.04.8

10.39.42.07.82.4

-6.8-2.41.10.13.7

1.51.04.79.99.35.03.53.8

-7.9-0.6-1.01.62.7

3.02.85.5

10.18.04.66.4

-1.2-7.71.2

-1.22.30.6

1.50.8

12.59.04.97.23.4

-3.2-6.62.1

-1.73.4n/a

2.50.96.99.87.94.75.20.4

-7.30.1

-0.71.9n/a


26

Table A-16

FEDERAL GOVERNMENT JOBS

YearFirst


ThirdQuarter

FourthQuarter

Annual


19851986

19871988

1989

199019911992199319941995

19961997

32.332.132.033.833.833.933.433.731.831.331.031.330.6

32.332.032.733.733.935.033.533.532.031.631.231.530.7

32.432.032.933.834.034.134.433.031.931.231.231.530.8

32.532.233.434.1

34.233.734.132.931.730.930.930.9

n/a

32.432.132.833.834.034.133.933.331.831.331.131.3n/a


1985

19861987

19881989199019911992199319941995

19961997

1.7-0.4-0.35.40.20.1

-1.30.7

-5.6-1.4-1.11.0

-2.4

1.2-1.02.22.90.73.1

-4.20.0

-4.5-1.3-1.21.0

-2.5

0.7-1.33.02.50.60.21.1

-4.0-3.6-2.0-0.31.0

-2.2

-0.3-0.83.62.00.4

-1.51.3

-3.6-3.7-2.3-0.30.2n/a

0.8-0.92.13.20.50.5

-0.8-1.8-4.3-1.7-0.70.6n/a


27

Table A-17

STATE GOVERNMENT JOBS

YearFirst


ThirdQuarter

FourthQuarter

Annual


1985

1986

19871988

1989199019911992

19931994

19951996

1997

48.549.850.952.454.356.961.864.466.066.567.664.365.1

48.850.251.753.555.359.962.865.768.068.268.766.166.5

43.344.545.547.849.051.353.455.556.858.055.855.157.1

48.950.051.453.755.660.263.064.866.167.363.863.5

n/a

47.448.649.951.853.557.160.362.664.265.064.062.3


19851986

1987

1988198919901991

1992199319941995

19961997

1.52.62.32.83.64.88.64.22.60.71.6

-4.81.2

1.32.73.13.43.48.34.94.53.60.20.7

-3.70.7

2.42.82.15.12.54.84.13.92.32.2

-3.9-1.33.7

2.32.32.84.63.58.14.72.82.01.8

-5.2-0.4n/a

1.82.62.63.93.36.65.63.82.71.2

-1.6-2.7n/a


28

Table A-18

LOCAL GOVERNMENT JOBS

YearFirst


ThirdQuarter

FourthQuarter

Annual


19851986

1987

198819891990

19911992199319941995

19961997

12.712.612.813.413.613.914.314.715.215.416.316.316.4

12.612.713.013.513.814.114.514.915.315.416.316.416.8

16.014.414.514.815.115.215.616.216.216.317.117.518.1

12.712.913.413.713.914.414.715.315.415.416.216.5

n/a

13.513.113.413.914.114.414.815.315.515.616.516.7


198519861987

19881989

199019911992

19931994199519961997

1.2-0.91.74.71.62.03.22.43.41.35.80.30.7

-0.10.12.74.11.92.03.02.72.60.85.60.92.2

8.6-9.80.32.12.11.32.04.00.00.84.62.33.5

-1.11.63.62.60.93.72.44.30.6

-0.25.21.5n/a

2.4-2.72.03.31.62.22.63.41.60.75.41.2n/a


29

Table A-b 9

AGRICULTURE WAGE AND SALARY JOBS

YearFirst


ThirdQuarter

FourthQuarter

Annual


198519861987

198819891990

1991199219931994199519961997

9.89.8

10.09.79.28.88.89.28.88.07.17.26.8

10.59.9

10.59.79.79.49.49.38.38.07.07.26.8

11.210.811.310.510.210.410.29.78.88.57.47.67.2

10.110.010.410.09.49.59.99.08.47.67.87.7n/a

10.410.110.510.09.69.59.69.38.68.07.37.4n/a


19851986

19871988198919901991

199219931994199519961997

1.80.31.6

-2.5-5.2-4.3-0.44.5

-4.8-8.5

-11.40.7

-4.7

-5.0-5.75.7

-7.2-0.5-3.3-0.1-0.3

-10.6-4.0

-13.12.9

-4.9

-5.9-4.04.7-6.9-3.42.6

-2.4-5.0-8.8-3.8

-13.22.7

-4.9

-4.5-1.23.6

-3.7-5.41.13.8

-9.4-7.0-9.42.4

-0.6n/a

-3.6-2.73.9

-5.2-3.6-0.90.2

-2.8-7.8-6.4-8.91.4n/a


30

INCOME AND PRICES

The previous issue of the QuarterlyStatistical and Economic Report notedsignificant growth in Hawaii’s personalincome in the first quarter of the year.Since then, the U.S. Bureau of EconomicAnalysis (BEA) revised its estimate offirst quarter personal income growthdownward to 2.2 percent and estimatedgrowth in the second quarter at 2.1 per-cent over the second quarter of 1996 (ta-ble B-2). Nevertheless, the evidence thatgrowth is distributed more widely acrossincome categories continues to hold.

Overall, Hawaii personal incomerose 2.1 percent in the first half of 1997relative to the first half of 1996 (tableB-l). While modest, these rates ofgrowth exceed those experienced by thestate in each quarter of last year.

The wage and salary component ofpersonal income was 2.5 percent higherin first quarter 1997 over first quarter of1996 (table B-3). Second-quarter wagesand salaries were 1.7 percent higher thanin the year-earlier period. These twoquarters appear to reverse the relativelylow rates of growth in this importantcomponent since the third quarter of1993.

Other components of personal in-come showing growth include dividends,interest, and rent—up 4.5 percent in thesecond quarter of 1997 over the year-earlier quarter—and transfer payments—

up 3.7 percent over the same period (ta-bles B-6 and B-7).

Other labor income (including em-ployer contributions to private benefitplans and certain fees) fell by 2.6 percentin the second quarter, continuing a trendfrom the first quarter of 1995 (tableB-4). Proprietors’ income also fellslightly by 0.7 percent from the secondquarter of 1996 to the second quarter of1997 (table B-5). Growth in this sourceof income has been essentially flat sincethe fourth quarter of 1995.

By sector, farm earnings grew by 3.3percent in the second quarter relative tothe second quarter of 1996, whereasnonfarm income grew by 1.0 percent.For the first half of 1997, farm earningswere 2.7 percent higher than in the pre-vious year and nonfarm earnings were1.4 percent higher (table B-i).

In the nonfarm sector, the highestgrowth rates for the first half of 1997came in services (4.1 percent) and trans-portation, communications, and utilities(3.7 percent). The largest declines inearnings came in mining (-17.9 percent),construction (-7.6 percent), and manu-facturing (-3.2 percent). Earningsgrowth also appeared in the governmentsector, led by federal military (3.1 per-cent) and federal civilian (3.1 percent)earnings.

31

Table B-b

PERSONAL INCOME FOR HAWAII BY MAJOR SOURCES

Series 1996 1st Half 1997

Percentage Changefrom Previous Year

1996 1sf Half 1997

Derivation of Personal IncomeWage and salary disbursements 16,974 17,245 0.9 2.1

Plus: Other labor income 1,804 1,772 -3.7 -2.4Plus: Proprietors’ income 2,466 2,464 0.5 -0.6

Total earnings 21,243 21,481 0.5 1.4Less: Personal contrib. for social insur. 1,366 1,381 0.2 1 .2

Netearnings 19,877 20,100 0.5 1.4Plus: Dividends, interest, rent 5,321 5,495 4.2 3.8Plus: Transfer payments 4,874 5,027 3.6 3.3

Personal income 30,072 30,622 1.6 2.1Total Earnings by Industry 21,243 21,481 0.5 1 .4

Farm 184 188 14.1 2.7Nonfarm 21,059 21,293 0.4 1.4

Private 15,742 15,860 0.5 1.0Agriculture forestry, fish.,other 142 147 -7.6 1.4Mining 19 16 -14.7 -17.9Construction 1,460 1,374 -13.0 -7.6Manufacturing 793 765 -0.6 -3.2Transp., comm., utilities 1,746 1,804 1.8 3.7Wholesaletrade 791 775 -1.5 -1.6Retailtrade 2,621 2,648 -1.2 1.0Finance, insur., real estate 1,757 1,702 10.5 -2.8Services 6,415 6,630 2.7 4.1

Government & govt. enterprises 5,317 5,434 0.2 2.6Federalcivilian 1,221 1,257 0.2 3.1Federalmilitary 1,584 1,636 5.0 3.3State and local 2,512 2,542 -2.7 1.9

Source: U.S. Department of Commerce, Bureau of Economic Analysis.

32

Table B-b

PERSONAL INCOME FOR HAWAII BY MAJOR SOURCES

Percentage Change

Series 1996 1st Half 1997

from Previous Year

1996 1st Half 1997

Derivation of Personal IncomeWage and salary disbursements 16,974 17,245 0.9 2.1

Plus: Other labor income 1,804 1,772 -3.7 -2.4Plus: Proprietors’ income 2,466 2,464 0.5 -0.6

Total earnings 21,243 21,481 0.5 1.4Less: Personal contrib. for social insur. 1,366 1,381 0.2 1 .2

Netearnings 19,877 20,100 0.5 1.4Plus: Dividends, interest, rent 5,321 5,495 4.2 3.8Plus: Transfer payments 4,874 5,027 3.6 3.3

Personal income 30,072 30,622 1.6 2.1Total Earnings by Industry 21,243 21,481 0.5 1 .4

Farm 184 188 14.1 2.7Nonfarm 21,059 21,293 0.4 1.4

Private 15,742 15,860 0.5 1.0Agriculture forestry, fish.,other 142 147 -7.6 1.4Mining 19 16 -14.7 -17.9Construction 1,460 1,374 -13.0 -7.6Manufacturing 793 765 -0.6 -3.2Transp., comm., utilities 1,746 1,804 1.8 3.7Wholesaletrade 791 775 -1.5 -1.6Retailtrade 2,621 2,648 -1.2 1.0Finance, insur., real estate 1,757 1,702 10.5 -2.8Services 6,415 6,630 2.7 4.1

Governnient&govt. enterprises 5,317 5,434 0.2 2.6Federalcivilian 1,221 1,257 0.2 3.1Federal military 1,584 1,636 5.0 3.3Stateandlocal 2,512 2,542 -2.7 1,9

Source: U.S. Department of Commerce, Bureau of Economic Analysis.

Table B-2

PERSONAL INCOME

YearFirst


ThirdQuarter

FourthQuarter

Annual

In Millions of Dollars

1985198619871988

198919901991

1992

1993199419951996

1997

14,79615,81016,85118,55820,48222,93624,86926,36527,57527,94129,35229,90230,549

14,96116,01517,18619,07620,99223,69824,99526,76227,80428,24329,66930,06730,694

15,18116,34317,53419,37921,44424,37625,22625,16927,61928,63929,63330,150

n/a

15,47516,59318,06820,02822,07824,95625,58027,55827,66629,05429,71630,169

n/a

15,10316,19017,41019,26021,24923,99225,16826,46427,66628,46929,59330,072

n/a


1985

19861987

198819891990

1991199219931994199519961997

9.36.96.6

10.110.412.08.46.04.61.35.01.92.2

7.47.07.3

11.010.012.95.57.13.91.65.01.32.1

7.47.77.3

10.510.713.73.5

-0.29.73.73.51.7n/a

8.37.28.9

10.810.213.02.57.70.45.02.31.5n/a

7.47.27.5

10.610.312.94.95.14.52.93.91.6n/a

Note: n/a = not available.Source: U.S. Department of Commerce, Bureau of Economic Analysis.

33

Table B-3

TOTAL WAGES AND SALARIES

YearFirst


ThirdQuarter

FourthQuarter

Annual


1985

198619871988198919901991199219931994199519961997

8,9879,557

10,38211,42012,54813,93515,14116,16716,60116,69116,78416,81417,227

9,1229,668

10,63211,71212,90314,34915,25316,34116,85116,70116,89116,97817,263

9,2759,882

10,88211,92213,24514,70315,48116,40416,60816,77816,81017,051

n/a

9,45510,15811,16612,27313,61215,08415,69316,72716,52516,87116,78717,052

n/a

9,2109,816

10,76611,83213,07714,51815,39216,41016,64616,76016,81816,974

n/a


1985198619871988198919901991199219931994199519961997

7.06.38.6

10.09.9

11.18.76.82.70.50.60.22.5

5,96.0

10.010.210.211.26.37.13.1

-0.91.10.51.7

7.26.5

10.19.6

11.111.05.36.01.21.00.21.4n/a

8.57.49.99.9

10.910.84.06.6

-1.22.1

-0.51.6n/a

6.76.69.79.9

10.511.06.06.61.40.70.30.9n/a


34

Table B-4

OTHER LABOR INCOME

YearFirst


ThirdQuarter

FourthQuarter

Annual


19851986

19871988

198919901991199219931994199519961997

826885998

1,0581,1641,3671,5661,7421,8891,9551,8991,8151,776

827923

1,0131,0781,2201,4201,6121,7581,8931,9351,8921,8141,767

841960

1,0131,0961,2741,4761,6601,7791,8891,9521,8621,802

n/a

859991

1,0401,1321,3231,5411,6901,7891,8701,9521,8401,783

n/a

838940

1,0161,0911,2451,4511,6321,7671,8851,9491,8731,804

n/a


1985198619871988198919901991199219931994199519961997

11.07.1

12.86.0

10.017.414.611.28.43.5

-2.9-4.4-2.1

7.011.69.86.4

13.216.413.5

9.17.72.2

-2.2-4.1-2.6

8.414.15.58.2

16.215.912.57.26.23.3

-4.6-3.2n/a

10.615.44.98.8

16.916.59.75.94.54.4-5.7-3.1n/a

5.612.18.17.4

14.116.512.58.36.73.4

-3.9-3.7n/a


35

Table B-5

PROPRIETORS’ INCOME

YearFirst


ThirdQuarter

FourthQuarter

Annual


1985198619871988198919901991199219931994199519961997

1,1311,1871,2641,5821,7892,0412,0552,1722,2892,3002,4472,4722,462

1,1261,1931,3011,7581,7722,0952,0832,2002,2802,3472,4642,4842,466

1,1271,2651,3531,7241,7942,1582,0631,9542,3132,3842,4492,456

n/a

1,1481,2651,4031,8201,8752,1682,0362,2772,3672,4222,4502,450

n/a

1,1331,2281,3301,7211,8082,1162,0592,1512,3122,3632,4532,466

n/a


1985198619871988198919901991199219931994199519961997

13.35.06.5

25.213.114.10.75.75.40.56.41.0

-0.4

2.76.09.1

35.10.8

18.2-0.65.63.62.95.00.8

-0.7

-2.612.27.0

27.44.1

20.3-4.4-5.318.4

3.12.70.3n/a

-2.810.210.929.73.0

15.6-6.111.84.02.31.20.0n/a

18.88.38.4

29.45.0

17.0-2.74.47.52.23.80.5n/a


36

Table B-6

DIVIDENDS, INTEREST, AND RENT

YearFirst


ThirdQuarter

FourthQuarter

Annual


1985198619871988198919901991199219931994199519961997

2,5332,7542,7483,0113,4313,7154,0554,1284,2704,2245,0175,2985,464

2,5512,7742,7703,0303,5453,8514,0534,2094,1844,4025,1035,2875,525

2,5722,7702,8243,1223,5224,0164,0742,6404,1354,5925,1095,339

n/a

2,6342,7302,9923,2763,5694,0834,1464,1884,1424,7855,1975,361

n/a

2,5732,7572,8343,1103,5173,9164,0823,7914,1834,5015,1075,321

n/a


1985198619871988198919901991199219931994199519961997

21.08.7

-0.29.6

13.98.39.21.83.4

-1.118.85.63.1

18.48.7

-0.19.4

17.08.65.23.8

-0.65.2

15.93.64.5

14.77.71.9

10.612.814.0

1.4-35.256.611.111.34.5n/a

15.33.69.69.58.9

14.41.51.0

-1.115.58.63.2n/a

6.67.22.89.7

13.111.44.2

-7.110.37.6

13.54.2n/a


37

Table B-7

TRANSFER PAYMENTS

YearFirst


ThirdQuarter

FourthQuarter

Annual


1985198619871988198919901991199219931994199519961997

2,0162,1552,2382,3732,5432,9853,2703,4483,8704,1334,5674,8625,002

2,0332,1882,2612,4022,5723,1083,2133,5553,9304,2044,6894,8725,052

2,0662,2082,2692,4332,6523,1803,1803,6953,9854,2854,7654,872

n/a

2,0832,2052,2892,4712,7663,2633,2603,8694,0524,3814,8014,889

n/a

2,0502,1892,2642,4202,6333,1343,2313,6423,9594,2514,7064,874


1985198619871988198919901991199219931994199519961997

6.06.93.96.07.2

17.49.55.4

12.26.8

10.56.52.9

6.37.63.36.27.1

20.83.4

10.610.57.0

11.53.93.7

7.46.92.87.29.0

19.90.0

16.27.87.5

11.22.2n/a

6.85.93.88.0

11.918.0-0.118.74.78.19.61.8n/a

6.76.83.46.98.8

19.03.1

12.78.77.4

10.73.6n/a


38

Table B-8

CONTRIBUTION TO SOCIAL INSURANCE

YearFirst


ThirdQuarter



1985198619871988198919901991199219931994199519961997

696727778886993

1,1061,2181,2931,3431,3611,3631,3601,382

698731792905

1,0201,1261,2181,3011,3341,3451,3701,3681,380

700741808919

1,0441,1571,2321,3021,3111,3521,3621,370

n/a

705756822944

1,0681,1831,2441,2921,2891,3581,3591,366

n/a

700739800914

1,0311,1431,2281,2971,3191,3541,3641,366

n/a


1985198619871988198919901991199219931994199519961997

15.04.57.0

13.912.111.410.16.23.91.30.1

-0.21.6

12.24.78.3

14.312.710.48.26.82.50.81.9

-0.10.9

12.55.99.0

13.713.610.86.55.70.73.10.70.6n/a

14.17.28.7

14.813.110.85.23.9

-0.25.40.10.5n/a

8.25.68.3

14.212.910.87.45.61.72.60.70.2n/a


39

Table B-9

CONSUMER PRICE INDEX, ALL URBAN CONSUMERS (CPI-U), AND SELECTEDITEMS, FOR U.S. AND HONOLULU: 1985 to 1996

[1982-84=100]

.

Period U.S.

Honolulu

All ItemsFood&

Beverages.

HousingApparel

& Upkeep.

Transportation .Medical Care .

Entertainment

198519861987198819891990199119921993199419951996

1st half2nd ha/f

19971st Half

b07.6109.6113.6118.3124.0130.7136.2140.3144.5148.2152.4156.9155.8157.9

159.9

106.8109.4114.9121.7128.7138.1148.0155.1160.1164.5168.1170.7170.5171.0

172.1

107.8110.0114.1120.3128.1137.8145.9148.5152.9153.4156.8156.6156.9156.3

159.4

106.0108.4115.0123.0131.1141.5152.8161.7166.6177.6174.7176.8176.8176.8

177.3

99.699.8

102.5106.8104.3107.0110.5114.2116.5118.7117.5118.5120.0116.9

119.8

104.9105.2109.7116.1123.9131.1139.3147.4150.5156.4162.4167.0166.3167.7

167.8

113.2122.3127.9132.5139.3154.2171.3182.6197.4206.0209.8215.0214.9215.0

215.6

111.9113.2118.6122.9124.3128.4134.3136.3138.4142.3144.2147.8147.9147.7

148.3


198519861987198819891990199119921993199419951996

1st half2nd half

19971st Half

3.61.93.64.14.85.44.23.03.02.62.82.92.83.1

2.6

3.22.45.05.95.87.37.24.83.22.72.21.52.20.9

0.9

4.12.03.75.46.57.65.91.83.00.32.2

-0.10.3

-0.5

1.6

2.82.36.17.06.67.98.05.83.06.61.81.22.00.5

0.3

-0.60.22.74.2

-2.32.63.33.32.01.9

-1.00.81.60.0

-0.2

1.90.34.35.86.75.86.35.82.13.93.82.83.91.7

0.9

5.58.04.63.65.1

10.711.16.68.14.41.82.53.41.5

0.3

7.31.24.83.61.13.34.61.51.52.81.32.53.51.5

0.3Note: Hono,ulu CPI is normally released twice a year in February and August.Source: U.S. Department of Labor, Bureau of Labor Statistics.

40

TAX BASE AND REVENUES

General fund tax revenue declined inthe third quarter of 1997 relative to theyear earlier. To a large degree, this de-cline is explained by technical factorsthat affected the two major revenuesources: the general excise tax and theindividual income tax.

General fund tax revenues fell 4.6percent in the third quarter of 1997 rela-tive to the third quarter of 1996 (tableC-2). Through September 1997, generalfund revenues were 2.9 percent lowerthan in the same period in 1996. As dis-cussed below, two technical factorsraised the revenues in 1996, therebylowering the current year’s growth rates.In the absence ofthese factors, it is esti-mated that tax revenues would have beenflat over the period.

The general excise tax (GET) ac-counts for more than halfof general fundrevenues. GET revenues were 5.9 per-cent lower in the third quarter of 1997compared with the third quarter of 1996(table C-3). However, in 1996 GETrevenues were unusually large due to theconversion to electronic fund transfers—approximately $30 million according tothe Department ofTaxation. This makes1997 levels look small by comparison.

Individual income tax receipts, thesecond-largest component of generalfund revenues, fell by 2.6 percent in thethird quarter of 1997 from the same pe-riod in 1996 (table C-4). The pattern ofindividual income tax receipts has beennegatively affected by the reduction inthe maxii~numwithholding rate from 10to 8 percent that began in October 1996.After this point, year-to-year compari-

sons will be more meaningful becausethey will be on similar bases.

Third quarter net corporate incometax revenues expanded by 6.9 percentover the third quarter of 1997 (tableC-5). This marks the fourth consecutivequarter of revenue expansion from thissource. However, as in other states, cor-porate income tax revenues are a rela-tively small share of general fund reve-nue.

The change to electronic filing forthe GET also affects the data for the as-sociated tax bases. In general, 1997growth rates are negative because the1996 levels were inflated by the techni-cal change. Thus, the GET base fell 7.3percent from the third quarter of 1996 tothe third quarter of 1997 (table C-7). Arough assessment of the technicalchange’s impact can be made by ex-cluding 1996 data and calculating theannual, compound growth from 1995through 1997. On this basis, looking atthe first three months each year, the GETbase grew at a 1.4 percent annual com-pound rate from 1995 through 1997.

This adjustment also affects thecomponents of the GET base. For ex-ample, the retailing base declined 9.2percent from the third quarter of 1996 tothe third quarter of 1997 (table C-8), butthe base has grown at a 1.9 percent an-nual compound rate from the first ninemonths of 1995 through the same periodin 1997. Similarly, the hotel base showsa 10.5 percent drop from the third quar-ter of 1996 to the third quarter of 1997(table C-i 1), but the base has grown atan annual compound rate of 7.1 percent

41

from the first nine months of 1995through the same period in 1997.

On the other hand, other componentsof the GET base have not expanded.The services component was down by 10percent in the third quarter of 1997 rela-tive to the year earlier quarter, and it hasgrown at just over 0.5 percent on an an-

nual compounded basis from the firstthree quarters of 1995 through the firstthree quarters of 1997 (table C-9).Similarly, the contracting base fell 14.3percent in the third quarter of 1997 com-pared to the same period in 1996 and thefirst nine months of 1997 is lower thanthe first nine months of 1995 (tableC- 10).

~L~uI~#ui~i ~

Annual Percentage Change in General Fund RevenueQuarterly

25

20 ~~.___________________ ______ ______ ______

15 _________________ _______________________

10a,(5

I:-5

-10

-151 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3

1990 1991 1992 1993 1994 1995 1996 1997

42

Table C-i

GENERAL FUND TAX REVENUES AND MAJOR COMPONENTS

earGeneral Exciseand Use Tax

Net IndividualIncome Tax 1/

Net CorporateIncome Tax 2/

Tax RevenuesDistributed toState General

Fund

In Thousands of Dollars

1990

199119921993199419951996

1997 1 Qtr.2Qtr.

3Qtr.

1,250,2041,287,8181,299,8131,308,7981,347,9431,386,6851,469,766

365,069366,563356,533

743,114900,963922,205951,403

1,003,477918,809995,456

227,409213,468269,597

86,26870,56842,73622,23734,22637,33751,243

18,05532,33010,594

2,246,7522,397,2892,523,6722,555,9142,672,2932,614,7132,799,972

688,683676,222704,749


1991 3.0 21.2 -18.2 6.71992 0.9 2.4 -39.4 5.31993 0.7 3.2 -48.0 1.31994 3.0 5.5 53.9 4.61995 2.9 -8.4 9.1 -2.21996

1997 1 Qtr.2Qtr.3Qtr.

6.0

-5.62.6

-5.9

8.3

-6.1-2.0-2.6

37.2

16.914.16.9

7.1

-5.01.3

-4.6Notes: This series represents data as reported by the Department of raxation, without adjustment.

1/ Declaration of estimated taxes, plus payments with returns, plus withholding tax onwages, less refunds.2/ Declaration of estimated taxes, plus payments with returns, less refunds.

Source: Hawaii State Department of Taxation.

43

Table C-2

STATE GENERAL FUND TAX REVENUES

YearFirst


ThirdQuarter



1985198619871988198919901991199219931994199519961997

315.1347.1400.6466.1554.2596.0654.2629.7646.2681.3671.4725.3688.7

344.4393.2461.7514.6593.1530.5600.8638.9617.4648.0577.8667.7676.2

344.7377.6430.0483.6441.0531.3557.6640.3674.2703.9706.0739.0704.7

321.6368.6438.9484.9568.7589.0584.7614.8618.1639.1659.5668.0

n/a

1,325 81,486.51,731.21,949.22,157.02,246.82,397.32,523.72,555.92,672.32,614.72,800.0

n/a


1985198619871988198919901991199219931994199519961997

7.410.215.416.418.97.59.8

-3.72.65.4

-1.58.0

-5.0

9.814.217.411.415.3

-10.613.36.3

-3.45.0

-10.815.6

1.3

8.69.6

13.912.5-8.820.55.0

14.85.34.40.34.7

-4.6

1.814.619.110.517.33.6

-0.75.20.53.43.21.3n/a

6.912.116.512.610.74.26.75.31.34.6

-2.27.1n/a

Note: n/a = not available.Source: Hawaii State Department of Taxation.

44

Table C-3

GENERAL EXCISE & USE TAX REVENUES

YearFirst


ThirdQuarter



1985

1986

198719881989199019911992199319941995

19961997

174.1192.0216.7240.5270.8313.1346.0338.3332.7353.4363.1386.7365.1

178.7200.0214.9242.0270.7308.6304.2318.8327.5330.3335.9357.4366.6

176.8198.3219.3241.3272.6314.3335.7325.3332.7345.8348.0379.0356.5

177.9187.6218.1242.2282.3314.2301.9317.3315.9318.5339.6346.6

n/a

707.4778.0869.0966.0

1096.51250.21287.81299.81308.81347.91386.71469.8

n/a


19851986

19871988198919901991199219931994199519961997

5.410.312.911.012.615.610.5-2.2-1.76.22.86.5

-5.6

2.811.97.4

12.611.914.0-1.44.82.70.81.76.42.6

6.712.210.610.013.015.36.8

-3.12.33.90.78.9

-5.9

7.65.5

16.211.016.611.3-3.95.1

-0.50.86.62.1n/a

5.610.011.711.213.514.03.00.90.73.02.96.0n/a

Notes: Manufactured goods shipped out of state have been exempted from the generalexcise tax by Act 239, SLH 1987, effective January 1, 1988.n/a = not available.

Source: Hawaii State Department of Taxation.

45

Table C-4

NET INDIVIDUAL INCOME TAX REVENUES

YearFirst


ThirdQuarter



19851986

1987

19881989

19901991199219931994199519961997

108.6125.7134.4159.3205.1201.6252.6228.8233.9236.4224.6242.3227.4

100.399.8

143.6170.0211.0107.6186.2216.0211.7220.3154.3217.8213.5

125.7129.1138.8169.0176.7216.0240.4244.0263.0281.5277.1276.9269.6

111.8135.6157.9182.5209.2217.9221.7233.4242.9265.3262.8258.5

n/a

446.4490.2574.7680.8802.0743.1901.0922.2951.4

1,003.5918.8995.5


1985198619871988198919901991

199219931994199519961997

-3.215.86.9

18.528.7-1.725.3-9.42.21.1

-5.07.9

-6.1

23.3-0.543.818.424.1

-49.073.116.0-2.04.1

-30.041.1-2.0

12.32.77.5

21.84.6

22.211.3

1.57.87.0

-1.6-0.1-2.6

3.121.216.515.614.64.21.75.34.19.2

-0.9-1.6n/a

7.89.8

17.218.517.8-7.321.22.43.25.5

-8.48.3n/a


46

Table C-5

NET CORPORATE INCOME TAX REVENUES

YearFirst


ThirdQuarter



198519861987

1988198919901991199219931994199519961997

7.57.8

13.618.123.522.523.717.46.5

10.512.915.518.1

21.917.226.620.824.727.936.415.913.426.219.828.332.3

11.614.917.916.218.829.111.111.213.5

9.112.09.9

10.6

3.16.49.27.95.76.8

-0.6-1.7

-11.2-11.6-7.4-2.5n/a

44.146.267.363.172.786.370.642.722.234.237.351.2

n/a


1985

19861987

1988198919901991199219931994199519961997

-21.53.5

75.332.929.7-4.35.4

-26.5-62.559.923.120.116.9

49.2-21.755.0

-21.618.512.930.3

-56.4-15.796.0

-24.443.014.1

10.729.019.8-9.115.655.0

-61.90.6

21.1-32.431.7

-17.66.9

-37.7105.843.9

-14.1-27.819.2

-109.0-181.7-549.9

-3.536.266.7n/a

11.14.9

45.6-6.215.218.7

-18.2-39.4-48.053.9

9.137.2

n/aNotes: Declaration of estimated taxes plus payments with returns less refunds.

n/a = not available.Source: Hawaii State Department of Taxation.

47

Table C-6

TRANSIENT ACCOMMODATION TAX REVENUES

YearFirst


ThirdQuarter

FourthQuarter

Annual


1987

198819891990

1991199219931994199519961997

7.218.520.822.420.920.920.922.927.234.232.0

16.319.122.021.919.121.220.719.827.030.133.8

16.217.918.421.320.019.417.222.326.632.431.9

13.615.219.717.917.919.416.721.624.827.2

n/a

53.270.781.083.577.980.875.486.5

105.6124.0

n/a


1988 1/

198919901991199219931994199519961997

155.912.77.4

-6.4-0.10.09.6

18.825.6-6.4

17.215.3-0.4

-12.810.8-2.5-4.436.611.712.1

10.73.1

15.5-6.0-3.3

-11.429.719.521.8-1.5

12.429.4-9.3-0.18.6

-13.929.215.09.9n/a

32.814.63.0

-6.63.7

-6.714.722.117.4

n/aNotes: n/a = not available.

1 / Tax collection for this category began in 1987.Source: Hawaii State Department of Taxation.

48

Table C-7

GENERAL EXCISE & USE TAX BASE

YearFirst


ThirdQuarter



1985198619871988

19891990

199119921993

1994199519961997

6,0716,4767,0637,9008,875

10,09911,53211,22311,17711,53911,87612,32411,977

6,1696,6897,0357,8318,8029,933

10,12510,65011,59610,85911,01211,77711,730

6,0046,7427,0507,7828,823

10,08911,28510,86911,01411,34611,44812,53611,621

6,0816,3847,1638,0459,276

10,34010,19010,50710,50010,77411,24111,700

n/a

24,32526,29128,31131,55835,77640,46143,13243,24944,28744,51845,57748,337

n/a


198519861987

1988

198919901991

199219931994199519961997

4.56.79.1

11.912.313.814.2-2.7-0.43.22.93.8

-2.8

2.08.45.2

11.312.412.8

1.95.28.9

-6.41.46.9

-0.4

1.512.34.6

10.413.414.311.9-3.7

1.33.00.99.5

-7.3

4.65.0

12.212.315.311.5-1.53.1

-0.12.64.34.1n/a

3.18.17.7

11.513.413.16.60.32.40.52.46.1n/a


49

Table C-8

RETAILING TAX BASE

YearFirst


ThirdQuarter

FourthQuarter

Annual


19851986

198719881989

19901991199219931994199519961997

2,148.02,371.02,393.02,654.03,017.03,320.03,659.03,668.03,617.03,848.03,932.04,206.54,027.0

2,102.02,337.02,277.02,613.02,814.03,123.03,068.03,282.03,395.03,527.03,576.03,826.83,917.0

2,137.02,330.02,374.02,573.02,884.03,169.03,525.03,484.03,594.03,697.03,846.04,247.43,855.5

2,112.02,202.02,405.02,545.02,893.03,214.03,146.03,411.03,370.03,496.03,697.03,810.8

n/a

8,499.09,240.09,449.0

10,385.011,608.012,826.013,398.013,845.013,976.014,568.015,051.016,091.4

n/a


1985

19861987198819891990

1991199219931994199519961997

5.610.40.9

10.913.710.010.20.2

-1.46.42.27.0

-4.3

2.711.2-2.614.87.7

11.0-1.87.03.43.91.47.02.4

7.89.01.98.4

12.19.9

11.2-1.23.22.94.0

10.4-9.2

3.14.39.25.8

13.711.1-2.18.4

-1.23.75.73.1n/a

4.88.72.39.9

11.810.54.53.30.94.23.36.9n/a


50

Table C-9

SERVICES TAX BASE

!Year I

FirstQuarter

SecondQuarter

ThirdQuarter

FourthQuarter

Annual


198519861987

198819891990

19911992199319941995

19961997

592.6660.3713.4774.0905.0

1,020.61,235.41,260.61,233.41,359.61,371.01,372.41,344.7

646.4703.9725.8837.2937.7

1,106.71,229.71,279.81,316.71,300.71,312.01,433.61,392.7

627.9714.2732.6813.6918.8

1,061.91,253.61,284.81,300.41,413.41,342.21,480.31,332.2

614.7705.9724.4862.9937.5

1,087.61,169.51,207.51,242.11,197.21,325.81,331.7

n/a

2,481.72,784.22,896.23,287.73,699.04,276.94,888.25,032.75,092.75,270.85,351.15,618.0

n/a


198519861987

1988198919901991199219931994199519961997

5.711.48.08.5

16.912.821.12.0-2.210.20.80.1

-2.0

4.48.93.1

15.412.018.011.14.12.9

-1.20.99.3

-2.9

4.713.72.6

11.112.915.618.02.51.28.7-5.010.3

-10.0

4.314.82.6

19.18.6

16.07.53.32.9

-3.610.70.4n/a

4.812.24.0

13.512.515.614.3

3.01.23.51.55.0n/a


51

Table C-b

CONTRACTING TAX BASE

YearFirst


ThirdQuarter

FourthQuarter

Annual


198519861987

198819891990

1991199219931994199519961997

257.7394.2450.9544.8640.6870.0

1,126.11,023.1

964.9827.5776.6824.5674.0

311.7468.0484.5587.3757.8922.3

1,043.71,051.5

960.8837.9760.6814.4749.6

364.4497.4521.3601.1795.7

1,108.71,164.5

977.6965.2838.5751.3838.6718.5

434.0448.4546.4754.4918.6

1,102.7999.7960.4912.7818.5845.1807.6

n/a

1,367.71,808.02,003.12,487.63,112.84,003.74,334.14,012.73,803.63,322.33,133.53,285.1

n/a


19851986

19871988198919901991199219931994199519961997

-17.453.014.420.817.635.829.4-9.1-5.7

-14.2-6.26.2

-18.3

-13.850.1

3.521.229.021.713.2

0.7-8.6

-12.8-9.27.1

-8.0

13.736.54.8

15.332.439.35.0

-16.0-1.3

-13.1-10.411.6

-14.3

74.53.3

21.838.121.820.0-9.3-3.9-5.0

-10.33.2

-4.4n/a

10.032.210.824.225.128.68.3-7.4-5.2

-12.7-5.74.8n/a ~


52

Table C-il

HOTEL RENTAL TAX BASE

YearFirst


ThirdQuarter

FourthQuarter

Annual


1985198619871988

198919901991199219931994199519961997

295.5275.5353.2400.6374.6419.8403.5409.1398.4436.8478.4518.0533.8

326.2359.9361.8361.7419.1417.0366.8424.2419.2417.7447.1518.2535.4

246.6297.8346.0328.3341.7377.2395.9406.8355.3421.3434.3548.1490.5

254.0279.5308.4318.2369.7359.0346.7381.6354.0390.6416.7473.5

n/a

1,122.31,212.81,369.41,408.91,505.11,573.01,513.01,621.81,527.01,666.41,776.52,057.8

n/a


1985

198619871988198919901991199219931994199519961997

27.0-6.828.213.4-6.512.1-3.91.4

-2.69.69.58.33.0

18.610.30.50.0

15.9-0.5

-12.015.6-1.2-0.47.0

15.93.3

0.120.816.2-5.14.1

10.45.02.8

-12.718.6

3.126.2

-10.5

10.310.110.33.2

16.2-2.9-3.410.1-7.210.36.7

13.6n/a

14.08.1

12.92.96.84.5

-3.87.2-5.89.16.6

15.8n/a


53

Table C-12

PRODUCING TAX BASE

YearFirst


ThirdQuarter

FourthQuarter

Annual


1985

19861987198819891990

1991199219931994199519961997

77.264.675.081.390.887.684.1

127.5124.9127.7122.3124.2134.7

67.561.870.274.378.779.879.093.7

133.3118.5106.7124.1111.1

60.863.861.471.975.369.576.387.7

117.0116.2120.0108.9135.6

57.360.967.670.781.680.462.599.899.7

104.7108.5121.8

n/a

262.8251.0274.2298.3326.4317.3301.9408.7474.9467.2457.5479.0

n/a


198519861987198819891990

199119921993

1994199519961997

34.1-16.316.28.5

11.6-3.5-4.051.5-2.02.3

-4.21.58.5

6.9-8.613.85.85.91.4

-1.018.642.2

-11.1-10.016.3

-10.4

-4.04.8-3.817.24.7

-7.79.7

14.933.5-0.63.3

-9.224.5

-2.26.3

11.14.5

15.4-1.5

-22.359.7-0.15.03.6

12.3n/a

8.3-4.59.38.89.4

-2.8-4.935.416.2-1.6-2.14.7n/a


54

Table C-13

4% USE TAX BASE

YearFirst


ThirdQuarter

FourthQuarter

Annual


198519861987

19881989

19901991199219931994199519961997

88.071.088.8

100.4101.8124.1108.2104.4113.0143.3130.6127.2153.9

80.972.772.290.4

168.2134.4120.297.9

128.3106.0117.2110.9123.2

107.773.478.5

144.497.1

132.3121.3

98.194.5

129.9109.2109.199.7

78.962.678.3

114.3110.1111.196.3

119.0101.0105.1104.2131.2

n/a

355.4279.6317.8449.5477.1501.9446.0419.5436.7484.2461.2478.4


1985

198619871988

198919901991199219931994199519961997

-7.8-19.325.113.0

1.421.9

-12.8-3.58.2

26.8-8.8-2.621.0

-9.1-10.1

-0.625.286.0

-20.1-10.5-18.631.0

-17.410.6-5.411.1

46.5-31.9

7.084.0

-32.836.3-8.4

-19.1-3.737.5

-15.9-0.2-8.6

-18.4-20.725.046.1-3.70.9

-13.323.5

-15.24.1-0.926.0

n/a

0.2-21.313.641.5

6.15.2

-11.1-6.04.1

10.9-4.83.7n/a


55

TOURISM

Hawaii’s tourism industry began toshow signs of growth in the third quarterof 1997 compared to the first half of theyear. Reversing relative trends of thelast few years, much of this growth camefrom the westbound market, rather thanthe eastbound market.

Visitor arrivals grew by a modest 0.9percent from the third quarter of 1996through the third quarter of 1997 (tableD-2). This modest growth reversedthree consecutive quarters of year-to-year declines in total arrivals. Throughthe third quarter, however, total arrivalswere still down 0.4 percent relative tothe first three quarters of 1996.

Westbound arrivals, about 57 percentof the total, grew 2.1 percent in the thirdquarter of 1997 relative to the year-earlier quarter (table D-3). This growthalso follows three consecutive quartersof westbound visitor arrival declines ona year-to-year basis.

Eastbound arrivals, by contrast, fell0.7 percent from the third quarter of1996 to the third quarter of 1997 (tableD-4). It may be too soon to attribute thisdecline to the recent financial and eco-nomic problems in southeast Asia. Nev-ertheless, it is unusual that westboundgrowth exceeded eastbound growth.

The average daily visitor census, thenumber of visitors in Hawaii on anygiven day, grew slightly by 0.6 percentin the third quarter of 1997 (table D-5).Most of the increase came from west-bound visitors, but there was also aslight increase in the number of east-bound visitors (table D-6). Given thedecline in eastbound arrivals, this mayindicate that recent reductions in thelength of stay of eastbound visitors areslowing.

The modest growth in tourism is alsoreflected in other data. Hotel jobs in-creased slowly at 0.6 percent in the third.quarter of 1997 relative to the thirdquarter of 1996 (table A-is). Althoughtransient accommodation tax revenuesfell by 1.5 percentage points, these reve-nues were affected by the technicalchange to electronic filing in 1996 (tableC-6). For the first nine months of theyear, transient accommodations taxrevenue has grown at a 10.0 percent an-nual, compound rate from 1995 through1997.

On average, the hotel occupancy ratestood at 76.2 percent in the third quarterof 1997 (table D-7). This was more than2 percentage points lower than the thirdquarter of 1996. The year-to-year de-cline in hotel occupancy rates began inthe second quarter of 1996.

57

Table D-1VISITOR ARRIVALS AND AVERAGE DAILY VISITOR CENSUS

Year

Visitors Staying Overnight or Longer Average Numberof Visitors Present Daily

Westbound Eastbound Total Westbound Eastbound Total

198519861987198819891990199119921993199419951996


3,708,610 1,175,500 4,884,1104,256,390 1,350,590 5,606,9804,204,010 1,595,820 5,799,8304,264,730 1,877,690 6,142,4204,705,320 1,936,500 6,641,8204,719,730 2,251,450 6,971,1804,584,460 2,289,430 6,873,8903,980,120 2,533,760 6,513,8803,764,520 2,359,710 6,124,2303,997,820 2,432,480 6,430,3003,933,110 2,696,070 6,629,1804,004,450 2,831,490 6,835,940

1,038,490 690,210 1,728,700996,240 657,910 1,654,150

1,043,510 782,980 1,826,490

103,857 12,880 116,737118,152 14,800 132,952116,868 17,490 134,358115,739 25,650 141,389128,173 34,190 162,363125,626 36,441 162,067121,172 36,158 157,330113,806 39,526 153,332108,122 40,613 148,735115,281 43,966 159,247113,090 44,109 157,199114,161 44,682 158,843

127,203 43,277 170,480109,350 39,003 148,353111,363 48,823 160,186


198519861987198819891990199119921993199419951996

1997 1 Qtr.2 Qtr.3 Qtr.

-0.3 3.6 0.614.8 14.9 14.8-1.2 18.2 3.41.4 17.7 5.9

10.3 3.1 8.10.3 16.3 5.0

-2.9 1.7 -1.4-13.2 10.7 -5.2-5.4 -6.9 -6.06.2 3.1 5.0-1.6 10.8 3.11.8 5.0 3.1

-1.1 -1.1 -1.1-1.4 -0.1 -0.92.1 -0.7 0.9

-2.3 3.9 -1.613.8 14.9 13.9-1.1 18.2 1.1-1.0 46.7 5.210.7 33.3 14.8-2.0 6.6 -0.2-3.5 -0.8 -2.9-6.1 9.3 -2.5-5.0 2.8 -3.06.6 8.3 7.1

-1.9 0.3 -1.30.9 1.3 1.1

-0.8 -6.8 -2.41.7 -5.6 -0.31.3 0.1 1.0

Note: Visitor arrivals for 1995 and 1996 revised by Hawaii Visitors and Convention Bureau on August 29, 1997.Sources: Department of Business, Economic Development & Tourism, State of Hawaii Data Book, 1987;

State of Hawaii Data Book, 1993-94; Hawaii Visitors and Convention Bureau.

58

Table D-2

TOTAL VISITOR ARRIVALS

YearFirst


ThirdQuarter

FourthQuarter

Annual


19851986

19871988

198919901991199219931994199519961997

1,301.51,393.21,448.91,484.91,683.71,714.81,509.51,622.21,559.61,615.61,609.41,748.21,728.7

1,129.61,421.21,370.01,488.21,605.11,724.41,727.21,598.01,476.31,527.71,593.01,669.41,654.2

1,266.91,450.91,555.21,635.61,754.81,879.91,958.31,703.61,588.91,692.71,788.41,810.81,826.5

1,186.21,341.81,425.81,533.71,598.31,652.21,678.91,590.11,499.51,594.21,638.51,607.5

n/a

4,884.15,607.05,799.86,142.46,641.86,971.26,873.96,513.96,124.26,430.36,629.26,835.9

n/a


19851986

19871988198919901991

1992199319941995

19961997

6.87.04.02.5

13.41.8

-12.07.5

-3.93.6

-0.48.6

-1.1

-6.425.8-3.68.67.97.40.2

-7.5-7.63.54.34.8

-0.9

3.614.57.25.27.37.14.2

-13.0-6.76.55.61.30.9

-1.813.16.37.64.23.41.6

-5.3-5.76.32.8-1.9n/a

0.614.83.45.98.15.0

-1.4-5.2-6.05.03.13.1n/a

Notes: n/a = not available.Visitor arrivals for 1995 and 1996 revised by Hawaii Visitors and Convention Bureau on August 29, 1997.

Source: Hawaii Visitors and Convention Bureau.

59

Table 0-3

WESTBOUND VISITORS

YearFirst


ThirdQuarter

FourthQuarter

Annual


1985

19861987

198819891990199119921993199419951996

1997

1,011.81,087.61,084.11,047.41,198.61,179.41,066.9

995.8979.8

1,019.31,010.71,050.11,038.5

840.21,094.3

999.91,028.81,145.61,189.31,175.7

976.5924.5979.1971.4

1,010.6996.2

957.81,073.11,102.41,088.11,213.71,245.31,255.01,004.6

937.11,009.8

985.01,022.41,043.5

898.91,001.41,017.61,100.41,147.41,105.71,087.01,003.3

923.1989.6966.1921.3

n/a

3,708.64,256.44,204.04,264.74,705.34,719.74,584.53,980.13,764.53,997.83,933.14,004.5


198519861987

1988198919901991199219931994199519961997

6.07.5

-0.3-3.414.4-1.6-9.5-6.7-1.64.0-0.83.9

-1.1

-9.030.2-8.62.9

11.43.8

-1.1-16.9

-5.35.9

-0.84.0

-1.4

3.812.02.7

-1.311.52.60.8

-19.9-6.77.8

-2.53.82.1

-2.411.4

1.68.14.3-3.6-1.7-7.7-8.07.2

-2.4-4.6n/a

-0.314.8-1.21.4

10.30.3

-2.9-13.2-5.46.2-1.61.8n/a



60

Table 0-4

EASTBOUND VISITORS

YearFirst


ThirdQuarter



19851986

19871988198919901991199219931994199519961997

289.7305.5364.8437.5485.1535.3442.6626.4579.8596.3598.7698.2690.2

289.4326.9370.1459.4459.6535.1551.5621.5551.7548.6621.6658.8657.9

309.1377.7452.8547.5541.0634.6703.3699.0651.7682.9803.4788.4783.0

287.3340.4408.2433.3450.9546.5592.0586.9576.4604.6672.4686.2

n/a

1,175.51,350.61,595.81,877.71,936.52,251.52,289.42,533.82,359.72,432.52,696.12,831.5

n/a


19851986

198719881989199019911992199319941995

19961997

9.65.5

19.419.910.910.4

-17.341.5-7.42.80.4

16.6-1.1

2.013.013.224.10.0

16.43.1

12.7-11.2

-0.613.36.0

-0.1

3.022.219.920.9-1.217.310.8-0.6-6.84.8

17.6-1.9-0.7

0.418.519.96.24.0

21.28.3

-0.9-1.84.9

11.22.1n/a

3.614.918.217.7

3.116.3

1.710.7-6.93.1

10.85.0n/a



61

Table D-5

AVERAGE DAILY VISITOR CENSUS

YearFirst


ThirdQuarter

FourthQuarter

Annual


19901991199219931994199519961997

168.4150.0160.9157.5174.6166.4174.7170.4

155.4161.2146.1137.7143.5146.8148.9148.4

170.2171.4155.0151.8157.4160.2159.2160.2

154.4146.7151.3148.0161.4155.4152.6

n/a

162.1157.3153.3148.7159.2157.2158.8

n/aAverage Daily Westbound Visitors

19901991

1992199319941995

19961997

132.9119.4123.1119.9127.6124.4128.3127.2

122.4127.2108.4101.8106.3106.4107.5109.4

127.7127.4110.0103.2109.7107.8110.5111.4

119.5110.8113.7107.6117.6113.8110.4

n/a

125.6121.2113.8108.1115.3113.1114.2

n/a

Average Daily Eastbound Visitors

19901991199219931994199519961997

35.430.637.737.647.042.046.443.2

33.034.137.735.937.240.441.339.0

42.544.045.148.647.752.448.848.8

34.935.937.640.443.941.642.2

n/a

36.436.239.540.644.044.144.7

n/aNote: n/a = not available.Source: Hawaii Visitors and Convention Bureau.

62

Table 0-6

AVERAGE DAILY VISITOR CENSUS(percentage change from the same period in previous year)

YearFirst


ThirdQuarter


Total Daily Visitors

1991

19921993

19941995

19961997

-10.97.3

-2.110.9-4.75.0

-2.5

3.8-9.4-5.84.22.31.4

-0.3

0.7-9.5-2.13.71.7

-0.60.6

-4.93.1

-2.29.1

-3.7-1.8n/a

-2.9-2.5-3.07.1

-0.61.1n/a

Average Daily Westbound Visitors

19911992199319941995

19961997

-10.23.2

-2.66.4

-2.53.1

-0.8

3.9-14.7

-6.14.40.11.01.7

-0.3-13.7

-6.16.3

-1.82.50.8

-7.22.6

-5.49.3

-3.2-3.0

n/a

-3.5-6.1-5.06.6

-1.90.9n/a

Average Daily Eastbound Visitors

1991199219931994199519961997

-13.723.3-0.325.2

-10.710.5-7.0

3.410.6-4.83.78.62.3-5.6

3.72.47.8

-1.89.8

-6.90.1

3.04.7

. 7.48.6

-5.31.6n/a

-0.89.32.88.30.31.3n/a

Note: n/a = not available.Source: Hawaii Visitors and Convention Bureau.

63

Table D-7

HOTEL OCCUPANCY RATE

YearFirst


ThirdQuarter

FourthQuarter

Annual

Percentage

1985

19861987

19881989199019911992199319941995

19961997

88.187.088.081.785.983.968.275.375.380.980.282.179.3

69.178.877.175.173.975.570.768.667.972.772.672.570.3

75.079.982.181.381.081.079.775.573.879.180.478.576.2

72.576.877.875.175.774.372.575.272.574.875.471.0

n/a

76.280.681.278.379.178.772.873.672.476.977.276.0

n/aNote: n/a = not available.Source: PKF-Hawaii.

64

CONSTRUCTION

Most indicators in the constructionindustry turned down in the third quarterof 1997 relative to the third quarter of1996. However for the year-to-date,many of these indicators remained athigher levels than in the first three quar-ters of 1996.

The value of construction completed,which is estimated as a one-month lag ofthe value of construction subject to thegeneral excise tax, fell 8.5 percent in thethird quarter of 1997 relative to the year-earlier quarter (table E-2). Unfortu-nately, this is one of the indicators thatalso showed a year-to-date decline at-11.5 percent.

The value of private buildingauthorizations, an indicator of futureconstruction activity, declined by 24.5percent in the third quarter of 1997 fromthe same quarter in 1996. But for theyear through September, the value ofprivate authorizations was 5.6 percenthigher than in 1996. Most of this in-crease on a year-to-date basis was pro-vided by the value of residential buildingauthorizations which rose 11.7 percentbetween the first three quarters of 1996and the same period in 1997.

The number of building authoriza-tions also declined in the third quarter of1997. The number of single family unitsauthorized fell 10.9 percent from thethird quarter of 1996 (table E-3). Year-to-date, single family authorizationsdropped 8.5 percent from the first threequarters of 1996. The number of multi-family units authorized fell by 67.6 per-cent in the third quarter, but the largeincrease in second quarter of 1997 meantthat for the first three quarters of 1997,

multi-family unit authorizations ex-panded by 13.4 percent compared to thefirst three quarters of 1996.

The slower pace of construction ac-tivity may be affecting measures of cost.The Honolulu construction cost indexfor single family residences rose slightlyby 0.7 percent from the third quarter of1996 to the third quarter of i997 (tableE-5). This is the lowest rate of increasesince the cost declines recorded in 1995.The Honolulu construction cost indexfor high-rise buildings grew at a morerapid 2.1 percent in the third quarter, buteven this pace is relatively low by his-torical standards (table E-6).

The third quarter decline in the valueof private building authorizations wasspread across the counties, with KauaiCounty seeing the largest decline (55.3percent) and Hawaii County seeing thesmallest decline (1.2 percent) (tableE-7). Year-to-date, the story is some-what different. Honolulu County expe-rienced a 12.6 percent rise in the valueof private building authorizations fromthe first three quarters of 1996 throughthe same period in 1997. By contrast,the Neighbor Islands have experiencedyear-to-date declines in this measure ofconstruction activity.

Government contract awards fellboth in the third quarter (-37.9 percent)and year-to-date (-30.1 percent) relativeto the respective year-earlier periods(tables E-l and E-2). While capital im-provement projects (CIP) spending fellby 28.2 percent in the third quarter, suchspending was 9.5 percent higher on ayear-to-date basis.

65

Table E-1

ESTIMATED VALUE OF COMPLETED CONSTRUCTION, NEW PRIVATEBUILDING AUTHORIZATIONS, AND GOVERNMENT CONTRACTS AWARDED

YearValue of

.ConstructionCompleted 1/

Private Building Authorization

GovernmentContractsAwarded

.Total Private. .Authonzations

. .

Residential.Commercial and

.Industna/ 2/

..

Additions and.Alterations


198519861987198819891990199119921993199419951996

1996 lQtr.2Qtr.3Qtr.4Qtr.

1997 lQtr.2Qtr.3Qtr.

1,429.61,802.12,145.52,529.03,193.14,121.64,305.33,950.43,785.43,317.33,153.43,241.5

803.0824.1809.9804.5

680.8734.3741.0

888.41,025.21,161.91,546.51,882.42,101.82,151.81,751,91,496.51,612.91,531.31,117.8

280.5268.2352.3216.7

258.9425.6266.0

500.1455.5507.0689.2910.7952.3

1,192.0811.1734.7849.3745.5487.0

118.399.2

178.191.3

88.4220.8132.8

208.8267.4344.4541.2561.8698.0556.2532.3306.3370.3368.3252.8

78.562.564.447.3

72.893.646.8

180.1302.3310.5316.1409.9451.5403.7408.5455.5393.4417.5378.0

83.7106.4109.878.1

97.8111.2

86.3

248.9422.7370.9665.0725.2825.5729.4

1,159.1651.8693.0490.2885.5

319.578.0

323.6164.4

181.8121.6200.9

Notes: 1/ Value of construction subject to State excise tax, adjusted to reflect reporting delay of about one month.2/Includes hotels.

Source: Hawaii State Department of Taxation; F. W. Dodge; County building departments; and First Hawaiian Bank.

66

Table E-2ESTIMATED VALUE OF COMPLETED CONSTRUCTION, NEW PRIVATE

BUILDING AUTHORIZATIONS, AND GOVERNMENT CONTRACTS AWARDED

YearValue of

.ConstructionCompleted 1/

Private BuildingAuthorization

GovernmentContractsAwarded

.

Total Private. .

Authonzations. .Residential

.Commercial and.

lndustnal 2/

..Additions and.

Alterations


198519861987198819891990199119921993199419951996

1996 lQtr.2Qtr.3Qtr.4Qtr.


16.526.119.117.926.329.1

4.5-8.2-4.2

-12.4-4.92.8

6.09.0

-0.2-2.9

-15.2-10.9-8.5

52.815.413.333.121.711.72.4

-18.6-14.6

7.8-5.1

-27.0

-33.6-43.6-7.3

-14.4

-7.758.7-24.5

52.6-8.911.335.932.14.6

25.2-32.0-9.415.6

-12.2-34.7

-47.0-42.7-19.8-28.1

-25.3122.5-25.4

100.828.128.857.13.8

24.2-20.3-4.3

-42.520.9-0.5

-31.4

-23.6-58.9

2.6-6.7

-7.349.6

-27.4

20.167.9

2.71.8

29.710.1

-10.61.2

11.5-13.6

6.1-9.5

-13.3-29.115.23.6

16.84.5

-21.3

-36.069.8-12.379.39.1

13.8-11.658.9

-43.86.3

-29.380.7

113.9-29.3207.531.3

-43.156.0

-37.9Notes:

Source:

1/ Value of construction subject to State excise tax, adjusted to reTiect reporting delay of about one month.21 Includes hotels.Hawaii State Department of Taxation; F. W. Dodge; county building departments; and First Hawaiian Bank.

67

Table E-3

NUMBER OF SINGLE FAMILY UNITS AUTHORIZED

YearFirst


ThirdQuarter


1985 802 1,236 1,644 1,269 4,9511986 925 1,226 1,354 1,195 4,7001987 1,523 1,639 1,429 1,475 6,0661988 1,323 1,767 2,096 1,114 6,2901989 1,474 1,620 1,993 1,777 6,8581990 1,922 1,476 1,132 1,472 6,0021991 1,094 1,010 1,303 1,419 4,8261992 1,317 1,058 1,388 816 4,5761993 1,147 1,311 1,064 1,228 4,7501994 961 963 1,426 1,226 4,5761995 796 1,138 1,180 778 3,8921996 756 630 880 540 2,8061997 533 757 784 n/a n/a


1985 -26.6 -6.6 47.4 39.3 11.51986 15.3 -0.8 -17.6 -5.8 -5.11987 64.6 33.7 5.5 23.4 29.11988 -13.1 7.8 46.7 -24.5 3.71989 11.4 -8.3 -4.9 59.5 9.01990 30.4 -8.9 -43.2 -17.2 -12.51991 -43.1 -31.6 15.1 -3.6 -19.61992 20.4 4.8 6.5 -42.5 -5.21993 -12.9 23.9 -23.3 50.5 3.81994 -16.2 -26.5 34.0 -0.2 -3.71995 -17.2 18.2 -17.3 -36.5 -14.91996 -5.0 -44.6 -25.4 -30.6 -27.91997 -29.5 20.2 -10.9 n/a n/a

Note: n/a not available.Sources: F. W. Dodge; County building departments.

68

Table E-4NUMBER OF MULTI-FAMILY UNITS AUTHORIZED

YearFirst


ThirdQuarter


1985198619871988198919901991199219931994199519961997

1,1511,247

488428309495

2,330520272427

1,290220

97

696299567702

1,501690973484556974290108655

29150999

528664349764

1,2191,120

630874469152

312424305935457

1,138736517476774192312n/a

2,4502,4791,4592,5932,9312,6724,8032,7402,4242,8052,6461,109

n/a


1985198619871988198919901991199219931994199519961997

1786.98.3

-60.9-12.3-27.860.2

370.7-77.7-47.757.0

202.1-82.9-55.9

110.3-57.089.623.8

113.8-54.041.0-50.314.975.2

-70.2-62.8506.5

117.274.9

-80.6433.325.8

-47.4118.959.6-8.1

-43.838.7

-46.3-67.6

-37.035.9

-28.1206.6-51.1149.0-35.3-29.8-7.962.6

-75.262.5n/a

140.01.2

-41.177.713.0-8.879.8

-43.0-11.515.7-5.7

-58.1n/a

Note: n/a = not available.Sources: F. W. Dodge; County building departments.

69

Table E-5

HONOLULU CONSTRUCTION COST INDEX:1985-1997, SINGLE FAMILY RESIDENCE (Jan. 1992=100)

YearFirst


ThirdQuarter


1985198619871988198919901991199219931994199519961997

76.178.580.986.789.591.698.6

101.5108.2118.4117.6120.7128.1

75.778.181.385.490.592.597.7

102.7114.9124.3117.8122.5129.2

77.679.182.586.690.397.398.3

103.1112.2121.6118.3129.3130.2

77.281.583.688.091.599.099.1

103.3110.6120.5119.3129.6

n/a

76.679.382.186.790.595.198.4

102.7111.5121.2118.2125.5

n/a


1985198619871988198919901991199219931994199519961997

1.93.23.17.23.22.37.62.96.69.4

-0.72.76.1

1.93.24.15.06.02.25.65.1

11.98.2

-5.24.05.4

4.21.94.35.04.37.81.04.98.88.4

-2.79.30.7

2.95.62.65.34.08.20.14.27.19.0

-1.08.7n/a

2.73.53.55.64.45.13.54.48.68.7

-2.46.1n/a

Note: n/a = not available.Source: First Hawaiian Bank.

70

Table E-6

HONOLULU CONSTRUCTION COST INDEX:1985-1997, HIGH-RISE BUILDING (Jan. 1992=100)

YearFirst


ThirdQuarter


1985198619871988198919901991199219931994199519961997

76.278.580.384.788.190.899.699.7

102.7107.7113.5115.8118.3

75.077.481.083.489.192.098.798.5

103.3109.1113.5116.0119.8

76.778.181.384.389.298.599.699.6

104.0109.6114.2117.4119.8

76.879.5

81.386.091.0

100.299.0

100.0105.8113.2115.3118.3n/a

76.278.481.084.689.495.499.299.4

103.9109.9114.1116.9n/a


1985198619871988198919901991199219931994199519961997

1.63.02.35.54.03.19.70.13.04.95.42.02.1

1.53.24.73.06.83.37.3

-0.24.95.64.12.13.3

3.51.84.13.75.8

10.41.10.04.45.44.22.72.1

2.93.52.35.85.8

10.1-1.21.05.87.01.82.6n/a

2.42.93.34.45.76.74.00.24.55.83.92.4n/a

Note: n/a not available.Source: First Hawaiian Bank.

71

Table E-7ESTIMATED VALUE OF PRIVATE BUILDING CONSTRUCTION

AUTHORIZATIONS, BY COUNTY: 1985 TO 1997

Year StateCity & County of

Honolulu..

Hawaii CountyKauaiCounty

.Maui County


1985 888,436 524,823 121,345 63,889 178,9331986 1,025,195 546,375 231,404 93,199 154,1201987 1,161,897 749,472 145,157 103,481 163,7861988 1,546,474 743,056 181,228 213,678 408,5081989 1,882,397 1,047,747 338,060 178,689 317,3641990 2,101,767 998,921 429,964 238,968 433,9161991 2,151,849 1,462,676 369,454 118,547 201,1741992 1,751,871 1,060,700 379,158 111,098 200,9161993 1,496,483 959,043 248,239 86,010 203,1791994 1,612,899 1,073,264 181,059 164,681 193,8941995 1,532,732 980,757 267,108 80,279 204,5881996 1,117,760 698,697 171,017 101,981 146,065

1996 1 Qtr 280,480 193,018 27,283 23,487 36,6912Qtr. 268,220 146,189 65,975 23,486 32,5703Qtr. 352,321 228,620 36,385 39,484 47,8334Qtr. 216,740 130,871 41,375 15,523 28,971

1997 lQtr 258,945 161,998 46,425 18,804 31,7182Qfr 425,581 304,938 37,857 39,815 42,9723Qtr 265,962 172,276 35,952 17,637 40,098

Source: County building permits.

72

Table E-7 (cont.)

ESTIMATED VALUE OF PRIVATE BUILDING CONSTRUCTIONAUTHORIZATIONS, BY COUNTY: 1985 TO 1997

Year StateCity &

County ofHonolulu

HawaiiCounty

KauaiCounty

Maui County

Percentage Change From The Same Penod in Previous Year

1985 52.8 38.7 34.3 20.5 199.01986 15.4 4.1 90.7 45.9 -13.91987 13.3 37.2 -37.3 11.0 6.31988 33.1 -0.9 24.8 106.5 149.41989 21.7 41.0 86.5 -16.4 -22.31990 11.7 -4.7 27.2 33.7 36.71991 2.4 46.4 -14.1 -50.4 -53.61992 -18.6 -27.5 2.6 -6.3 -0.11993 -14.6 -9.6 -34.5 -22.6 1.11994 7.8 11.9 -27.1 91.5 -4.61995 -5.0 -8.6 47.5 -51.3 5.51996 -27.0 -28.8 -36.0 27.0 -28.6

1996 1 Qtr. -33.6 -29.1 -73.1 82.7 2.32Qtr. -43.6 -46.4 -1.2 1.0 -71.13Qtr. -7.3 -19.8 -16.7 103.0 49.94Qtr. -14.9 -13.1 -25.0 -37.2 20.5

1997 1 Qtr. -7.7 -16.1 70.2 -19.9 -13.62Qtr. 58.7 108.6 -42.6 69.5 31.93Qtr. -24.5 -24.6 -1.2 -55.3 -16.2

Source: County buiiding permits.

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Table E-8STATE GOVERNMENT CAPITAL IMPROVEMENT PROJECT

EXPENDITURES: 1986 to 1997

Year Total~Expenditures

General.Obligation

Bond 1/

RevenueBond 2/

GeneralFund

(Cash)

.

SpecialFund

FederalFund 3/


1986198719881989199019911992199319941995

1996lQtr.2Qtr.3Qtr.4Qtr.

1997lQtr.2Qtr.3Qtr.

n/an/an/an/a

995,1631,027,1891,323,4501,188,3151,214,487

822,327

720,580137,754245,839176,195160,792

212,152274,739125,971

159,320169,979150,460210,757248,379210,022331,720472,515492,048342,423

286,47238,512

133,69454,64259,625

115,239161,70234,096

92,49189,34260,572

127,083368,502326,414512,432225,431327,98077,560

66,62527,49716,62610,16312,339

14,83919,0479,137

n/an/an/an/a

133,529121,108138,86789,91756,66219,672

6,7191,5922,4801,915

732

1,006939648

n/an/an/an/a

79,998164,915124,605147,351135,440169,901

165,42630,35840,69554,99039,382

35,59040,33449,823

n/an/an/an/a

164,755204,730215,826253,101202,357212,772

195,33839,79452,34554,48548,714

45,47752,71732,267

Percentage Change From Corresponding Period in Previous Year

198719881989199019911992199319941995

1996lQtr.2Qtr.3Qtr.4Qtr.

19971 Qtr.2Qtr.3Qtr.

n/an/an/an/a3.2

28.8-10.2

2.2-32.3

-12.4-21.2-15.9

5.2-14.2

54.011.8

-28.5

6.7-11.540.117.9

-15.457.942.4

4.1-30.4

-16.3-41.0-20.111.1-1.5

199.220.9

-37.6

-3.4-32.2109.8190.0-11.457.0

-56.045.5

-76.4

-14.1139.8

-4.5-38.9-61.5

-46.014.6

-10.1

n/an/an/an/a

-9.314.7

-35.2-37.0-65.3

-65.8-73.6-58.9-55.3-78.0

-36.8-62.1-66.2

n/an/an/an/a

106.1-24.418.3-8.125.4

-2.6-28.5

6.617.7-7.5

17.2-0.9-9.4

n/an/an/an/a

24.35.4

17.3-20.0

5.1

-8.2-19.9-17.4

7.4-0.5

14.30.7

-40.8Notes: This table is not directly comparable to contracts Awaraed data in Table E-1.

n/a = not available.1/ Consists of general obligation bonds and reimbursable general obligation bonds.2/ Consists of revenue bonds and special purpose revenue bonds.3/Includes special federal aid interstate; special federal aid primary; special federal aid secondary and federal funds.

Source: Department of Accounting and General Services, Report 300S.74

TERMS AND DEFINITIONS

Agricultural wage and salary jobs — Full- andpart-time jobs for which payment was madeby the employer in the survey week contain-ing the

12th of the month. Includes farm jobs

and machinery operators. Closely relatedmanagement and services jobs are includedfor sugar and pineapple but are excluded forother types of agriculture.

Average Daily Visitor Census — Average num-ber of visitors present daily in the state. Fig-ures are computed monthly by the HawaiiVisitors and Convention Bureau, based on ar-rival and departure dates from inflight ques-tionnaires.

Civilian Employment —Persons 16 years of ageor older who, during the survey week con-taining the 12th of the month, were either atwork for pay or profit, or worked withoutpay for 15 hours or more on a family farm orbusiness, or were with a job but not at work.Both permanent and temporary employeesand those who are working either full- orpart-time are included.

Civilian Labor Force —Total of employed andunemployed persons, excluding those in thearmed forces and 16 years of age or under.Surveys are done by U.S. Census Bureau forthe U.S. Bureau of Labor Statistics.

Civilian Unemployment — Persons 16 years ofage or older who (1) did not work at all dur-ing the survey week but were actively seek-ing work and were available for work; or (2)did not work at all, were available for work,and were waiting to be called back from lay-off or were waiting to report to a new wageor salary job within 30 days.

Construction Jobs — Jobs held by any personengaged in construction, repairing, erecting,or improving buildings or structures of anytype or description, and any installationstherein. Such construction includes not onlyresidential and non-residential building proj-ects, both private and public, but also high-way and road construction, street and side-walk construction, repair, excavations,

bridges, docks, and other heavy constructionprojects.

Contracting — Includes building contractors,land developers, architects, engineers, andpest control operators.

Contracting Tax Base — The total receipts ofbusinesses engaged in contracting to erect,construct, repair, or improve buildings orstructures of any kind or description, or tomake any installation therein. Attributed toevery business engaging in the practice of ar-chitecture, engineering, land surveying, land-scape architecture, and the practice of pestcontrol or fumigation.

Contribution to Social Insurance — Funds paidout to the federal government to satisfy FICA(social security) requirements.

Dividends, Interest, and Rent — Income derivedfrom corporate earnings, bank accounts, realestate activity, other rental activity, and anyother income based on investments.

Eastbound Visitors — Visitors who stayed inHawaii for at least one night but less than oneyear (if students, less than six months), fromAsia, Australia, and the Pacific. Since theHawaii Visitors and Convention Bureau doesnot have a visitor profile encompassing theentire eastbound travel market, this figure isobtained by subtracting the westbound over-night or longer visitors from the total visitorarrivals.

General Excise (Gross Income) Tax — Taxcharged to businesses on gross sales or grossincome. The tax rate is 1/2 of 1% on whole-saling and intermediary services, blind ven-dors, producing, manufacturing, sugar proc-essing and pineapple canning; all other ac-tivities (retailing, business and professionalservices, contracting, theater, amusement, ra-dio, interest, commissions, rentals) are taxedat 4%, except insurance commissions re-ceived by general agents, subagents and so-licitors, who are taxed at .15%.

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General Excise and Use Tax Base — Taxablesales of all goods and services. One of themost comprehensive measures of businessactivity in the state.

General Fund Tax Revenues — The generalgovernment fund used to account for all fi-nancial resources except those required to beaccounted for in another fund, such as thehighway fund, capital improvement fund, orairport fund.

Government, State and Local — Includes ac-tivities or expenditures of the legislative andjudicial branches, and some functions of theexecutive branch of government. It also in-cludes expenditures for staff agencies such asthe accounting, budget, purchasing, tax, anddata processing offices.

Honolulu Consumer Price Index — Measure ofthe average change in prices over time for afixed market basket of goods and servicespublished by the U.S. Bureau of Labor Sta-tistics. The index measures price changesfrom a designated reference date (i.e., 1982-84), which equals 100.0. An increase of 7percent, for example, is shown as 107.0.Data are updated twice per year.

Hotel Jobs — All jobs contained on a hotel pay-roll. The count varies among hotels de-pending on the reporting method.

Hotel Occupancy — The percentage ofoccupiedrooms in a hotel. Hotel occupancy rates de-pend not only on the number of visitors andtheir length of stay, but also on the hotelroom inventory, e.g., a large increase in newhotel units results in a drop in occupancyrates, until such time as visitor traffic buildsup enough to fill them. Rates are obtainedfrom a sample survey conducted on amonthly basis.

Hotel Rental Tax Base — The value of eco-nomic activity subject to hotel taxes. In-cludes the furnishing of temporary accom-modations in a hotel, or other place in whichlodgings are regularly furnished to transientsfor compensation.

Hotel Rentals — Includes gross income from thefurnishing of temporary accommodations in

a hotel, or other place in which lodgings areregularly furnished to transients for compen-sation.

Insurance Commissions — Includes commis-sions received by a licensed solicitor, generalagent, or sub-agent that is subject to the Ha-waii insurance law.

Interest — Includes interest and any gross in-come in the nature of interest received or de-rived from a business activity or from the in-vestment of the capital ofa business.

Labor Force — See Civilian Labor Force.

Manufacturing — Activities by any person orestablishment that buys materials, performswork on such materials, and changes suchmaterials into a finished or semi-finishedproduct. Includes compounding, canning,preserving, packing, printing, publishing,mailing, processing, refining, or preparingfor sale, profit, or commercial use, either di-rectly or through the activity of others, inwhole or in part, any article, substance, orcommodity.

Manufacturing Jobs — Jobs in manufacturingindustries, such as textiles, apparel, printing,publishing, food processing, and durablegoods.

Manufacturing Tax Base — Tax base on allmanufacturing activities, excluding sugarprocessing and pineapple canning. Directwholesale and retail sales by manufacturersare not included in manufacturing tax sales.

Net Income Tax — Tax revenue derived fromeither the individual or corporate income tax.Net individual income tax revenue calculatedas declared estimated taxes plus paymentswith returns plus withholding tax on wagesless refunds. Net corporate income tax reve-nue calculated as declared estimated taxesplus payments with returns less refunds. Thetax rate for individuals as well as estates andtrusts, ranges from 2.0% to 10.0% oftaxableincome. The allowable standard deductionamounts vary by filing status—$l900 formarried filing joint return or survivingspouse with dependent child; $1500 for sin-gle; $1650 for head of household, and $950

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for married filing separately. Tax rates forcorporations are 4.4% up to $25,000; 5.4%for $25,000 to $100,000; and 6.4% over$100,000.

Non-Agricultural Wage and Salary Jobs —

Derived monthly from a sample survey ofemployers reporting the number of personswho received pay for any part of the pay pe-riod containing the’ 12th of the month. In-cludes all full- and part-time non-agriculturalworkers, permanent and temporary workers,and workers on paid sick leave and paid va-cation.

Other Labor Income — Labor income other thanwages and salaries, such as employer contri-butions to private benefit plans, fees paid tocorporate directors, and miscellaneous fees.

Other Rentals — Rental income from real orpersonal property except the furnishing oftransient accommodations in a hotel or otherplace in which lodgings are regularly fur-nished to transients for compensation.

Personal Income — Income received by all indi-viduals in an economy from all sources,made up of wages and salaries, other laborincome, and the difference between transferpayments and personal contributions for so-cial insurance. This figure is compiled by theBureau ofEconomic Analysis (BEA).

Price Index — A weighted average of prices for aparticular set of goods and services in theeconomy at any given time, divided by theprices ofthe same goods in a base year. Forexample, the Consumer Price Index is the ra-tio ofan average ofthe prices ofcertain con-sumer goods in each month to the averageprices ofthe same goods in 1982-84, the baseperiod.

Producing — Includes fishing, raising, or pro-ducing of agricultural, animal, or poultryproducts in their natural state (or butchered,dressed, or natural resource products). Alsoincludes the sale of geothermal resources orelectrical energy produced by geothermal re-sources.

Proprietors’ Income — Earnings of unincorpo-rated businesses, (proprietorships, partner-

ships, and producers’ cooperatives), fromtheir current business operations. It includesboth farm and non-farm businesses, but ex-cludes capital gains and losses.

Retailing — Sales of tangible personal propertyto the customer for use or consumption andnot for resale.

Retailing Tax Base — Includes the general ex-cise tax base on retailing, the tax base on theuse tax, and the tax base on sales by blindvendors. Retail sales include sales for con-sumption or use by the purchaser and not forresale.

Services — Activities engaged in for other per-sons for a consideration which involve therendering of a service as distinguished fromthe sale of tangible property or the produc-tion and sale of tangible property. Includesall professional services.

Services Tax Base — Value of gross sales orreceipts on which the general excise tax is as-sessed. Includes gross sales or receipts ofestablishments primarily engaged in provid-ing a wide variety of services for individuals,business and government establishments, andother organizations; hotels and other lodgingplaces; establishments providing personal,business, repair, and amusement services;health, legal, engineering, and other profes-sional services; educational institutions;membership organizations and other miscel-laneous services.

Tax Base — The monetary value of goods orservices on which a tax is assessed.

Total Visitors — All persons who stayed inHawaii for at least one night but less than oneyear (if students, less than six months). It in-cludes both westbound arrivals (travelingfrom North America) and eastbound arrivals(traveling from Asia, Australia, andOceania).

Transfer Payments — Payments for which nogoods or services are produced in return.Examples are welfare and social security.

Transient Accommodations Tax — Tax leviedon the furnishing of a room, apartment, suite

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or the like which is customarily occupied bya person or group for less than 180 consecu-tive days for each letting by a hotel, apart-ment, motel, horizontal property regime orcooperative apartment, rooming house, orother place in which lodgings are generallyfurnished to transients for consideration. Thetax is imposed at the rate of 6%. The regis-tration fee for transient accommodations op-erators is a one-time fee of $5 for each regis-tration consisting of I to 5 units and $15 for6 or more units.

Unemployment Rate — Ratio of unemployedpersons to the civilian labor force expressedas a percentage.

Use Tax — Excise tax levied on tangible personalproperty which is imported or purchasedfrom an unlicensed seller for use in the state.

The tax is based upon the purchase price orvalue of the tangible personal property pur-chased or imported, whichever is applicable.Rates: 1/2 of 1%, if for resale at retail; 4%, iffor use or consumption.

Wages and Salaries — Income received for em-ployment services rendered.

Westbound Visitors — Visitors who stayed inHawaii for at least one night but less than oneyear (if students, less than six months), whotraveled from North America (MainlandU.S.).

Wholesaling — Sales of tangible personal prop-erty to licensed persons for resale or incorpo-ration into a product or project, and sales tocertain leasing companies.

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