The first major industry that established any sort of economic importance in the islands was sandalwood. Sandalwood was gathered in great amounts an exported around the world, especially to China, where it was prized for its fragrance and medicinal properties. However, as a result of over harvesting, the sandalwood forests were depleted and whaling became the next economic base, with Lahaina, Maui being the major whaling center of the Pacific.

Once the whale population depleted, sugarcane and pineapple production became the economic base, with numerous plantations being established throughout all of the islands.

Today, tourism serves as Hawaii’s primary economic base.

Due to its beautiful beaches, lush greenery, and excellent outdoor activities, Hawaii is one of the most popular tourist destinations in the world. The tourist industry has developed Hawaii into a mainly service-based economy, with very few engineering or high-tech industries available. However, due to the current economic global recession, Hawaii has suffered greatly from the decline of tourism and rising hotel occupancy rates, giving rise to the numerous discount packages and lower rates offered by hotels and Hawaii tourist businesses