Military Spending in Hawaii Tops $12 Billion, Surpasses Tourism
The U.S. military contributed $12.2 billion to Hawaii’s economy in 2009, representing 18 percent of total spending in the state, according to a new study.
The figure, counting direct and indirect spending in the islands, suggests the military’s economic impact rivals that of Hawaii’s tourism industry.
While the study did not include a direct comparison to the visitor industry, from the state Department of Business, Economic Development and Tourism show visitor spending totaled $10 billion that year, down from $11.4 billion in 2008.
Hawaii’s gross domestic product in 2009 was $66.4 billion. That means visitor spending represented 15 percent of total spending in 2009, while military spending comprised 18 percent.
The study — “How Much Does Military Spending Add to Hawaii’s Economy” — was done by Rand Corp. for the and the .
Other findings in the study:
- The Department of Defense reported $4 billion worth of personnel expenditures and $2.45 billion in defense procurements in 2009
- A breakdown of the procurements: Construction ($787 million); Professional scientific and technical ($457 million); Administrative and support services ($192 million); Petroleum and coal products manufacturing ($176 million); Transportation equipment manufacturing ($90 million)
- Hawaii was home to 75,473 Department of Defense personnel in 2009, representing about 12 percent of the state’s employment that year
- Pre-tax earnings of Hawaii military personnel averaged $5 billion annually between 2007 and 2009
- Active-duty personnel earned a median salary of $74,900
Read the full [pdf].
