Economy
Tourism is Kauai's largest industry. In 2007, 1,271,000 visitors came to Kauai, and the two largest groups were from the United States (84% of all visitors) and Japan (3%). As of 2003, there were a total of approximately 27,000 jobs on Kauai, of which the largest sector was accommodations–food services (26%, 6,800 jobs) followed by government (15%) and retail (14.5%), with agriculture accounting for just 2.9% (780 jobs) and educational services providing just 0.7% (183 jobs). In terms of income, the various sectors that are comprised by the visitors industry accounted for one third of Kauai's income. On the other hand, employment is dominated by small businesses, with 87% of all nonfarm businesses having fewer than 20 employees.
As of 2003, Kauai's unemployment rate was 3.9%, compared to 3.0% for the entire state and 5.7% for the United States as a whole; and, Kauai's poverty rate was 10.5%, compared to the State's 10.7%. As of mid-2004, the median price of a single family home was $528,000, a 40% increase over 2003. As of 2003, Kauai's percentage of home ownership, 48%, was significantly lower than the State's 64%, and vacation homes were a far larger part of the housing stock than the State-wide percentage (Kauai 15%, State 5%).
In the past, sugar plantations were Kauai's most important industry, but most of that land is now used for ranching. Kauai's sole remaining sugar operation, the 118-year-old Gay & Robinson Plantation has announced that it plans to transform itself into a manufacturer of ethanol from sugar cane.