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; f I 1 I the County government. This component unit is included in the County's reporting entity because of its financial relationship with the County. The County provides the full range of municipal services. These include police and fire protection;emergency medical care;public prosecutor;culture and recreation; sanitation; social services;water;planning and zoning; construction and maintenance of highways,streets and infrastructure;real property assessment and tax collection; and general administrative services. However,the County does not provide such other traditional services as public education, hospitals and courts. These services are provided by the State government. The County consists of the island of Hawaii,4,028 square miles in size. It is twice as large as the combined area of all the other inhabited islands in the Hawaiian Archipelago. Since there is no other local or municipal government within the County,there are no overlapping taxes and no a overlapping debt. The County has an elected mayor and a nine-member council. S 1 Economic Condition and Outlook The island of Hawaii,commonly known as the Big Island, is located 214 miles from Honolulu, the state capital;2,200 miles from the west coast of the continental United States; and 4,000 miles from Japan. The city of Hilo on the east side of the island serves as the county seat as well as the transportation and financial center for the Big Island. Hilo's infrastructure includes Hilo Harbor,a deep-water port,and Hilo International Airport,which is capable of handling fully- loaded wide-bodied aircraft. Kailua-Kona and South Kohala,major tourist destination areas on the west side of the Big Island,are served by flights from the United States mainland,Japan and Canada through the Kona International Airport. Scheduled freight services are available between the islands by air and sea transport. Communities on the island are linked by a network of State and County maintained streets and highways. The Big Island is the most diversified of the neighbor island economies. As a result it is buffered when any one industry lags. However,while the majority of 2008 proved to be a positive economic situation,the Big Island currently faces a weakened economic outlook with downturns in the tourism, construction and retailing sectors across the island. Continued increasing population has contributed to a growing labor force that numbered 88,683 in 2008. However,the troubled economic situation facing the County is evident in the increasing unemployment rate,which increased to 3.4 percent at the end of 2007 and almost doubled from 2.8 percent in 2006 to 5.5%at the end of 2008. Tourism—Tourism is the major industry on the island. In addition to the mild climate and natural beauty it shares with other areas in the state,the County features the Hawaii Volcanoes National Park. A popular attraction,the park is the most visited site in the state,handling over 2 million visitors annually,which became even more popular with the increased activity of Kilauea Volcano. Total visitors to Hawaii decreased from 1,597,056 arrivals in 2006 to 1,324,302 j arrivals in 2008. Although the cruise ship industry was a developing source for bringing tourists to the island of Hawaii in 2007 with 488,515 arrivals,the industry began to shows signs of j decline with the number of cruise ship visitors decreasing by almost half in 2008 to 255,908. i i -2- j 1