(MONEY Magazine) – Talk about islands of prosperity! While much of the U.S. is economically stagnant, the Aloha State is booming, thanks to tourism and an idyllic way of life. In the 1990s, ''Hawaii will be the most popular place to live,'' says Richard Young, president of Young Research & Publishing in Newport, R.I. Merrill Lynch projects that the state's population will increase by nearly 18% over the decade. Such brisk growth is good news for Hawaiian Electric (NYSE, $36), with revenues of $884 million, which provides electricity to 95% of the state's people. Says Young: ''It's blue-chip quality and has no nuclear exposure.'' Moreover, Hawaii's thriving real estate market bodes well for banks such as Bancorp Hawaii (OTC, $51.25), which has assets of $8.3 billion. Duff & Phelps' bank analyst Michael Starr, who favors the stock, notes that the institution controls 46% of the Hawaiian banking market.