HONOLULU -- Hawaii's No. 1 industry: tourism is "in crisis mode," according to First Hawaiian Bank economist Leroy Laney.

FHB released a special economic report on tourism Wednesday.

"Foremost, the tourism industry has an overwhelming economic importance for Hawaii. It is imperative that all possible actions be taken to remedy the situation. If that does not happen, or until it does, the Hawaii economy will remain anemic. Employment in all sectors will be down, as will tax revenues, business profits, and overall economic well being," Laney said.

Laney attributed a number of recent developments to the drop in Hawaii tourism.

Aloha Airlines collapse

ATA airlines service halt

Departure of two Norwegian Cruise Line vessels

Molokai Ranch closing

Maui Land & Pineapple Co. major layoffs

Gay & Robinson ending sugar harvests in 2010

Financial global meltdown

Overall visitor arrivals decline of 11 percent in 2008

The report comes on the heels of the Department of Business, Economic Development and Tourism's report that showed February visitor arrivals down 12.7 percent compared to the same time last year.

"Hawaii is so dependent on tourism because that is the one industry in which we have our true comparative advantage," Laney wrote. "It would be hard to invent a better export driver than tourism. It's clean; it enhances the local tradition, history, and culture; it usually emerges in places that are desirable in the first place; and its jobs cannot be outsourced." Laney pointed to several key developments that have hurt the tourism industry.

A better economy depends on good news from the national and global economies, Laney said. He also warned that Hawaii should not expect a snap back.

"Long distance tourism is one of the first things to be eliminated from a typical household budget during tough times like this, and it's likely one of the last things to be restored," Laney said.

Laney said that about 75 percent of the jobs in the state are somehow affected directly or indirectly by tourism.

In 2008, the state lost $1.2 billion in visitor spending. In the first two months of 2009, visitor spending is down $300 million.

Laney said the message is that "this is no time to cut back on tourism marketing and that we need to nurture the industry as much as possible."

With tourism so critical to the state's economy, one of the factors that could help local businesses, is changing attitudes toward tourism, the report stated. That would mean identifying tourism as a partnership instead of a competition over limited resources.

"What you've got to remember is that's where you eat. That's what we sell to the rest of the world," Laney said.