HONOLULU -- Gov. Ben Cayetano said Wednesday that he will call a special session of the Legislature to help cope with what he calls the worst economic crisis ever to face the state.

THOSE AT TOURISM MEETING BANKING: Michael O'Neill: Bank of Hawaii Walter Dods: First Hawaiian Bank HOTELS: David Carey: Outrigger Hotels Keith Vieira: Starwood Hotels Peter Schall: Hilton Hawaiian Village AIRLINES: Glenn Zander: Aloha Airlines Paul Casey: Hawaiian Airliens RETAIL: Mitch D'Olier: Victoria Ward Dwight Yoshimura: Ala Moana TOURISM: Roy Takujo: Cove Marketing Bob Fishman: Hawaii Tourism Authority Tony Vericella: HVCB FORMER GOVERNORS: John Waihee George Ariyoshi COUNTY MAYORS: Honolulu: Jeremy Harris Maui: James "Kimo" Apana Hawaii: Harry Kim Kauai: Maryanne Kusaka LEGISLATORS (partial): Sen. Robert Bunda (D-Senate President) Sen. Calvin Say (D-House Speaker) Sen. Donna Kim (D) Rep. Galen Fox (R) Sen. Fred Hemmings (R) Sen. Brian Taniguchi (D) Sen. Colleen Hanabusa (D) UNIVERSITY OF HAWAII: Evan Dobelle (President) Lily Yao (Regent)

"This is the most serious economic crisis that our state has faced, but we are going to overcome it," he said after a three-and-a-half hour meeting with tourism executives, former mayors and governors, labor leaders and other top elected officials.

Discussion

Can Anything Be Done To Save The Island Economy?

Cayetano said that it will take a partnership of the state, counties, business, labor and the community working together to face the economic problems resulting from last week's terrorist attacks on the mainland.

Cayetano said that tourism leaders are reporting that they face a 40 percent drop in business in the industry that makes up 25 percent of the state's economy.

"All of us know the tourist industry is at the heart of our economy," he said. "As the tourist industry goes, so will the rest of hawaii's economy."

Initially, Cayetano is waiving airport landing fees and is asking the Federal Aviation Administration for authority to use some of the $390 million in the airport special fund for tourism promotion.

The group also hopes to spend more money promoting the state to skittish travellers. Cayetano will lead a contingent to Japan to encourage potential Japanese visitors to keep traveling.

Video

Governor Meets With Economic Shakers Tour Operators Feel The Pain

The governor announced the first steps in the state's economic recovery initiative following Wednesday's meeting and said that more meetings will be held to plan details of the strategy.

There was no immediate word on when the Legislature would be called into session. But Cayetano says proposals could include tax breaks and incentives to help businesses and encourage investment in the islands.

He also wants to extend unemployment benefits for people who already are starting to lose their jobs because of the drop in tourism. Cayetano said that he is asking banks to help businesses by extending loan payment periods, if needed, to keep them going through the downturn.

In addition, Hawaii Visitors and Convention Bureau President Tony Vericella, Peter Schall of the Hilton Hawaiian Village and Walter Dods of First Hawaiian Bank were asked to develop a plan to keep Hawaii's tourism industry solvent.

Cayetano and Vericella said that much of the tourism promotion will include a message that it's OK to take a vacation and that Hawaii offers a safe destination.

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