HONOLULU -- Gov. Ben Cayetano met with business and political leaders on Kauai Wedesday ask them what they want done to revive Hawaii's slumping economy following the Sept. 11 terrorist attacks in New York and Washington.

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Can Anything Be Done To Save The Island Economy?

While luxury resorts and time-share properties are reporting 70 to 80 percent occupancy rates, tourism officials said that smaller hotels and small businesses that serve visitors have seen 30 to 40 percent drops in sales.

Business leaders asked Cayetano to defer the 4 percent general excise tax for severely impacted businesses.

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Denby Fawcett Reports From Kauai

"I am inclined to do that, but I think we need to know the impact on our state services," Cayetano replied. "It may not be appropriate for everyone across the state because some business may be doing just fine."

The governor assured Kauai officials that he saw no need to dip into either the hotel room tax, rainy day fund or hurricane relief fund to help the economy.

Kauai small businesses serving local people also reported declines in sales saying that their customers are afraid to spend because of national uncertainties.

Cayetano is expected to meet with business and political leaders from all neighbor island counties in coming days.