Fox's "North Shore" and ABC's "Lost" remain on the dial providing hope that one may become a long-term staple for the state's entertainment industry. Additionally, WB has plans for another Hawai'i-based show called "Rocky Point."

"It's still a difficult thing no matter what," said Donne Dawson, Hawai'i Film Office commissioner. However, "We're definitely in a better position because we've been lucky with three shows here and a fourth pilot in the can."

For Hawai'i, the film and TV production industry is expected to generate $100 million in spending this year and part-time work for about 4,000 people. While that's just a fraction of the state's $46 billion economy, the broader impact is the exposure such shows provide for Hawai'i and the potential for increased tourism.

That's where the loss of "Hawai'i" is of particular concern. Of the three series already aired, only "Hawaii" and "North Shore" are identified as Hawai'i products, with "Hawaii" the most tightly tied to the state. "Lost," which has probably received the most favorable reviews, doesn't rely on the cachet of the Hawai'i brand, and potentially could be shot in any tropical locale.

"You couldn't have asked for a better name (than "Hawaii"), as far as we're concerned," said Steve Bretschneider, deputy director and chief marketing officer for the state's Department of Business, Economic Development and Tourism.

However, there were questions about whether "Hawaii's" depiction of crime in Honolulu was a benefit for tourism. The pilot episode involved the discovery of several severed heads in a trunk of a vehicle at a time when Americans were receiving news of beheadings in Iraq.

"I think most of it was good for the state," Bretschneider said. "Magnum P.I. and Hawaii Five-O were about crime, too. I don't know anybody would say they they did harm to the state."

"Hawaii's" failure comes despite industry tax incentives meant to make the state an economically attractive locale. Those include a 4 percent film industry tax credit on costs incurred on O'ahu and a 100 percent investment tax credit for performing arts and technology businesses. Those incentives were key in attracting all three shows, said Chris Lee, chairman of the Academy for Creative Media at the University of Hawai'i-Manoa and former executive with TriStar Pictures and Columbia Pictures.

"I don't think it's an accident" that three TV shows were in production simultaneously, he said. "I think it's definitely a factor."

Whether the level of Hawai'i' film industry incentives are high enough to compete with other communities is debatable. However, industry incentives probably didn't factor in the decision to cancel "Hawaii."

"I'm not going to say it isn't an issue with production companies because it is," Bretschneider said. "But I don't think that cost was an issue (with "Hawaii"). I just think that the show didn't develop the popularity it needed."

Additionally, only a handful of the dozens of shows rolled out by TV networks each year become hits, Lee said. So the law of averages dictated that it was unlikely all three Hawai'i-based shows would stick. Fortunately, Hawai'i appears to have a hit in "Lost," Lee added.

If there is a benefit to losing "Hawaii," it's that the cancellation should alleviate some of the pressure on the state's feast-or-famine TV and movie production workforce, which could help with "Rocky Point" if production proceeds or with added movie work.

In addition, "Hawai'i's" producers spent $2 million to $3 million transforming the former Hopaco warehouse in Mapunapuna into a sound stage, which other productions may use, Lee said.

"People came. They did a show here and it was a positive experience," Lee said of "Hawaii." "Positive experiences beget more people coming here."