A panel of business leaders painted a generally dismal picture of Hawai'i's current economy, with tourism especially hard-hit by financial conditions on the Mainland and in Japan.

Speaking at a breakfast forum sponsored by The Honolulu Advertiser, Rex Johnson, president and CEO of the Hawai'i Tourism Authority, cited the continuing declines in tourism arrivals.

He said while Canadian visitors have helped to offset some of the negative numbers, the state is especially affected by the deteriorated economic conditions in California and Japan.

He said promotion is especially important now in the West Coast market.

Hotels are also feeling the pinch. David Carey, president and CEO of Outrigger Enterprises Group, said while occupancy in high-end properties remains solid, the declines are notable in Hawai'i's traditional hotel inventory and consumers are cautious.

He said the average consumer is not going to travel to Hawai'i in the current environment, "no matter how good the deal is." He said any marketing needs to be targeted and aimed at those who are still traveling.

Last year, residents were showing "tourism fatigue," said Mark Dunkerley, president and CEO of Hawaiian Holdings Inc. They said they did not want to compete with visitors for room on the roads and other services.

He said it will be interesting to see if that feeling persists as the tourism decline rolls through the economy this year.

To view the economic forum in full, go to http://honoluluadvertiser.com/livestream.