LIHU'E, Kaua'i — With the smallest economy of the state's four counties, Kaua'i is suffering proportionally more from the ongoing recession, First Hawaiian Bank economic advisers said yesterday.

"The question now on everyone's mind is: How long before better times return," said Leroy O. Laney, who, with fellow economist Jack Suyderhoud, gave the bank's 35th annual economic outlook presentation to the Kaua'i Chamber of Commerce last night.

"Recovery will be gradual and will depend on the return of healthy tourism," Laney said.

An improved U.S. economy will provide more visitors to improve Kaua'i's economy, he said.

"Kaua'i is aware they need to do something about tourism because tourism drives this economy," Laney said in an interview before the public presentation. That something is a $1 million marketing plan for Kaua'i tourism that the county is financing.

"When we see recovery consistently (on the Mainland), tourism will come back," Suyderhoud said. In the meantime, a weak dollar and better exchange rates for European and Asian countries could attract travelers from those regions, he said.

Construction has slowed or halted for many of Kaua'i's commercial and residential projects, especially in the Po'ipu resort area. But there are bright spots.

A Safeway-anchored shopping center in Lihu'e is slated to open in 2010 and the Kukui'ula Village shopping center adjacent to the Kukui'ula subdivision opened last week. Developers say plans for a new shopping center in Koloa remain intact.

And there are fewer jobs now on the Garden Island than in any year since 1993, the year after Hurricane Iniki.

As recently as 2006, one of Kaua'i's biggest problems was a lack of workers. Now, with unemployment topping 11 percent, that's not the issue, Suyderhoud said.

"These are tough times — everyone on Kaua'i knows that," Laney said. "The thing to bear in mind is eventually things will get better."

Seed corn companies continue to provide a stabilizing $40 million a year economic influence for Kaua'i's west side, as does the Pacific Missile Range Facility, at about $130 million in payroll.