"My business for January and February is nearly 10 percent less than it was in January and February of last year," said Kazuhiko Shiraya, head of Vita USA, which sells Hawaii tours in Japan.

Tour package prices in Japan are becoming more competitive to keep the business going, he said.

"As of today, arrivals are down about 8 percent," he said, comparing this month with January 1996. "February looks to be about the same, down 8 to 10 percent."

"I suggest that the HVCB as well as the tourism industry rally itself together and go to Japan and make a promotional trip to try to kick start the business or at least nullify the competition," he said.

The Hawaii Visitors and Convention Bureau told legislators today that it needs more state funding to resume marketing in Japan.

Some in the industry have noted that Hawaii has been putting all its eggs in one basket, relying on Japan to keep tourism figures increasing while business from the mainland is flat.

Reed sees it another way: "We're getting all our eggs out of one basket." Hawaii is taking the Japanese business happily but isn't putting in any money to ensure that it is still there, he said.

Steve Kawagishi, a former executive of a Japanese hotel company and now president of the Japan Hawaii Travel Association, said his discussions with member companies left him with a mixed outlook, leaning toward the negative. "There is a general malaise."

"I think Hawaii has been kind of quiet as far as marketing for Japanese tourism," Kawagishi said. "I think we need to spend a little money to attract people from Japan and to look after them when they are here," he said.

Kawagishi said efforts must be made to reduce crime against Japanese tourists and to improve airport arrivals procedures. "We cannot just sit on the assumption that they will come," he said.

Gilbert Kimura, a spokesman for Japan Airlines, said, "I don't think this is going to be a really bad year," but to JAL it does look flat. To keep the business coming, Hawaii will have to be competitive with other destinations, Kimura said. "Japanese travelers are now very price conscious because the economy in Japan is not good," he said.