HONOLULU - TOURISM industry leaders in Hawaii coping with the sharp downturn in business travel are seeking help from a native son - President Barack Obama.

Governor Linda Lingle, 90 business leaders and Hawaii's four mayors wrote Mr Obama last week urging him to oppose any measure restricting companies that receive federal funds from using business meetings 'as a legitimate business tool.'

DAYS GONE BY 'The pace of bookings have fallen off the edge of the world,' Ms Wienert, Hawaii tourism liaison, said. 'That's why we have all these incentives out there right now.' Fortune 500 companies long used trips to the islands to reward top employees. Some would book entire resorts, rent out golf courses and host extravagant parties. As recently as 2007, for example, Toyota Motor Sales USA, paid US$500,000 to rent out the lower campus of the University of Hawaii for a private concert by Aerosmith for 6,000 dealers and their guests. ... more

As the economy faltered and federal aid recipients came under fire for sponsoring gatherings at flashy destinations, 132 groups and companies cancelled meetings and incentive trips to Hawaii in the first three months of this year. The state's economy lost an estimated US$98 million (S$147 million) as a result. Other popular destinations such as Las Vegas, Florida and Arizona are seeing similar cancellations.

'This has had a huge effect on the economy in the areas and jobs in the industry,' Hawaii tourism liaison Marsha Wienert said.

Fearing Congress will pass legislation that further weakens the lucrative conventions, meetings and incentive travel market, the industry has launched a campaign to change perceptions of business travel.

Hawaii has a large stake in the campaign's success: Some 442,000 business travellers visited the state last year to attend meetings, accounting for 7 per cent of total visitors and at least 12 per cent of all visitor spending, said Michael Murray, who heads corporate meetings for the Hawaii Visitors & Convention Bureau.

'It's a very lucrative market,' Mr Murray said.

Industry leaders blame this year's drop-off on the media and legislators' response to spending by companies that have received federal bailout funds. But the industry had been dealing for a year with companies tightening their budgets in tough economic times by the time business travel became a political issue this winter.

Hawaii has rolled out a flurry of incentives, programs and deep discounts in hopes of luring back companies. The convention bureau even launched a Web site with special offers that touts the islands as a place for business. -- AP