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Associated Press - April 2, 2011 3:04 PM ET
HONOLULU (AP) - The drop in tourists from Japan to Hawaii may not be as severe as originally thought.

The Hawaii Tourism Authority is projecting an 18% decline in arrivals from Japan for the month of March, a smaller dip than the authority's initial 25% estimate.

The loss of Japanese travelers was expected to damage Hawaii's economy and government, both of which rely on tourism money.

The state Council on Revenues downgraded its forecast this week, in part due to the drop in Japanese visitors, to show the state government now has an estimated $1.3 billion shortfall over the next two years.

The Hawaii Tourism Authority also said it's hopeful that April flight reductions by Japan Airlines from Narita to Honolulu will be restored soon.

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