Those who do not learn from history are doomed to repeat it, or so the saying goes.

According to a source familiar with the Ritz Carlton resort development, one of the main reasons the project stalled was because of difficulties foreseen with bringing in foreign staff.

The new developers of the prime South Shore site do not expect to experience the usual staffing problems associated with a hotel, however.

"We're going to employ Bermudians," says Rammy Smith, the ambitious Bermudian behind The Cliffs development.

Rammy Smith and his partner David Johanson have pledged that the proposed 76 room hotel will be managed by a top hotel management company but will employ mainly Bermudians.

And unlike some other mixed residential and hotel developments, construction of the hotel will start during the first phase of the project.

"I've talked to quite a few people who used to be in the hotel business and they told me they would relish the opportunity to come and work for us," says Mr. Smith, reeling off a string of names whom he intends to poach.

To his credit, Mr. Smith has some experience of the employment market forces.

With his wife Nathalie he runs the Finance Department, Ltd., a recruitment firm based in Toronto that specialises in the placement of qualified accountants for the insurance industry in Bermuda and Ontario as well as the Cayman Islands and British Columbia.

He has placed more than 20 certified accountants in Bermuda with the insurance and banking industry.

In David Johanson, he has recruited a solid partner to take The Cliffs forward.

As well as an impressive resume of hotel developments in North America, Mr. Johanson was previously involved in Bermuda's WaterFront development. The WaterFront development, owned by Pearman Watlington, is the site of Miles Market and the Centre Solutions worldwide headquarters.

The WaterFront was a trail blazer in the commercial construction sector which paved the way for other commercial developments during the 1990s.

But while the WaterFront fulfilled a need for Class A office space in the insurance industry, whether there is a current need for new hotel accommodation is open to debate. To some extent, Johanson and Smith are swimming against the tide.

Mr. Smith emphasises that they will be building something that does not exist at the moment.

The design will be contemporary with each room providing the comforts of home with a small kitchen, generous living room, separate bedroom and a large bathroom with separate bathtub and shower.

The rooms are intended to appeal to the European traveller who prefers an extended stay typically lasting 12 days.

According to Smith and Johanson, this segment of the growing international tourism market tends to be accommodated within limited properties in Bermuda, which do not have the ability to upgrade their facilities to meet modern hotel technology.

"We want to develop a property where people can bring their kids and be comfortable and self sufficient."

As well as tourists, they are aiming to attract business travellers and will provide all the technology and work area facilities that such guests would expect.

They also see potential for housing new employees of exempt companies when they first arrive on the Island and are looking for accommodation.

Mr. Smith's enthusiasm about the project is infectious. He firmly believes that the decline of the tourism industry in Bermuda is not irreversible.

"The reason that the product has deteriorated is because we are relying too much on one industry, forgetting that Bermuda's friendliness and the hospitality infrastructure that's always been in place is what made international business what it is today."

But while some might dispute this prognosis of the tourism sector's decline, the demand for the residential part of the project is not controversial. The proposed 38 condominiums at The Cliffs are likely to be highly desirable.

But according to Mr. Smith, the residential aspect is merely a means to an end.

It's the hotel they are really passionate about, but without the residential aspect, it would not be possible to finance it.

"If I could put a casino in there, I could finance a 300 room hotel! " observes Mr. Johanson, but he acknowledges that the introduction of a casino would meet a torrent of opposition in Bermuda and is unlikely to ever gain political support.