The bad news is air arrivals have dwindled to a few hundred thousand a year, another of Bermuda's hotels closed down, and no ground was broken last year on any of at least ten proposed new resorts.

But the good news is developers behind most of the highly publicised hotel developments announced in 2009 remarkably are pushing on.

Despite the economic uncertainty, construction could finally begin this year on at least three, and possibly four, new hotels. Some of the proposed developments, including the St. George's Park Hyatt, appear to have been scaled back.

However, 2010 may finally see at least a dawning of Government's much-touted and badly needed "platinum period" of tourism revitalisation.

Last year two new, or rather, redeveloped hotels opened — Tucker's Point and Newstead Belmont — while Elbow Beach made the shock announcement it was closing its main hotel in order to upgrade the rooms.

In the past decade the number of tourists flying to Bermuda has dropped from close to 400,000 to just 264,000 in 2009.

But that's not putting off developers:

* U.S. hotel developer Carl Bazarian says he now has full financing in place and could finally break ground on the planned Park Hyatt at the old Club Med site in St. George's possibly "at the end of the year" once the design is finalised and approved.

Mr. Bazarian told The Royal Gazette: "We have received a commitment on rounding out the equity from a London-based investor well known to HSBC and Credit Suisse."

* Officials with Ariel Sands hotel, closed for a year, say they are close to a redevelopment deal with a Canadian developer and high-end hotel operator, which could see ground broken this year.

"Feasibility studies are currently underway and will be completed within three months," said Trevor Boyce, accountant-consultant to Ariel Sands.

"If successful Ariel could well see ground broken this year." He said the Canadian developers view the site as "absolutely unique" and were very serious about proceeding once the studies are done, if there are no major red flags.

* Officials with the planned Par-La-Ville Hotel and Residences says the project is "on track" and the development is now featured on the St. Regis Residences website, which has begun taking names of people interested in buying one of the 80 private residences.

* Detailed plans for developing Morgan's Point into "a five star luxury hotel resort with full amenities" were shown to Government at a meeting in early December.

A spokesperson for Premier Ewart Brown said the proposal was still being reviewed by the various Government agencies involved.

"Southlands Ltd made a presentation to the Cabinet Committee on Special Hotel Development," the Premier's spokesperson said. "The developer's proposal continues to emphasise tourism use for the land at Morgan's Point."

Government has held off completing a planned swap of the Southlands site for Morgan's Point land until the plan for the entire development is revealed.

A spokesperson for Southlands Ltd., said "(Earlier in December) the principals of Southlands Ltd made a presentation to Bermuda Government representatives at a recent Tourism Cabinet committee meeting.

There, they presented their proposal for developing Morgan's Point into a five star luxury hotel resort with full amenities. At this point they are waiting for a response from Government on the success of that proposal."

* Plans for a Four Seasons 150-room hotel and residences at the Coral Beach Club are proceeding. The project, which will include a pedestrian tunnel, won in-principle approval upon appeal and owner George Wardman said "a new slower approach" was being taken with U.S. partners Brickman. He said the hotel remains open, having never actually closed down in November as originally planned. "I believe something is going to happen soon," Mr. Wardman said. Brickman officials did not return phone calls.

* Developer Gilbert Lopes said plans for a 100-room hotel and 125 affordable homes for Bermudians on South Shore, Warwick, are on track and he is involved in "almost daily" talks with Government, the Housing Corporation and lenders to finalise the details and the financing. Mr. Lopes said he and Larry Swenson, of Atlantic Development, hope to have a building permit by this summer and to break ground right after.

* Coco Reef Resorts Ltd. owner John Jefferis announced plans to break ground next year on 66 serviced villas, to initially be leased back to the hotel for six months a year.

He said financing is in place. A second phase at the South Shore, Paget site will include a six-storey hotel.

It's unclear whether Bermuda's foreign home ownership rules will have to be revised in any way to accommodate the new kinds of residential components of some of the proposed resorts, such as the St. Regis Residences.

Bermuda laws right now allow foreigners only to purchase certain houses and condos, and they must have certain high annual rental values. Fees up to 22 percent to acquire a property are also charged by Government.

Plans, meanwhile, look uncertain for the former Wyndham/Sonesta prime beachfront property that now sits derelict in Southampton.

In January 2008, developers Scout Real Estate Capital announced plans for a $300 million resort called Southampton Beach Resort to open in 2011. The hotel was demolished and Lehman Brothers was supposed to finance the new resort, but went bankrupt.

Last October Scout declined to comment on reports it was looking for a quick sell-off of the property and that it had been newly appraised.

Scout CEO Alan Worden did not return repeated phone calls seeking an update.

Plans for an 81-unit hotel and residences at the corner of Court Street and Reid Street also seem to have gone cold.

The development on the site of the former Canadian Hotel was granted a Special Development Order in 2008. But owner Ted Powell said last year financing was still not in place.

Also stalled, are plans by Lawrence and James Doyle, of New York, to create a $145 million "ultra-luxury resort" on the site of the old Lantana cottage colony.