A global hospitality and leisure consultant believes the high cost of operating a hotel and the decline in hotel occupancy rates needs to be addressed for Bermuda to compete with the growing number of resorts and hotels in the Americas.

Scott Berman, who was appointed as an advisory practice leader for PricewaterhouseCoopers? US hospitality and leisure group last month was a guest speaker at this week?s annual meeting of Government and hotel owners.

Mr. Berman gave a talk entitled ?Bermuda, the competitive landscape? which highlighted the Island?s challenges against those being experienced in Caribbean destinations including Barbados, Cayman Islands, Bahamas and the US and British Virgin Islands.

In a telephone interview from Miami yesterday, Mr. Berman said he was asked for a third party, independent view of the the lodging industry in Bermuda.

While Bermuda is a ?terrific? Island to visit, he said, it was very difficult to operate a hotel facility here. ?The competitive environment is growing in the Americas and the resort industry in the Caribbean is full of new state-of-the-art mixed use resorts ... not just a hotel, but residential campus, hotel and resort amenities,? he said.

Mr. Berman felt the residential part of it was critical to the economics of any project.

?I think if one evaluates the competitive set five years ago, it?s dramatically different and expanded and that puts Bermuda, as wonderful a destination as it is, at somewhat of a disadvantage.?

Besides the decline in overnight visits, Mr. Berman said the operating costs of running a hotel in Bermuda ? compared to other destinations ? needed to be addressed.

?From an investor?s point of view, if there is an economic risk it certainly does not motivate one to expand and if Bermuda were to compete in the global arena, the status quo needs to change,? he said.

Mr. Berman said as far as meetings go between the public and private sector, this week?s meeting was informative and positive, with the right signals sent by both sides.

?And I think both sides are in absolutely in agreement that the lodging industry of Bermuda is in need of some sort of relief, especially from the very high operating costs,? he said.

Mr. Berman has spent a lot of time canvassing other destinations, not just in the Caribbean, and said he walked out of the meeting feeling that the issues were addressed and everyone understood that this would not happen overnight, or even in a month, but over a long-term period. Compared to the rest of the Caribbean, Mr. Berman said the high cost of airfare was not in Bermuda?s favour.

?There is no question that Bermuda is at a competitive disadvantage when it comes to the cost of getting there, especially since many Caribbean destinations are covered by the low-cost carriers.?

As far as Bermuda?s product is concerned, Mr. Berman said it was hard for hotel/resort owners to reinvest in their product when operating costs were so high ? making it hard to put money away. ?Every destination has its own profile and Bermuda has many positive aspects. It?s safe, secure and it?s very traditional and while there is a market for that, it does not necessarily appeal to everyone,? he said.