The restaurant at a popular, local hotel partially owned by Hollywood star Michael Douglas has closed down, forcing a number of staff out of work.

A press release from Ariel Sands resort yesterday said the closure of the hotel's only eatery - Caliban's - was a direct result of the decline in Tourism following the September 11 terrorist attacks in the United States.

Caliban's had been in operation for forty years.

Ariel Sands closed the restaurant and the hotel on January 2 to undertake renovations, however, while the guest accommodations re-open March 9 the restaurant will not.

“The food and beverage staff have been made redundant and are receiving the appropriate redundancy wages in accordance with BIU regulations,” said general manager John T. O'Brien.

“Ariel Sands is currently in the process of analysing its options in regard to guest meal services. We would like to take this opportunity to thank staff and patrons, who have supported the restaurant over the years.”