Bermuda's premier private members club suffered significant financial losses last year, resulting in redundancies and a restructure of the organisation.

Yesterday, club members of the Tucker's Point Golf, Beach & Tennis Club were informed that the facility was struggling due to the "serious economic conditions" affecting Bermuda and the tourism industry.

In a letter to members President Edward Trippe said: "I think many of you are also aware of the implications for Tucker's Point and significant losses we have experienced at the Club.

"While we continue to make every effort to provide quality services at the Club and at the Tucker's Point Resort, we have regrettably been forced to take significant steps to mitigate our losses."

Mr. Trippe said the position of Senior Vice President and General Manager of the club would be made redundant. Mark Orchard held that position since 2005.

Mr. Trippe added that he was working with the newly appointed executive vice-president and general manager for Tucker's Point Hotel & Spa, Brian Young on a new management reorganisation.

Speaking yesterday afternoon Mr. Trippe told The Royal Gazette one of the reasons the Club has not done well is because of poor air arrivals.

"Golf rounds Island-wide have been way off prior years because of the decline in tourist arrivals, and all golf clubs on the Island have suffered losses," he said. "We believe as the economy turns around our golf play will return to prior levels and the Tucker's Point Club will return to acceptable levels of profitability."

While the Club has not fared well in 2009 Mr. Trippe said the hotel, which opened in April last year, has done better than they expected. "It has been a difficult year for Bermuda's hospitality industry," he said. "However 2009 exceeded our forecasts in terms of occupancy and room rate."

As for the Tucker's Point Residence Club, Mr. Trippe said they have sold 80 percent of their fractional units. "Fractional sales and indeed all real estate sales virtually came to a halt in October 2008," he said. "However 2009 has seen a recovery and I am pleased to report that sales are now picking up.

"We had eight fractional sales in 2009 and the interest over the recent holiday period makes us encouraged that the economic pressures experienced in the past few years are behind us. We have a total of 340 fractional units in our fractional ownership programme and approximately 65 remain to be sold. The Tucker's Point Residence Club has been one of the most successful fractional ownership programmes in the industry."

Bermuda Democratic Alliance spokesman for tourism Shawn Crockwell said the fact that Tucker's Point was struggling did not bode well for other developments: "This will definitely have a deleterious impact on proposed hotel developments. The Government could not attract new hotel development during robust economic times so with the economy in the shape it is currently in it is nonsensical to think that new hotel development in Bermuda is imminent."