Tourism Minister David Allen said that none of the Island's major hotels would close for the winter season and many of the cottage colonies would remain open, keeping as many hospitality employees as possible working through the traditionally slower season.

Speaking at a forum entitled: "Managing during a recession," held at the New Testament Church of God's Heritage on Dundonald Street, last night, Mr. Allen said that his Ministry was doing all they could to keep the industry ticking over following a slow down in business that had only been exacerbated by the September 11 attacks in the US. The forum was hosted by the Pembroke branch of the PLP in response to the public's concern about the global recession and the financial impact to the Bermuda economy since the September 11 attacks on the US and those gathered were told that there were two aims, to hear from community leaders how the recession would impact Bermuda, and to explore what opportunities may result.

Presentations were made by Mr. Allen, Chief Operating Officer of the Bank of Bermuda, Phillip Butterfield, Raymonde Dill of the Bermuda Housing Corporation and David Bolden of the Emerald Financial Group Limited. Finance Minister Eugene Cox was slated to talk at the forum but had to cancel due to a clash of appointments. Similarly, Bermuda International Business Association (BIBA) chairman, Raymond Madeiros was unable to appear at last nights forum.

However, Hamilton Chamber of Commerce President Charles Gosling stepped in to give his views on how the Island would cope during a recession.

Mr. Allen was the first to speak as he had to leave to attend a meeting in Somerset, but said that although international business was the Island's primary source of revenue, accounting for about two thirds or $1 billion of Gross National Product, a further downturn in Tourism would impact on every Bermudian man woman and child as Tourism was the Island's largest employer. Mr. Allen blamed much of Tourism's woes on the failure to reinvest in the physical plant and training of Bermudians during the last 20 years, but said that the entire Caribbean had been affected by the economic downturn of the last year to 18 months.

He said that while Bermuda had experienced a 15 percent decline in visitors arriving by in June, for the same month, the Cayman Island's air arrivals had declined 19 percent and St. Lucia's air arrivals had declined 37.4 percent.

Mr. Allen also said that it was ironic that the Bermuda's tourism industry was looking forward to its best October in many years due to a number of large conventions, so successful that the annual Jazz Festival was moved to September (but was later cancelled), but many of these had been cancelled, postponed or scaled back.

And he said that it was likely that arrivals could decline by as much as 40 percent as a result of the September 11 attacks. And while Mr. Allen said arrivals were starting to creep back up, there was a "long way to go".

Mr. Allen has been busy travelling since the attacks in an effort to promote Bermuda as a desirable and safe location and has spoken with the Island representatives in the US and Europe, and said last night that cancellations from Europe had been "negligible" compared to the "free fall of US arrivals".

Bermuda's ten wholesale travel agents in the US who sell vacations to the Island commended Mr. Allen for being the first destination to meet with them to discuss the future of the industry.

He has also held meetings with British Airways and travel agents in Europe where he said the Tourism department was "concentrating lots of energy".

Mr. Allen said last night that an extra $250,000 of marketing funds had been allocated to the European market as visitors from that region not only stayed on average twice as long as visitors from the US, but it was also a more "resilient" market.

Mr. Allen said that hotels on the Island, who already reduce their rates in winter by 25 percent, had agreed to slash their rates by a further 25 to 30 percent this winter.

"They will not make money, but they will be open," he said.

And he added: "Not one major hotel in Bermuda will close and most of the cottage colonies will remain open."

Mr. Allen said he had been in talks with airlines from the US and Europe in an effort to get them to reduce their rates to the Island with the reasoning "we trim our rates, you trim your rates," and told them they should "hold hands together" in this economic slowdown.

Mr. Allen also touted his $100 credit that will be offered to visitors booking through the Islands travel agent affiliates which they must spend on the Island in shops, restaurants, sightseeing, water tours and so on.

He also promoted the "Bermuda Passport" that will be offered to every visitor, entitling them to "a wide range of discounts" from 10 to 50 percent.

"The Government and private sector is working together to survive this challenging period," he said.

During a question-and-answer session, a member of the public asked Mr. Allen: "The Hotel Concessions Act is a pretty good piece of legislation for Bermuda, but how is Government ensuring hotel operators are doing what they are supposed to be doing, as the taxpayers are subsidising the concessions?"

Mr. Allen responded that the concessions had not taken effect yet, but would be activated either next Friday or the following Friday when details of the concessions were officially "Gazetted" by Government.

And he said there were provisions in the legislation that imposed penalties on properties that did not adhere to the conditions for receiving concessions.

He said the hotel operators would be audited to show how the money was spent and Government's beliefs on the issue is: "If you don't use it, you loose it."

Panellist Charles Gosling said he may be taking advantage of the situation but took the opportunity to ask Mr. Allen a question about concessions for alcohol sales, and asked him to clarify if concessions would be given for alcohol sold locally or imported.

Mr. Allen became quite flustered but light heartedly said Mr. Gosling was indeed taking advantage of the situation.

He then added more sternly: "I don't intend to make this discussion a platform for discussion between talks with Government and the private sector."

He said the question was "misplaced" and had to leave to attend a meeting in Somerset with a delegation from the US that had to leave the Island shortly.