As Finance Minister Eugene Cox ponders whether to introduce a $20 increase in cruise ship passenger taxes, which are already the highest in the world, further south in Puerto Rico the authorities have decided to slash their cruise tariffs by 25 percent.

The Puerto Ricans, who focused primarily on land-based tourism until recently, have also improved their port facilities as part of a rethink which recognises the importance of cruise ships to the economy.

In Bermuda, local shipping handlers believe Government could learn some lessons from Puerto Rico and that the Island has to completely reassess its attitude towards cruise ships to make the vessels and their passengers feel welcome.

John S. Darrell president Donald MacPherson said cruise passengers get treated worse than hotel guests, and the Island doesn't seem serious about encouraging cruise lines to bring more people to Bermuda.

He said Puerto Rico recognised the vast marketing muscle which the cruise industry has in attracting visitors, some of whom will return as hotel guests. Best of all, it doesn't cost a cent in advertising as the cruise lines do the marketing themselves to sell the berths.

Hotels have lobbied to keep a cap on the numbers of cruise passengers because of the competition. Their primary argument is that cruise passengers spend a fraction of what hotel guests do - $151 on average compared to the $1,369 spent by hotel guests, according to Government statistics in 2000.

But Mr. MacPherson said cruise visitors often come back to stay in a Bermuda hotel after getting their first taste of the Island while on a ship.

And he said Government should follow the example of Puerto Rico where the government there showed strong political leadership to embrace the cruise industry. "We have to change our whole attitude. You'll get passengers who spend the day on the beach and they try to get a taxi and drivers won't pick them up because they don't want their wet costumes on the seats," Mr. MacPherson said. "You would think they could put down a piece of plastic or something so they don't mess up the seat. Our head tax compared to the Caribbean islands is astronomical.

"There seems to be no rhyme nor reason to it and it's gotten right out of hand. It's crazy, it seems that we are fighting against them rather than taking advantage of the cruise lines who are bringing them here.

"I won't get two weeks into the season before I get a call from a major hotel complaining about passengers down on the beach and maybe using the towels.

"Instead of saying `you can't use the towels, they are for guests, but feel free to use the beach and the bar', they should take advantage rather than calling me saying `come down here'.

"We have to figure out how the hotel and land businesses can take advantage of cruises in some way.

"We should take advantage of these people and their advertising dollars and the people they are bringing to Bermuda. It seems to me there should be some sort of bridge between the cruise lines and the local businesses, hotels in particular.

"The hotels are using the line that air passengers spend more money than cruise passengers, but you can't just turn your back on that income.

"The cruise lines are doing all the advertising and we are not spending any dollars to bring these people here.

"One misconception is that if a person doesn't take a cruise to Bermuda they will fly, but it is not the destination, it is the cruise experience they are buying. If they can't cruise to Bermuda they will ask their travel agent where else they can cruise to."

He echoed calls made in today's Royal Gazette by Royal Caribbean International and Celebrity assistant vice-president Mike Ronan that Bermuda drop the proposed passenger tax increase - which would hike fees per passenger from $60 to $80 from May to August for ships visiting Hamilton and St. George's. The two men also suggested that Bermuda even lower the tax.

In an addition, there is also a tax of $16 per cabin, assuming there are two passengers in each cabin.

Captain John Moore, of Meyer Shipping, said: "In terms of attitude, I think the feeling is that there is not the same emphasis on cruise passengers as those who stay in hotels. The cruise ship passengers and the ships themselves - in terms of port taxes, wharfage and pilot boats - contribute a great deal to the economy."

Bermuda Hotel Association President William (Billy) Griffith said he was not aware that cruise ship passengers were treated as second class citizens, and he claimed they get a better welcome than in most places.

"I am not aware of people chasing cruise passengers off the beach and making them unwelcome. It is not fair to make a sweeping statement that cruise ship passengers are made unwelcome," he said. "I didn't know of a difficulty related to one beach but I don't think it's typical of the treatment cruise ship passengers receive in Bermuda. In fact, relatively, I would say cruise ship passengers get a better welcome in Bermuda than other places."