problem, Mr. John Marriott said Tuesday night.

The hotel chief listed too many Government taxes and duties, a costly lease with Bermuda Properties Ltd., which owns the hotel site, and unproductive labour arrangements.

"We pay the Government $3 million a year in duties and taxes,'' Mr. Marriott said from Maryland. "That's a lot of money.

"By the time you pay the Government $3 million, another $1 million to the landlord, $1 million to management and then you don't have a really productive year, you don't make any money.'' Mr. Marriott was questioned about the Castle Harbour resort following his remark last week that he would recommend closing the hotel if Government did not offer significant tax relief.

It was the second time this year Marriott threatened closure. In February, Marriott said it would pull out of Bermuda if it continued losing money.

Last week's threat followed a meeting in which Government offered the Island's major hotels only $100,000 in tax breaks on demands of $7 million. Mr.

Marriott said he was still frustrated by the meeting but hoped Government would come back with more.

He was in the midst of writing to other Bermuda hoteliers urging the need to remain united in their push for further breaks.

"Our hotel won't survive if we don't get more,'' he said. "This has to work.'' But the push for more tax relief reflected just one aspect of Marriott's problems.

Mr. Marriott acknowledged the hotel could have negotiated a better lease with Bermuda Properties, which owns the 250-acre property on which the 402-room hotel sits.

It was "unfortunate'' Marriott had not secured control of the resort's 18-hole golf course business, he said.

Last year, the golf course grossed about $3 million in receipts. But Marriott earned only a relatively small management fee from it.

In addition, the company failed to negotiate any piece of the lucrative cycle rental business on the property.

General manager Mr. Roger Borsink revealed yesterday that the lease with Bermuda Properties is for 25 years. There are no clauses for renegotiating the deal before that period is up.

Mr. Marriott said Bermuda Properties was going to give his company "some concessions'' on the golf operation "so we can build the off-season market.

"I think that's the key to success, to market it as an off-season resort for golf. It's perfect weather for golf.'' Mr. Marriott noted last week's Memorial Day weekend strike by unionised workers and described Bermuda labour as a challenge.

Wages were not a particular problem, he said.

"They're high but they are not out of line. They are about what they are in New York City.'' Mr. Marriott said he was more concern with unproductive arrangements in the collective bargaining agreement. He mentioned clauses requiring 100 percent staffing when the hotel has more than 70 percent occupancy and clauses that restrict the amount of work chambermaids can do if occupancy falls below 70 percent.

"Productivity is not good,'' he said.