That is what Bermudians must provide visitors if the Island is to enjoy a modest tourism recovery this year, the president and chief executive officer of the Bank of Bermuda Ltd. said yesterday.

In a letter to shareholders, Mr. Donald Lines said 1993 would be "a challenging time for management.

"It is essential for all who are involved in the tourist industry to do everything possible to avoid confrontations, make visitors feel welcome and to offer real value for amounts paid,'' Mr. Lines said.

Modest increases in visitor arrivals and spending this year depended on "an improvement of the quality of services offered to visitors and little or no increases in prices -- for tourists are now extremely price sensitive and expect great value for their dollars,'' he said.

"Our expectations are also tempered by the possibility of disruptions in service, due to labour disputes, for these would not be acceptable to those we hope to attract to the Island.'' Mr. Lines said despite reduced incomes and individual hardship cases, "Bermuda has not really suffered the effects of the recession in North America as drastically as many of our customers.

"Most Bermudians have been able to adjust their spending to lower levels of income without difficulty.'' Bermuda could expect more guest worker departures as the Canadians withdraw from their military base and the US Navy reduces the size of its base, he said. "This in turn suggests further shrinkage in our economy and the need for even greater trimming of government expenditure to adjust to lower levels of revenue.'' Government must "re-address'' rules intended to discourage non-residents from living in Bermuda. Tax and stamp duties on condominiums purchased by non-residents, and the Annual Rental Value of properties which qualify for foreign ownership must be reduced, he said.

"It should be noted resident visitors generate employment for real estate agents, maintenance and a variety of trades people, as well as revenues for Belco, Telco and other local support services,'' Mr. Lines said.

The bank helped stimulate the local economy last year by proceeding with its new building on Bermudiana Road, Mr. Lines said. The $44-million project, expected to be completed in May of 1994, will increase Government revenues this year by about $4.5 million in duty and additional payroll taxes, he said.

Mr. Lines told shareholders Bank of Bermuda earnings for the first half of the year were not yet available for release, but there was "a substantial increase in net income,'' due to growth in international business and cost controls.