Bermuda's tourism industry is steadily losing ground to its competition and will continue to do so until Government's tax structure recognises the seasonality of the enterprise.

And the present decline in air arrivals is the result of more than just external factors because Bermuda has been resting on its laurels for too long.

Contentious assertions? Maybe. But Shadow Minister for Tourism Mr. David Allen is one of several Bermudians displeased with the trends he observes in the Island's premier industry.

"When you examine the long term picture,'' he explained. "The underlying problem is that we as a country are today paying the price for the past 20 years of stagnation and a sheer lack of innovative and forward thinking.

"Some blame for this situation rests with the Tourism Minister. He has to accept quite a bit of the responsibility for the underlying malaise.

"During his first incarnation, not all of our hotels remained competitive in their pricing and physical plants and that had a lot to do with Government's lack of leadership.

"After all it is Government that controls the budget, but the United Bermuda Party seems to see Tourism as a cash cow for the tax coffers.

"If they are not yet flogging a dead horse it's surely on its knees because it cannot cope with the demands placed on it.'' Mr. Allen said the PLP has called on Government to give more tax incentives to hotels because of the seasonal nature of the enterprise with busy summers and slow winters.

However, he said Government has not recognised the seasonality of the industry when it comes to taxes.

As an example, Mr. Allen pointed to the 1990 budget where taxes on diesel, property and head taxes as well as increased duty on wine and spirits served to increase vacation costs.

More recently, the Shadow Minister said an increase in the Airport head tax from $15 to $20 could not have come at a worse time.

Instead, Mr. Allen said Government needed to decrease the head tax during winter months because this would send the message to visitors that Bermuda was serious about price sensitivity.

Similarly, hotels could offer such things as free golf and tennis, or an extra liqueur, and gear their facilities toward families with nannies and computer classes for their children.

Taxes on cruise ships could also be done seasonally with port fees and taxes lessened in the winter season.

Mr. Allen said the present slide really began in the 1980s but it was aggravated in the 1990s, especially between 1991 and 1993 when North America was in recession.

"To get us out of this slide we need Government to adopt a more pro-active stance that would focus more on contingency planning instead of ad hoc on the ground efforts.

"The Ministry's advertising budget is down, although the marketing budget is up by a hair's breath. When you factor in inflation we are clearly losing ground.

"We are now one third behind in our buying power while our competitors in the Bahamas, Europe and the Caribbean are spending more money on promoting themselves.'' Mr. Allen said financial constraints notwithstanding, Government needed to spend its limited dollars wisely and promote the Island as a cultural and ecological destination.

Such facets as Bermuda's underwater life, its railway trails, forts, the Aquarium, the Maritime Museum and the Bermuda Biological Station, he said, are key selling points that need to be boosted.

Other activities that Bermuda can use to attract visitors are its deep sea fishing, scuba diving, wind surfing, parasailing and cave exploration.

Furthermore, Mr. Allen said the hotels needed to explore some of these ideas and use them to woo the cruise visitor.

"They have to see (cruise ship passengers) less as competitors and more as potential guests and make it work for them.

"They can have more beach parties, shows and tours of their facilities so that the cruise visitor on that first visit is looked upon as a potential air arrival.

"We need a weekend cruise ship too with no head tax. We spent all that money to build docks yet they are empty on the weekends.

"All of these are creative strategies that could be employed. It's too bad Dr. Saul is too much of a Yes man who is willing to acquiesce and produce budgets with taxes that are punitive to the industry.

"Dr. Saul has compressed the tax base. He should be expanding it judiciously.'' Mr. Allen said Bermuda's low crime and weather and lack of potholes and obvious signs of poverty are selling points that must be disseminated.

"This is not a put down of other countries,'' he said. "But when you have a selling point you should push it.

"We need to deal with the many misperceptions about Bermuda as an expensive destination for the upscale visitor. While I accept that we cannot be all things to all people, we can certainly be more diverse.

"We need the upscale visitor, the retired folks, the yuppies and the family travellers too.'' Mr. David Allen