The Department of Tourism last night moved to scotch reports that up to 20 staff may face the axe in the US as the New York tourism office is downsized.

A new US firm has been brought in to promote the Island there, sparking fears of large scale job losses among the Bermudians working there.

However, in a statement issued yesterday evening, Cherie Whitter, Permanent Secretary of the Ministry of Tourism and Transport, said: "Some overseas tourism workers have applied for jobs with the new sales firm tapped to manage the sales function for Bermuda tourism. In some cases interviews have already been conducted and offers have been made.

"Meantime, in the wake of a plan approved by Cabinet, the Ministry of Tourism and Transport can reveal it is on course to reduce and restructure its North American tourism staff to 17 posts. There are 25 Tourism posts currently filled in North America.

"It is expected that eight employees will need to be repositioned someplace else within the civil service. However, the final number may be lower than eight depending on whether any of the remaining employees are scooped up by the new sales firm."

Ms Whitter continued: "We are ensuring our people are given a fair chance to compete for these new positions with the new firm. Candidates who choose to apply and are eligible for the job will have our full support. Those returning home to Bermuda will also have our support in finding new placement within the civil service."

Ms Whitter said the Ministry currently has at least 15 vacant posts within its departments and officials plan to look to those areas first as potential alternative employment for staff seeking a new position within the civil service.