The Shadow Tourism Minister has accused the Premier of a "void in leadership", saying not enough has been done to prepare the hospitality industry for the economic challenges ahead.

Senator Michael Dunkley said instead of outlining the reality of the global economic downturn and how it could impact on Bermuda, Premier and Tourism Minister Ewart Brown had "sugarcoated" the situation.

Last night he called on Government to outline its programmes to assist hotels and staff made redundant as the recession starts to bite.

Commenting on the announcement of 35 job losses at the Fairmont Southampton this weekend, Sen. Dunkley said: "I do think it's a real surprise to many as I think many Bermudians are still coming to grips with the reality of the global downturn, that it will filter down to Bermuda.

"Also, I think a lot of people haven't been as forthright in talking about this as they should have been, specifically the Premier as Tourism Minister. Too many of his statements have been encoded with smoke and mirrors. Last February the Premier was talking about this 'Platinum Period' for tourism, then in the Throne Speech in November he talked about tourism being a 'resurgent pillar of Bermuda's economy'.

"Rather than making people feel good about what might be in store, I felt there needed to be more openness and honesty about what we were facing a very difficult period.

"The present situation we face is very dire and this winter is going to be a disaster for tourism, but I am optimistic we can get through it if there's the right leadership," said Sen. Dunkley.

"Up to this point I think that has been lacking and I feel the Premier has sugarcoated things. I am therefore calling for the Premier to come out and say what kind of plans Government has in place to stimulate tourism and also to help those people made redundant.

"We can get through this storm if we work together but I think there's been a void in leadership at this time."

Sen. Dunkley said he felt not enough had been done to prepare for hardships in the second pillar of the economy. He said he also wanted to hear more about partnerships between hotels, unions and business organisations.

"People will be concerned at this announcement (by the Fairmont Southampton)," he said. "I just don't see enough coming from many Government departments, and that is not acceptable at this time. Businesses can only do so much. I don't see the Government programmes in place to help the man in the street. Tourism affects the whole Island, from hotels to taxis to restaurants to retail.

"Here we are now facing the most difficult winter anyone can remember in Bermuda, but there seems to be no real plan in place to get through this."

Sen. Dunkley also said anyone still optimistic of major new hotel developments going ahead this year was "dreaming".

"This downturn will pass and hopefully investment will return, but there's no money out there for anyone to inject into a business enterprise like this at the moment," he said. "Until that clears I think we would be dreaming that such hotel properties could go ahead in Bermuda.

"The Premier is a master of coming up with phrases to put a spin on things to make it look like things are heading in the right direction. The 'Platinum Period' is one of those phrases, but it's been clear for a year or more that it's been very difficult for people to get the investment for these properties."

He added: "But no recession lasts forever. We therefore have to prepare for the other side, once the US economy starts to rebuild. We will have to be ready to assist investors get their projects off the ground."

The Fairmont Southampton announced the loss of 35 jobs on Friday, with the closure of half its guest rooms until April.

Managing director Norm Mastalir said the global economic downturn was having a "dramatic effect" on business.

"The economic realities faced by the hotel are unprecedented," he said. "Business, as we have known it for the last few years, will not be the same any time in the foreseeable future."

In a statement David Burch, Minister of Labour, Home Affairs and Housing, said: "It is saddening to see anyone in our community lose their job under these current economic circumstances. I can confirm that the Department of Labour has been in touch with the management of Fairmont and we stand ready to assist those affected staff in finding alternative employment."

Director of Tourism, William Griffith, added: "The news of redundancies at the Fairmont Southampton resort is regrettable, but obviously considered necessary by this employer, attempting to manage a very difficult situation.

"The Department of Tourism continues to work with all of its industry partners to maintain visitor numbers, so crucial to the viability of business. Fairmont is a key partner because of its size, and we will be providing commensurate support to them, as well as all hotel partners, to negate the effects of any business downturn."

The Royal Gazette sent the following questions to the Premier's Press Secretary Glenn Jones yesterday, for comment by Dr. Brown:

Does the Premier, as Minister for Tourism, feel this (Fairmont announcement) is a sign of more job losses to come?

Does he have any advice for other hotels at the moment?

How confident is he that the Island will weather the storm?

Is the Premier concerned the global economic climate will delay or cause new hotel projects to be scrapped? Has he had any reassurances from developers/investors about specific projects still going ahead — and if so, which ones?

And what specific plans does Government have in place to help those losing their jobs, and hotels which are struggling?

The Premier declined to comment last night. Mr. Jones referred to Sen. Burch and Mr. Griffith's comments and said: "The Premier will no doubt offer more in the future."