Hotelier John Jefferis has called for Shadow Tourism Minister Michael Dunkley's resignation, describing him as a "menace" to the Island's tourism industry.

He said comments made by Senator Dunkley last week about his hotel, Coco Reef Resort, were "idle", "ignorant" and "idiotic".

Mr. Dunkley claimed there had been "little in the way of improvement to [Coco Reef Resort] or to the hiring and training of Bermudians interested in the hotel industry" since Mr. Jefferis "was given a golden handshake of a deal by the Bermuda Government".

The comments raised the ire of Mr. Jefferis who said he has spent $10 million in redevelopments.

"I am outraged that after all the blood sweat, tears and cash that I have put into the Coco Reef, I have to put up with idiotic comments from know-nothing political opportunists like Sen. Dunkley."

Mr. Jefferis is to construct 66 villas in the New Year at the former Stonington, a hotel school site.

The villas are expected to cost $94 million and take two years to complete. A six-storey hotel is planned for later construction.

Mr. Jefferis signed a lease in 2003 which more than doubled the length of one held previously from 21 years to 50 years. The new contract reduced the amount of rent to Government, added a 1.9 acre plot of oceanfront land and gave permission to build condominiums for sale.

A 2004 Auditor General's report recommended it should be re-tendered because it was "considerably more beneficial" to [Mr. Jefferis] than the tender document specified".

Last night Sen. Dunkley said he stood by his comments.

He said he had no intention of getting into a "personal war of words with a very emotional Mr. Jefferis", but as Coco Reef Resort sits on public property, it demands a higher degree of Parliamentary oversight and accountability.

"The Auditor General's 2004 investigation and report on the Stonington lease speaks for itself and clearly points out the sweetheart deal that Mr. Jefferis received at taxpayer expense including no base rent for the first five years and an additional 3.9 acres of prime property.

"In fact, the Auditor General noted that '…the lease that was eventually executed was so materially different from the heads of terms that were the basis for proposals requested from short-listed bidders, the tendering process was effectively compromised'."

Sen. Dunkley continued: "Mr. Jefferis notes that he has invested $10m in upgrading their tourism product when in fact the Auditor General notes that his lease called for $12.9m to be spent in upgrading the hotel."

He said of Mr. Jefferis' call for his resignation: "Let me be clear on one other important point. Like Mr. Jefferis I also have confidence in the future of our Island and tourism will need to play a key role in any success.

"Recently, and on numerous occasions, I have publicly shown support for the investment in tourism and finished product done by Newstead/Belmont Hills, Tucker's Point, the Reefs and others. The success that we all hope for will only come if we respect our differences, including different opinions, and work through these."