giving established island destinations including Bermuda cause for concern.

By the year 2000 Cuba is estimated to have 40,000 hotel rooms -- twice the number of Jamaica which receives 1.5 million visitors a year.

Tourism Minister the Hon. C.V. (Jim) Woolridge admitted Cuba posed a threat to all tourist destinations.

The communist country, which attracted 800,000 visitors last year, has made concerted efforts to revamp its tourist industry by increasing room numbers by 6,000 in this year alone. Over the next decade, Cuba hopes to draw 3.6 million visitors to its shores.

With the Cuban economy in tatters following the collapse of European communism, the country is now working hard to attract investors. And with low labour costs, it would be able to offer visitors inexpensive holidays, Mr.

Woolridge said. Leading Jamaica-based and other Caribbean businesses have already begun to invest and while an embargo barring US citizens from entering Cuba is still in place, Caribbean leaders are worried that Washington may be reconsidering its position.

Mr. Woolridge warned the embargo would not last forever.

North American and European visitors would be attracted to Cuba, the favourite haunt of writer Ernest Hemingway and exporter of Havana cigars, for its great entertainers and beautiful beaches, he said.

"Cuba will be a threat to all the Caribbean. The closer islands like Jamaica are deeply concerned.'' Mr. Woolridge pointed to increased competition as one of the reasons behind sinking air visitor arrivals which fell by almost 13 percent in the second week of this month and which put total arrivals by air for the year-to-date at five percent down from 1994.

By contrast, almost all five cruise ships were filled to overflowing between July 10 and 16 boosting ship arrivals by more than three percent compared with last year.

But it was not just Bermuda that was feeling the pinch Mr. Woolridge said.

Other destinations were also suffering as governments stepped up summer campaigns to attract visitors. "We are not the only ones in the doldrums,'' the Minister said.

The Bahamas had spent $10 million on advertising while Canada and Florida had also spent millions. Discounting by other destinations had also put Bermuda at a disadvantage, he said.

However, he pointed out that too much emphasis was placed on weekly arrival figures. Short term increases and decreases were not significant. More important was length of stay and visitor spending.

On a brighter note, Mr. Woolridge said US wholesalers had indicated September and October bookings were looking "reasonably strong''.