Bermuda should redouble efforts to woo overseas investment in hotels, a top banker has declared.

Bank of Butterfield president Michael Collier urged the Island to send out more positive signals.

"We need to become more flexible than we have been in the past.'' Mr. Collier's plea comes in a letter to shareholders which voices serious concern over Bermuda's economy.

He said the number of visitors coming to the Island -- and their estimated spending -- remained disappointing.

But Bermuda's was not in a unique position, added Mr. Collier, also chief executive officer.

"...it is worth noting Bermuda is not alone in facing a difficult and changing tourism market: not all of the resort islands to our south (nor those around Europe) are doing well either.

"We are not alone in the challenges we face. The tourism industry and its customers' demands are challenging, and we must change our ways if we wish to compete.'' Mr. Collier said Bermuda should not throw so many obstacles in the path of potential investors.

"In particular, we must accept some of the stipulations of those who are prepared to invest (and, in some cases, to invest heavily) in improving our hotel properties and generally providing additional high quality amenities to enable us, in partnership to attract visitors to our shores.

"We need them and the foreign currency which they bring. We must always remember that they have plenty of alternatives, whereas we do not.'' Mr. Collier went on to heap praise on the Bermuda Police Service for its efforts to tackle crime.

"Clearly all the money Bermuda spends on promoting tourism can be wiped out as a result of bad news, in particular when that bad news involves the safety and well-being of our visitors.'' Last night Mr. Collier was sick and unable to elaborate on his comments on overseas investment.

Bank of Butterfield executive vice-president, group business development, Stephen Kempe believed Mr. Collier had the Marriott's Castle Harbour Resort controversy in mind.

Plans by Bermuda Properties Ltd to develop an 11.6 acre site on Ship's Hill -- as part of the redevelopment of Marriott's -- have run into heavy opposition.

Save Open Spaces, an environmental group, slammed the proposals to build a golf centre and club house, health club and spa and residential units.

Both the Bermuda National Trust and Save Open Spaces are concerned about the effect the development will have on the cave system below Ship's Hill, woodland and native species in the area.

They believe waste could seep into the system and destroy the habitat of animals and plants unique to Bermuda.

Said Mr. Kempe: "There is a proposal to invest a considerable amount of money in Marriott's.

"I think Mr. Collier is trying to make the point generally that our hotel industry needs additional capital and we need to spruce up the product.

"He is saying we should be more broad-minded, we need additional capital in this Island. That's not to say we shouldn't take into account environmental considerations.'' Mr. Kempe said it was important to consider the investor's needs for a return on capital and how many jobs would be created.

He added: "Bermuda has got to change. If we are to remain in the Tourism industry we have got to look at new ways of doing things.''