time when they are facing unheard of competition, a tribunal was told yesterday.

Mr. David Lines, a chartered accountant who compiled a report into the future and health of hotels in 1991, said it was up to the entire community to help put the hotels back on a profitable basis.

He was speaking to the Essential Industries Disputes Settlement Board which is hearing a dispute between the Hotel Employers Board and the Bermuda Industrial Union.

There are more than 30 issues involved, ranging from wage increases, pensions, tips, severance pay and holiday entitlement.

Yesterday, the Board heard that for eight years up to 1994, eight major hotels on the Island made a combined loss of $41-m, turning that into a profit of $5.8m last year.

Six of the hotels are involved in the dispute, the Southampton Princess, Princess Hotel, Marriott's Castle Harbour Resort, Sonesta Beach, Belmont and the Harmony Club.

The Board was also told that of the total cost of running the hotels, wages accounted for more than 40 percent in 1991 and in 1994.

Mr. Lines, appearing for the HEB, added: "The hotels need to increase their earnings by about 20 percent and the only way they can do that is to increase the number of people staying and by controlling costs.

"They need money to invest in their hotels to maintain standards. Many of us are very concerned about this industry because it is important to this community that it flourishes.

"We are facing price competition such as we have never faced before and it has to be through a concerted effort by the entire community that these hotels are put back on a competitive and profitable position.'' Mr. Ottiwell Simmons, BIU president, pointed out that the hotels were in profit from 1980 to 1987 and were again in profit in 1994.

They had also saved money, he added, by passing on increases in the hospital levy to employees and had tried to get the Government to give them tax concessions.

"In terms of profits and losses 1994 was the best year since 1987,'' he added. "And in terms of the percentage of costs going on the payroll we do not know how that breaks down into negotiated pay and pay awarded to the management.''