the Marriott hotel.

He said although the jobs would be lost for a time, there was the re-birth of the centre in an $100 million total renovation of the site.

Talks are underway with a US venture capital firm and a top hotel chain, who are both keen to see the resort rise from the ashes.

Speaking in New York yesterday, Mr. Allen said the closure announcement was expected but he was upbeat about the future for the facility.

"The hotel will be closed for 18 months, but it will reopen after a $100 million revamp. It will become a five-star resort and there are also negotiations with a great hotel management chain for the management lease.

"When it reopens it will be one of the finest resorts in the world.'' Although the Minister said talks were on-going he said he was fairly confident that the deal would come off, although nothing was certain until the contract was signed. He added that a good relationship with the Government was vital and there could be a question of incentives in any deal.