A hotel is offering to ?pay? for the passports which American tourists will need to visit Bermuda from next January.

The Coco Reef resort, in Paget, has pledged to give its US guests a $97 voucher for food and drinks to cover the cost of getting a passport for the first time.

The new rule comes into play on January 8 and means all American citizens vacationing on the Island will require a passport to re-enter the States.

Coco Reef owner John Jefferis said: ?This is a worrying development, bearing in mind that prior to that date a valid driving licence was sufficient documentation for a Bermuda trip.

?More worrying for Bermuda?s tourism industry is the fact that only an estimated 22 percent of American citizens have a passport. In an effort to encourage potential tourists to obtain passports, Coco Reef Bermuda is offering an incentive to all tourists who acquire a new passport for the first time.

?The new passport requirement for US citizens visiting Bermuda is a potential threat to the dramatic tourism growth that we have enjoyed this year.

?By reimbursing our customers for the cost of purchasing a passport we will not only provide an incentive to encourage Americans to visit Bermuda but also raise the awareness of exactly what documentation is required for a Bermuda vacation.?

Mr. Jefferis said occupancy at Coco Reef since March had not fallen below 90 percent ? a 33 percent increase on the same period last year.