The Island will target European travellers in the next few months in a bid to turn around the huge slump in arrivals following the terrorist attacks in the United States.

Tourism Minister David Allen said European travellers were more resilient to terrorist activity than in the US because they have had to deal with atrocities on their own soil in the past.

Speaking at a Government press conference on the effects of the attacks on Bermuda, Mr. Allen said there was a possibility that the Island could win some group business transferred from Europe and sales activity there has been stepped up.

The Department of Tourism is currently working out a destination promotion with the public-private sector Bermuda Alliance for Tourism that will emphasise how close the Island is to the US, as well as its tranquillity. And he reiterated that Government is working with Bermuda Hotel Association on a special promotion - which is expected to include discount deals - as part of a "bounce back" programme designed to win back cancelled bookings.

As reported last week, Government has suspended plans to advertise in the US because Americans are not in the mood to travel yet, but Tourism and its marketing partners are assessing the situation to decide when it is right to re-enter the market.

Mr. Allen said repeat customers were likely to be the best source of business in the near future, and Government will look to reintroduce the retention programme, which was cut in this year's budget. A more aggressive call centre programme will be started to try to convert enquiries into bookings, he added. Bermuda, with other destinations, will feature in a special supplement in Travel Agent magazine, expressing condolences for the US victims.

Mr. Allen said there had been some interest expressed from New York in the 100 free holidays Bermuda is offering for the "heroes" who are taking part in the rescue operation at the World Trade Center. The Caribbean Tourism Organisation announced yesterday it was cancelling its annual conference scheduled for October in the Bahamas because of the ordeal suffered by many of its trading partners in the US following the attacks.