investment with cash sweeteners.

And Chamber of Commerce president Cris Valdes-Dapena welcomed the financial package which the owners of the closed Marriott's Castle Harbour Resort hope will attract the Regent chain to manage the property.

But she warned Bermuda would have to continue to come up with fresh ideas to breathe new life into the tourist industry.

Ms Valdes-Dapena said: "Return on investment for hotel investors has been inadequate to stimulate new investment -- it's absolutely incumbent on Government to do what it can to make that kind of investment attractive enough to offshore hotel groups.'' Businesses back tourism initiative She was speaking after a Chamber of Commerce board meeting overwhelmingly backed the deal struck by Government, which gave a $30 million guarantee -- in addition to breaks on land tax, payroll tax, duty-free drinks and employment of Bermudian entertainers -- to help developers trying to raise the $200 million needed for the proposed 200-room development.

Other plans for the Bermuda Properties Ltd.-owned site include timeshare properties, a spa, shops, conference centre, golf course and luxury homes.

The $30 million -- the credit security account -- will be funded by land licence fees from the sale of the houses at Ship's Hill and Castle Harbour.

Bermuda Properties has already signed letters of intent with Regent International.

Ms Valdes-Dapena said: "It's not uncommon for jurisdictions, for all sorts of reasons, all over the world, to offer tax incentives to attract investment.

"It's a calculated risk that money you invest in this manner will be returned many fold by the increase in capital which comes in.

"And jurisdictions around the world would not continue to take these steps if they did not continue to be worthwhile.

"Our tourism industry is a textbook example of such injections being required.

"It's going to continue to be necessary to keep on thinking outside the box.

Bermuda has constrained its ways of thinking about commercial growth for a long time in too many ways.

"This step which has been taken is a first indication that we're really beginning to break some of these strangleholds on our pattern of thinking.'' Ms Valdes-Dapena sits on a special private sector think-tank on tourism, set up to boost the industry, which also includes trade unions.

But she was staying tight-lipped on any recommendations the group might make.

She said: "I'm not prepared to make specific suggestions at the moment -- but we will be coming forward with suggestions, which will be a product of consultation with the private sector as well as the Ministry of Tourism.'' But under consideration could be a new approach to selling Bermuda -- with the private sector taking a bigger part in marketing, to better match what is on offer with specific market sectors so visitors do not feel disappointed.

And the group might also consider backing a shuffle of manpower and resources within the public sector to find a more efficient mix to sell the Island overseas -- especially in new market sectors -- and drawing a sharp line between Bermuda and its competition in the minds of potential visitors.