Norway's Kvaerner Corporation has sold its 90-percent share in the cruiseship Royal Majesty to Norwegian Cruise Lines, which operates the Dreamward . Both ships are regular summer visitors to the Island.

The picture is further clouded by NCL's plans to pull the 1,050 passenger Dreamward into drydock after the 1998 season to add an extra 90 feet to her length. The purchase of Royal Majesty for $190 million now brings NCL's fleet up to nine vessels, with a passenger capacity of 10,650.

"We've been officially informed of the sale and we were told there'll be no changes to the schedule at this point in time,'' Minister of Tourism David Dodwell yesterday told The Royal Gazette . "As far as I know it's a straightforward sale.'' The Royal Majesty -- presently chartered by minority shareholder Majesty Cruise Line -- is contracted to sail to Bermuda until the year 2003, said Mr.

Dodwell, and "substantial penalties'' would be levied against the new owners should the contract be broken: "We expect them to adhere to it (the contract).'' Meyer Agency's Henry Hayward said it was impossible to say what could happen next: "I haven't seen the sales of vessels so active.'' Meyer acts as the Bermuda agent for NCL and Majesty Cruise Line, which holds a ten percent share in the Royal Majesty .

NCL will honour all 1997 season commitments said Mr. Hayward, and will probably decide the fate of the Royal Majesty in the next few months.

"These things take a bit of lead time. For the time being they (NCL) could very well continue to operate two vessels out here,'' said Mr. Hayward, pointing out advance bookings for the Royal Majesty -- which sails between Boston and Bermuda 26 times this year -- appear to be strong.

"But that's at the present time; things can change drastically in this business,'' he added.

UK-based shipping publication Lloyd's List quoted NCL spokesperson Geir Aune as saying: "We have a twin strategy. Firstly not to compete with the mega-ships by visiting smaller Caribbean resorts, and also by offering a more intimate and personal style.'' And that strategy, pointed out Mr. Dodwell, was reassuring: "That fits right in with the Bermuda experience.'' News of the sale comes weeks after it was revealed Celebrity Cruises will be pulling its 1,100 passenger Meridian from Bermuda at the end of this season.

Sold to the Singapore-based Metro Holdings Ltd. for $62.15 million, Meridian is scheduled to reposition itself in the Far East cruise market in 1998. Talks are underway to find a replacement, Mr. Hayward said.

Bermuda's 1997 cruiseship season -- set to open in late March with the arrival of the Black Watch -- was hit early with bad news when it was revealed Dreamward would be cutting its season to sail between New York City and Montreal in September and October.

Mr. Hayward was unable to say what fate awaits the Dreamward following her re-fit.

Meanwhile Mr. Dodwell admitted he and Bermuda were being courted by Carnival Cruises and the Port of Baltimore; the two have recently signed a partnership agreement and on March 17 will be hosting a reception on the Island to increase their profile.

"I want to stress the Department of Tourism is not officially involved with this reception,'' Mr. Dodwell said.

Carnival Cruise Lines however have made overtures to Bermuda before, noted Mr.

Dodwell: "I have said we cannot entertain any applications until our cruiseship policy review is complete.'' That review is now before Cabinet and is expected to be made public within the next month.