hotel by selling them bus tickets at inflated prices, a resident has charged.

Mr. Marshall's company, Raphael Ltd., is the second largest shareholder in Grotto Bay Properties Ltd., which owns Grotto Bay Beach Hotel.

A woman complained to The Royal Gazette that Grotto Bay buys up books of bus tickets, then sells them individually to visitors for a profit.

"The Minister of Transportation is always saying we should do this and that for the tourist, but does he tell us what he and other members of his staff are doing to them?'' the woman asked. "They are ripping them off.'' The hotel buys books of 15 tickets for 3-zone for $10, then resells them for $1.50 each, turning a profit of $12.50 on each book, the woman said. It also resells $18 14-zone books at $3 per ticket, turning a $27 profit on each book, she said.

A hotel spokeswoman yesterday confirmed those are the prices charged. "What's the problem?'' she asked.

Mr. Marshall said yesterday he was unaware of the practice. Other Grotto Bay shareholders include United Bermuda Party MP Mr. Ernest DeCouto and UBP chairman Dr. James King.

Mr. Larry Jacobs, assistant director of the Public Transportation Board, yesterday condemned the sale of marked-up tickets, which he said was not widespread but practised by some Bermuda hotels.

"It may not be illegal, but we don't feel it's treating our tourists in the way we feel they should be treated,'' Mr. Jacobs said. Upon receiving a complaint, "we either write a letter, or call whoever is doing it to let them know we think it is unethical.'' Also, "we are working with the Ministry of Transport to in effect make it illegal,'' Mr. Jacobs said. "That would require legislation.'' Mr. Jacobs admitted the PTB had looked into allegations about the resale of bus tickets at Grotto Bay.

More than a year ago, the PTB met with "key staff members'' at the hotel and received assurances the practice would stop, he said. "I haven't heard of any allegations since then,'' Mr. Jacobs said.

But the woman, who did not want her name made public, complained of a lack of action by the PTB, which comes under Mr. Marshall's authority as Transport Minister.

Mr. Marshall said he was on the board of directors of Grotto Bay but did not know about the ticket sales. "If they're doing that, it's obviously wrong,'' said the Transport Minister, adding that he was unaware of a similar complaint last year.

"I'm certainly going to check on it.'' In November, the PTB set up a programme as "a convenience for tourists'' by which hotels can sell bus tokens and passes from the front desk, Mr. Jacobs said. "But part of the agreement that the hotel signs is that they will not sell any PTB tokens, passes, or anything at greater than the face value.'' So far, about 15 hotels have joined the new scheme, but "Grotto Bay is not currently signed up,'' he said.

Mr. Marshall said he did not know whether Grotto Bay had joined the programme or not.