Contractors have begun the final demolition of the Banana Beach and Flamingo Beach hotels following complaints from local businesses that a dangerous eyesore had been left.

The empty buildings on South Road, Warwick, which had been used by drug addicts and prostitutes, were partially flattened at the beginning of this month to prevent them being used by vagrants

Local businesses hit out after a demolition team hired by the owners of the site left the buildings half flattened, which nearby holiday apartment owners said would put off tourists and residents.

Lynn Rayner, who manages the Sandpiper Apartments overlooking the site, said a new team of contractors began knocking down the remains of the buildings on Friday and will continue today.

She said she believed publicity in the media had helped persuade the site owners to demolish all the buildings, even though the Planning Department said they were structurally sound and did not need to be flattened.

"The owners have agreed to flatten the property and new contractors came on Friday to begin. I'm assuming they will come again on Monday," she said yesterday.

"I'm pleased we've been able to get some results, but there is still a lot of work to be done and the rubble has to be taken away.

"I was going to go to the minister about this because I was so shocked that planning didn't think it should be pulled down completely, but The Royal Gazette coverage has been a big plus."

Banana Beach and Flamingo Beach closed in the late 1980's and the site was earmarked by Ritz-Carlton for a hotel.

But the project collapsed in 1991 when the Japanese backers pulled out due to problems in the Far East financial markets.

Shadow Tourism Minister David Dodwell said yesterday: "Something has to be done to clean it up because we are talking about Bermuda's image and tourist product."

Lawyers Appleby, Spurling and Kempe, who act for the American owners of the site, have refused to comment on the issue.