High prices, poor service and insufficient value are the major stumbling blocks to selling Bermuda holidays, European tour operators told tourism authorities this weekend.

And despite millions spent refurbishing properties in recent years, the quality that is expected based on the high prices is simply not yet there it was said - with agents referring to cobwebs in the rooms, dust under the beds and formica in the bathrooms.

Twenty-two tour agents who sell package vacations in Britain, Ireland, Germany, Switzerland and Italy were on the Island this weekend for a three-day presentation held at the Hamilton Princess.

The agents were introduced to Bermuda's new discounts which are hoped to spur travel to the Island and briefed on what Bermuda has to offer.

Tourism authorities have turned their attention East as Europeans are still travelling while Americans are homebound in the wake of the September 11 terrorist attacks.

And Bermuda has seen a gradual rise in bookings from Europe with tourism's European Co-ordinator Ian Parker pointing out in a Saturday meeting that there has been a 40 percent growth in volume over the past decade.

Mr. Parker said that European tourists are valued in Bermuda as their length of stay on the Island is longer - averaging ten days - and they spend 1.8 times more than North Americans.

He told the agents, the time is ripe to sell Bermuda as a safe, relaxing destination which can easily be combined with a North American destination as a two-centre holiday.

Tourism Director Judith Hall-Bean took the agents through a range of new price reductions - 20 percent off hotel rooms, 50 percent off buses and ferries, ten percent off scooter rentals and unspecific specials and restaurants and retail stores - arranged to boost tourism and the agents were encouraged to negotiate a special deal with the hotels individually.

Saturday's meeting included presentations by Cambridge Beaches general manager Mike Winfield, Tourism Minister David Allen and Bermuda Hotel Association president William Griffiths before breaking into an open forum where agents were encouraged to offer constructive criticism for Bermuda.

But, while agents said they had seen improvements in Bermuda, there is still much to be addressed in order for the Island to become a major draw for European tourists.

Bermuda "still has a long way to go", said John Dixon of Prestige Holidays in the United Kingdom.

"The one issue above all Bermuda has to address is quality versus price. It's very expensive in a world with a lot of cheaper comparative destinations and we all have to work together to try and match that quality and price."

While many agents seemed aware of Bermuda's unique constraints in terms of pricing - high costs for labour and shipping in goods - they said the costs are simply not justified by the quality.

Even the best Bermuda hotels are still of lower standards than their Caribbean counterparts, said one agent.

Another agent said that while activities highlighting Bermuda's culture and heritage are very nice, "the main thing clients are looking for is good weather and value for money".

"For us the 20 percent discount is fantastic," he said. "I'm disappointed we're getting it only in response to a global tragedy. We've been asking for this for years."

Many agents also suggested that more needs to be included in the price of a Bermuda holiday such as meals, airport transfers and free transport to the beach.

A woman who books dive trips all over the world said this is the only country where the dive shops are not allowed to pick up their customers.

Tourism Minister David Allen explained that Bermuda has many entrenched interest groups which are very strong due the Island's small size but "the upside is that we are more accessible, have a very low crime rate and you're not sealed into a compound here."

Following the forum the agents were to mix with local hotel personnel to negotiate new packages and specific details.

And British Airways general manager Phillip Troake was on hand to re-assure agents that BA is committed to its London-Bermuda route and open to increasing service should demand rise and negotiating fares with tour operators.