US authorities yesterday issued advice to stranded Americans running out of money after some airlines stopped picking up the bills for passengers diverted during Tuesday's terrorism crisis.

And stuck US citizens have contacted their Consulate to complain that Grotto Bay Hotel was exploiting the situation - a claim the hotel denied.

A spokeswoman said the US Consulate called the Department of Tourism yesterday and Grotto Bay dropped their rates. She said: "There are people who are complaining they have no money left and they are worried about what they can do. I have had calls from people who feel they are being gouged from people stuck here."

Bermuda Hotels Association President Billy Griffith said a set rate of around $100 a night had been agreed for those passengers who had come on diverted planes.

And his association had urged a reduction of rates for those stuck here for longer than planned because of grounded flights.

He said that meant some hotels might be charging more than others, just as they did before the reduction.

"It's for the hotels to determine," he said, adding that Grotto Bay was not in the Association.

Grotto Bay manager JP Martens said his hotel had been sensitive to the plight of stuck tourists by dropping their rates from $255 per room per night to $168 on Sunday when tourists first got stuck in Bermuda because of Hurricane Erin.

And he said the hotel had unilaterally dropped rates yesterday to $90 a night, plus tax and gratuities, made retroactive to Wednesday night for those who were stuck.

He said: "We are not making any money."

Acting Consul General Karen Emmerson said: "Americans plan for two weeks vacation. If they stay longer it can blow their budget for six months as Bermuda is not like Mexico. You can't get a place to stay for $20."

Acting US Consul Jennifer Schools said: "I am hearing people ask how can they pay for extra nights."

She urged people to call home to get their limits raised on their credit cards or wire money. Loans from the US Consulate are another option said Ms Schools but she urged this as a last resort.

She said: "It takes 24 hours to get them and if you don't pay them back your passport won't be renewed."

Well-wishers have called the American Consulate, which opened for business again yesterday, to offer money to help the relief effort after Tuesday's terrorism attack in America.

The Consulate will today be trying to find out today where money can be channelled.

Ms Emmerson has written to Premier Jennifer Smith to thank her for the Bermuda Government's sympathy and support after the tragedy.