October was shaping up to be the best month of the year for Bermuda Island Cruises (BIC).

But that all changed with the September 11 terror attacks on the United States. Now, says company president Derek Morris, with several companies cancelling bookings for the month, their destination management company, Bermuda Incentives and Conventions is looking at $1 million worth of lost business.

Citing a coming crash crunch, he is calling for Government, the banks, the public utilities and landlords to do what they can to help Island businesses cope with the economic fallout of the attacks.

At least three companies contracted with BIC have cancelled October meetings on the Island, including telecom giant Verizon and F and G Insurance. That represents about 1,500 people and tens of thousands of dollars in lost income their spending would have generated for the hospitality sector.

BIC would have netted about $350,000. And, according to Mr. Morris the Fairmont Southampton Princess is the hotel hardest hit by the cancellations.

BIC has not laid off any full time staff, but shifted to a four day work week. And their summer staff finished up a month early.

"October for us looked like a good month - one of our best months of the year," Mr. Morris told The Royal Gazette.

"Ninety-five percent of our groups cancelled. In terms of real dollars, $1 million went out the door."He said there were indications that some groups may rebook for the spring. "If that happens we're going to have one of the best springs ever."

The company, like others in the sector, hoped for strong sales in the fall to tide them through what was expected to be a bleak winter.

Plummeting demand for air travel has also impacted cruise ship business as passengers are cancelling their bookings because of the added inconvenience of travelling over land to get to their ports of embarkation.

Mr. Morris said that last week's Celebrity cruises were half full and, although the convention business was the hardest hit, he expected a "major" downturn in his water-tour business as well.

"We're taking each day at a time. I'm not exactly sure what we're going to do but we'll see - we're all in this together."

When asked, he said he hoped for a collective response to what is certain to be a major economic downturn for Bermuda.

"I would like to see some of the landlords ease up on rent. I would like to see BELCO ease companies up with power and the same with BTC. I would like to see Government not taking in as much tax. Clearly cash is going to be at an all time crunch this winter and I think we've got to find ways of deferring taxes - rather than cancelling them. If everybody could ease people up to get through this thing - you want to keep people afloat." He said the banks should also play a role if people get laid off and can't meet their mortgage payments or businesses begin to default on their loans.

"How far we are going to be in this thing we don't know."

Air travel took a nose dive after four commercial airliners were hijacked September 11 and wielded as weapons against major US landmarks. The World Trade Center was obliterated and the Pentagon damaged. The US administration, while preparing for a war against terrorist organisations and states that support them, has taken steps to mitigate the effects on the economy, including a multi-billion dollar aid package for the airline industry.

For Bermuda and other tourist destinations, much depends on how soon Americans lose their fear of flying.

Government will be addressing the nation on the economic outlook this afternoon.