A businessman who failed to make the short-list to develop Club Med has claimed Government is unable to close a deal and international hotel investors now think Bermuda is a difficult place to do business.

Richard Bachman, the president of Global Properties, spoke out after his company did not make the short-list of two for the empty site in St. George's.

He said despite having finance of $35 million in place and pushing for around two years, his company was not even given the chance to present its case to the Cabinet sub-committee dealing with Club Med.

But Tourism Minister Renee Webb said last night Government was pushing ahead with a short-list of the two best proposals and it did not have to explain to anyone why they were not successful. She has said a decision on which company will get to develop Club Med will not be made until after the General Election.

Mr. Bachman, who is based in Lighthouse Point, Florida, said he hopes the PLP loses next week's general election so a new government can get things moving on the site.

Bermudian Patrick Bean, who has teamed up with developers SteppingRock of Dallas, Texas, and the Quorum Group, which are based in Toronto, New York and Bermuda, have been asked by the sub-committee to make presentations to the committee and give more details of their plans.

Mr. Bachman, whose company has worked with Marriott and has developed resorts around the Caribbean, told The Royal Gazette: "I wondered why we were never given the chance to present our plans to the Cabinet sub-committee.

"We submitted plan after plan with this government and they wouldn't meet with us. Ian Gordon, my architect in Bermuda, has been constantly in their face and he's been banging his head against a brick wall.

"I am not happy about it as I believe we should at least have been given an opportunity to meet with the committee to put forward our proposals.

"We had the funding together and we have worked with Marriott properties all over the Caribbean, and worked in Costa Rica, Florida and Puerto Rico. We are now working in the Bahamas."

When asked how Bermuda is seen by investors, he said: "With this reputation, very badly. There is no action taken on anything. We've had proposals for a couple of projects and nothing has happened. It is a very difficult government to work with."

When asked if the view was commonly held in the hotel investment community, he said: "Absolutely. We've had a couple of different investment groups and two of them backed away because of their (Government's) inability to do anything.

"We're now working with a third group and they are pretty frustrated as well. It is very hard to keep an investment group together.

"We're hoping to see what happens in the election because it may change the flavour a bit. We are still interested in the project."

When asked if that meant he would like a new government, he said: "Yes, because we may have some activity and something positive will happen."

Ms Webb said last night: "There was a recommendation to talk to two people and the Cabinet approved that and that's what we've started to do.

"We don't have to say why anyone else was chosen. We are under no obligation to tell anyone." Director of Tourism Judith Hall-Bean said yesterday: "Mr. Bachman's proposal to redevelop the hotel into a traditional hotel with a residential component, health spa and conference facility was one of seven initial proposals received.

"Following receipt of additional details requested in December 2002, to assist in confirming the strategic intent of each developer, and to determine which proposal best meets Government's criteria for the site, three proposals were short-listed for further review by a selection committee appointed by the Minister of Tourism, Telecommunications and E-Commerce.

"Following this further review, a decision was made by Government to meet the objectives determined for the site, a decision was made not to support (his) proposal.

"Mr. Bachman was thanked for his interest in the property, and advised that his proposal would be kept on file for future reference should the other proposals still under consideration not result in the redevelopment of the site."