Ariel Sands Hotel bosses are considering a two-month winter shut down after Tuesday's terrorism decimated bookings while Newstead bosses fear plummeting business could finish them altogether.

And Elbow Beach Hotel have slashed hours for all staff, including management, after bookings fell from around 90 percent to 40 percent as people rushed to cancel.

Last night Newstead general manager Clarence Hofheins said a winter layoff might have to be considered.

He said: "Anything is an option for us right now. We are very concerned about the future of this hotel and tourism. In the worst case scenario we could close down totally if we don't get the people on the Island. We are starting to make drastic cut backs. We had two restaurants open, now basically we have one."

He said management now had to go four days without pay per month. Everyone's feeling the pinch, including myself."

Ariel Sands general manager John O'Brien said the hotel will be laying off more staff than usual. "Typically we do this in September and October but we will probably have to have further cuts because of what happened.

"We are looking at a crisis plan for the next six months, there may be a number of layoffs. Maybe we will close for two months, we have to look at a number of scenarios."

"Right now we are getting killed, all the hotels are taking a hit. Group bookings are cancel, cancel, cancel even into October.

"People are afraid to fly. Personally I think there will be a long recovery period needed, it will take a long time before people are comfortable about coming back."

He said high fare prices had already hit business.

He said: "It's a double whammy."

Elbow Beach spokeswoman Kendaree Burgess-Fairn said a shutdown of the hotel had been ruled out at this point but the slow season had hit early.

She said: "We expect a drastic reduction in the number of guests so we are taking a proactive approach - we have reduced the number of hours for management and staff.

"We have had more than 90 groups cancel up until the end of the year. We had occupancy of around 90 percent - now it's gone to 40 percent. We are all going to feel this, it's not just Elbow Beach or on this Island. It will be felt globally."

However a number of hotels were taking a wait and see approach.

Harmony Club President Billy Griffith said: "Right now today, there are no plans to shut temporarily but if America goes to war and the situation gets worse we have to consider all the options."

He said the payroll had already been cut by 30 percent for several weeks in response to falling arrivals but it was too early to assess how terrorism would effect business.

"This only happen four days ago but I think there will be more problems."

Sonesta manager Stephan Amesoeder ruled out any possible winter shut down and said the hotel assessed layoffs on a week to week basis. I don't know if it will return to normal. Numbers will be down but we are still hoping to get some business."

Pink Beaches manager Michael Williams said his hotel would go ahead with its usual December 15 to March 15 shut down but there would be no layoffs in the meantime.