BERMUDA'S flagship resort hotel has been forced to consider closing its doors for winter as the worsening US downturn paints a bleak picture for tourism in 2009.

A decline in arrivals, a drop in visitor spending and an economic crisis in our US target market have prompted the island's large resorts to question whether they can survive the off-season.

Management at Fairmont Southampton held meetings recently to decide whether a "full or partial closure" would be necessary to stave off financial ruin during Bermuda's quiet winter months.

General manager Norman Mastalir told the Mid-Ocean News that while the Fairmont Southampton is open for the time being, he and representatives from Bermuda's other resort hotels will meet with Government next month to brainstorm ways to avoid closing for the winter off-season.

"There have been a lot of meetings about how we're going to survive, but no decision has been made," he said. "We did discuss full or partial closure as one of many options. We're having to consider how to operate the hotel; it's an urgent situation."

Mr. Mastalir said that while he and the management of competitor resorts like Elbow Beach speak regularly to share advice and ideas, the Fairmont Southampton's sister hotel, the Fairmont Hamilton Princess, has not been party to these conversations.

Management at the Hamilton Princess have not had to consider drastic measures such as closing for winter thanks to a regular influx of business visitors, who choose the Pitts Bay Road hotel over its Southampton counterpart for its location, seconds from Bermuda's financial centre.

"It's an entirely different hotel," Mr. Mastalir said of the Hamilton Princess.

"It has a core of business-related guests. That sector has not been affected anywhere near as dramatically. There are always people here for conferences and meetings, and the Hamilton Princess benefits from that. People still need to be here for international business."

In mid-December, Mr. Mastalir and his fellow general managers will meet with the Department of Tourism in an effort to develop new ideas for riding out the months ahead.

"We're going to brainstorm opportunities and work together with Government to see what we can do to lessen the impact," he said.

"We know it's going to be a very difficult winter. We're trying to make the best out of the situation."

Last month, new Director of Tourism Billy Griffith told The Royal Gazette that the Department had specific plans to attract tourists in the winter months, including 'Compliments of Bermuda' vouchers for visitors valued at up to $400 in celebration of the island's 400th anniversary.

He also noted that Bermuda would benefit from investment in small boutique hotels rather than large resort complexes.

"A lot of people are focusing on the big hotel developments," he told the Gazette.

"But I think Bermudians need to invest in hospitality, we need smaller establishments as well. We need more bed and breakfasts and small hotels. I think Bermudians need to be investing in Bermuda's hospitality industry. Bermuda has been voted the best island in the Caribbean by Conde Nast for the last 14 years.

"That is not a concocted list, that is based on the votes of people who come here.

"And I think if you look at the type of people who read Conde Nast, they don't stay in the larger hotels normally. They stay in small properties and boutique hotels ¿ that is what we need more of."