Tourism Minister David Allen will today unveil to an influential body of European travel wholesalers the first ever Island-wide promotion of Bermuda, offering widespread discounts.

Hotels are offering rooms at 20 percent cheaper than their normal winter rates, but details of a new package offering discounts on flights, restaurants, shopping, activities, transportation and other "value-added" items will be revealed today.

The Island is desperate to increase business from Europe in the wake of the September 11 terrorist attacks. Europeans are still travelling in greater numbers than Americans, they stay longer, and they spend more.

It is only the second time the European wholesalers - who sell packaged holidays to thousands of individual travel agents throughout the continent - have come to Bermuda to see the Island first hand.

The Department of Tourism is beefing up its European push for business by bringing forward marketing money that would have been spent next year to push the Island now. The total cost is around $380,000.

In a second crucial push, Mr. Allen will be in New York on Wednesday with Island hoteliers to meet around 50 US wholesalers who sell package deals to Bermuda to individual travel agents.

He told The Royal Gazette yesterday that sometime later this month Bermuda will launch a marketing campaign in North America, again with heavy Island-wide discounts and value-added promotions, which had been put on hold in the wake of the suicide attacks in New York and Washington.

When asked if he thought the visit of the 22 wholesalers from Britain, Italy, Germany, Switzerland and Ireland - who sell up-market packages to travel agents - will boost business in the coming months, Mr. Allen said: "Absolutely.

Bermuda might be seen as a bit straight-laced and conservative, but right now that's a good thing to have."

However, Ian Parker, the man contracted by Tourism to market the Island in Bermuda, was more cautious, saying he would be happy if bookings for next year are the same as this year.

Mr. Parker emphasised that this would be a good result, given that most predictions are for the world-wide tourism market to fall by 15-20 percent in the coming year.

Mr. Allen, who was in England for the recent British Labour Party conference, held a marketing meeting in London on Wednesday with British Airways officials, Director of Civil Aviation Ian McIntyre , and the Island's marketing and sales staff representatives in Germany and Italy.

Mr. Allen said BA was impressed with the Island-wide discount package which he will unveil today.

When asked if BA would consider providing additional flights from London if there is an increase in business as a result of the promotion, he said: "They said they were actively looking at it."

Tourist travel from Europe to Bermuda has increased by 40 percent in the past ten years, standing at 35,000 this year. They now account for 17 percent of bed nights, an increase of 10 percent.

In an important breakthrough, for the first time last year more than 70 percent of first time European visitors were aged under 40, increasing the possibility of repeat business.

The new marketing plan being pushed will involve a direct mailshot to 100,000 homes in Europe, advertising, targeting specialist travel agents, and pushing for more corporate and group bookings.

Thirty percent of European visitors to Bermuda go via North America, so individual travel agents selling holidays to the US will be encouraged to sell two centre vacations - for example New York and Bermuda.

Mr. Parker told The Royal Gazette yesterday: "I would be happy if we can maintain what we did this year because the general feeling is that market is going down 15-20 percent.

"The short-term impression is that we are not getting cancellations (from Europe to Bermuda) after September 11. The UK is still travelling and we've had similar from the Germans."