London-based company Hills Balfour was named yesterday as Tourism's new marketing and sales firm for the UK and Europe with the aim of establishing the Island as one of the top ten luxury resorts in the world.

The company will take over the $2.5 million three year contract from Communications in Business Ltd (CIB) on June 1.

Tourism Minister Rene Webb said Hills Balfour beat 23 other companies to land the contract.

The company's current clients include New York City, Atlantic City, Seychelles, Fiji, the Cook Islands and Kenya.

Managing director Amanda Hills Balfour, who lived in Bermuda from the age of seven to 14 while her father worked as an engineer, said the company's short-term goal is to fill beds from upmarket European visitors.

The long-term objective is to reposition Bermuda as an upmarket destination which will increase the number of visitors and yields, but without discounting.

"We want to be more creative to make sure Bermuda is in the top ten luxury destinations perceived from Europe," she said yesterday.

"We have been very successful in repositioning destinations with very high increases in yield and increasing numbers."

She said that in Kenya, her company's efforts had resulted in six more charter aircraft serving the country.

Ms Hills Balfour said British Airways was central to making Bermuda a success, but she would be speaking to other airlines to try to get more airlift from continental Europe.

She said as her company also works with New York and Atlantic City, she would be "knocking on doors" looking to generate city and Island holiday breaks.

Tourism Minister Rene Webb said yesterday: "The Hills Balfour team provides outstanding experience in the tourism industry, as well as a demonstrated expertise in sales and communications.

"The company's expertise extends beyond the classic boundaries of marketing, as they have also been instrumental in developing increased airlift in the destinations in which they have worked."

Ms Webb clarified that CIB, which has held the contract for 15 years, was told last year that the contract was going out to tender and the contract would end on March 31, 2003. It was extended to May 31 this year.

CIB were one of five companies shortlisted, but last month it was told the contract would not be renewed and the Tourism Department was trying to finalise a new deal with another company.

About two weeks ago, Hills Balfour were given a letter of offer and negotiations began, she said.

VSB reported last month that the contract was going to Mangum Management, which it said was a parent company of Hills-Balfour.

Asked to explain any relationship between the companies, Ms Hills Balfour said yesterday: "Keith Mangum has a representative company in Germany and does some of the accounts we do.

"I own my own company. No one else owns me and they never will."