were "seedy'' and lacking in modern amenities.

And Tourism Minister the Hon. C.V. (Jim) Woolridge vowed that visitors to the Island could count on high standards at guest houses and hotels "because each property is inspected and licensed annually.'' Princess Hotels managing director Mr. Stephen Barker said yesterday that this week's comments by top EXEL Ltd. executive Mr. Gavin Arton were "unfair criticism'' and gave "the impression all local hotels were sub-standard.'' "That is certainly not the case,'' said Mr. Barker, who explained that the company's two hotels in Southampton and Pembroke were constantly being upgraded.

He said plans for this winter included installing mini bars en suite and voice mail facilities for business executives staying at the Hamilton Princess.

When contacted yesterday, Mr. Arton conceded he had made "a broad generic comment on the state of Bermuda's hotels in general and the Princess was still the flagship.'' However, he added: "That does not mean it's perfect.'' Mr. Arton, who had been speaking at an insurance industry luncheon, said it was vital that Bermuda offer first-class infrastructure in its position as a leading exempted company base and "premier holiday destination.'' But the local hotels that he, colleagues and clients had stayed in did not reflect this, EXEL's senior vice president said.

"Some of the hotels need to be refurbished,'' he said. "And many of the places do not even have television -- or cable -- in the rooms. When a businessman is shaving in the morning he wants to tune into CNN.'' Another deficiency, Mr. Arton felt, was a lack of fax machines, which he said were missing mainly from the smaller hotels and guest houses that business people often preferred to stay at but ended up not coming back to.

Mr. Barker said he had been in touch with Mr. Arton, who recently returned to work on the Island, and he had "assured me he did not include either of the Princess Hotels in his criticism.'' Mr. Barker said most business visitors stayed at the Princess. "And they are extremely satisfied with the current product and are supportive of the changes planned this winter,'' he said, adding that the hotel had a first-class Concierge Club for business people.

"We are constantly soliciting input from visitors and making renovations or adding amenities to reflect changing needs. It's not fair criticism that's being bandied about.'' Mr. Woolridge, meanwhile, offered assurances yesterday that "every effort was made to ensure that guest properties and hotels maintain high standards.'' He said that licensing criteria was adjusted according to "changing industry standards and guest expectations'' and that the Tourism Department has been "guiding'' and "monitoring'' all guest properties for the past six years.

"On a scale from 1 to 5, all of Bermuda's properties are required to achieve level 4 in all areas of their establishment to qualify for relicensing,'' he said. "This year, 62 of the 78 licensed properties maintained level 4 in their properties and 31 achieved level 5 in some areas.'' While the Minister admitted that Mr. Arton's complaint about a lack of business facilities in hotels had "some validity,'' he pointed that it was not "economically viable for all of them to provide state-of-the-art technology in all guest rooms.

"The primary focus has been on the vacationing visitor,'' he added.