was "crumbling''.

But Tourism Minister David Dodwell accepted the Island was facing serious challenges -- or even a crisis.

"What we have to do is give value for money,'' he declared.

Further fuel was heaped yesterday on the big tourism debate by a hotelier, who said the industry needed looking at -- urgently.

"Despite the fact that millions have been poured back into renovations and upgrades in our hotels we are constantly reminded by the public `it is not enough','' said Pink Beach Club managing director W.A. (Toppy) Cowen.

The "crumbling'' accusation was levelled on Wednesday by Bank of Bermuda chairman Eldon Trimingham in his annual address to shareholders.

He said the time had come for the tourism industry to be placed under a "professional and objective'' microscope.

And he warned of a huge gulf opening up between members of a flourishing financial industry and those who used to take part in a healthy tourist trade.

Mr. Trimingham said Government had failed to focus on rebuilding the tourism industry.

"It is obvious that the problem in the industry is much larger than one of successful promotion.

"It is Island-wide, affecting two-thirds of Bermudians and therefore touches upon and encompasses all areas of Government, the community and the economy.'' He added: "It seems clear that a proper professional and objective analysis of Bermuda, and its shortcomings as a destination, and the causes of those shortcomings together with recommendations for solutions and a plan for bringing them about is urgently required.'' Yesterday, Mr. Cowen agreed the tourism industry was facing a potential crisis.

"Condemnation of the services we provide has prompted Mr. Dodwell to encourage hotels to unify in customising performance standards. Clearly this is a commitment to provide our guests with first class service.'' Mr. Cowen congratulated the many thousands of hotel employees for their "patience, friendship and dedication to doing their best''.

Last night, Mr. Dodwell said he did not take issue with the general thrust of Mr. Trimingham's remarks.

"Broadly speaking he is on the right track and I understand where he is coming from.

"I wouldn't have phrased the problems that way, however. Crumbling is a strong, negative word. It says `we ain't going to get out of it'.

"I would say there are serious challenges or a crisis. But I'm an optimist.

"I'm optimistic that if we can dig deep in this community and pull together our collective will then we can succeed.'' Mr. Dodwell pointed out air arrivals were up three percent this year.

"We need to do more, but at least that's not a downward trend. Unfortunately, hotel occupancies are down. This means visitors are staying here for shorter periods.

"But I believe we can turn things around. I'm optimist that 58,000 people help us do this.'' Mr. Dodwell agreed with Mr. Trimingham that promotion alone was not the answer.

"It's not necessarily a marketing issue, although that's not to say we can't market better.

"I see this as a product issue. We have to drive product change, to reengineer tourism in Bermuda. And that's where I support Mr. Trimingham's point.'' Mr. Dodwell said he supported "100 percent'' Mr. Trimingham's call for a professional and objective analysis of the tourism industry.

"I would like to say the Tourism Ministry and the private sector are doing just that in many ways.'' One example, said Mr. Dodwell, was the Visitor Industry Partnership (VIP) programme -- an initiative funded by the hotel industry and the Tourism Ministry.

Through the programme Government hoped to breathe new life into the tourism industry.

Another example, Mr. Dodwell continued, was the recently-announced plan by the Freeman Group.

Dodwell hopes to jazz up tourism "This is a cooperative alliance between Tourism and the hotel industry to put in place customised performance standards that can be measured by our guests.

"What we have got to do is give value for money. Our studies show us that value for money received by visitors has plummeted over the last two years.'' Mr. Dodwell said his Ministry had challenged tourism experts to come up with new ideas -- such as the upcoming jazz festival.

"The festival is an excellent example of driving the product change, and providing entertainment to bring visitors here.''