sparking calls for a Government investigation.

The eight hotels have now suffered losses in eight of the last nine years.

And it is feared owners may stop investing in their properties unless tourism picks up.

"Somehow, we must create an environment which makes possible a potential reward, in the form of a fair return on investment, for the risk taker,'' declared Bermuda Hotel Association president Stephen Barker.

Mr. Barker said hoteliers needed to work with the community and the Tourism Department to boost competitiveness.

"To be successful we need lower costs, more excitement and activities, and our visitors must be treated to a higher level of service throughout the Island.'' The eight hotels are the Princess, Southampton Princess, Elbow Beach, Sonesta Beach, Marriott's Castle Harbour Resort, Grotto Bay, Belmont and Harmony Hall.

Details of their finances, put together by chartered accountants Cooper & Lines, were released yesterday by the BHA. The combined unaudited statements for the year ended September 30, 1996, showed a net loss for the group of $5,623,000.

It meant over the last nine years cumulative losses totalled $47,500,000.

The trend was broken for the year ended September 30, 1994, as hotels raked in a profit of $5.8 million. At the time, hotel chiefs hailed the turnaround as a victory for cost-cutting measures, but their joy was short-lived.

Mr. Barker also revealed yesterday: Occupancy levels for this year stood at 58.8 percent; Room nights sold dropped from 580,602 in 1994 to 548,967 in 1995 and 541,994 this year; Gross revenues of $175 million were $9 million lower than the figure reached six years ago; Payroll costs have risen by 2.7 percent over 1995; and Over the last two years, capital invested in new furnishings, plant and equipment amounted to $43.6 million.

Said Mr. Barker: "Clearly, owners will not continue injecting additional funds into our economy unless current conditions improve dramatically.

"Hoteliers continue to be challenged with the need to improve efficiency while at the same time working with the community and the Department of Tourism to create a more competitive product.'' Mr. Barker said hotel occupancy levels were "unacceptably low'' and gross revenues for hotels were static.

"Costs, on the other hand, no matter how well monitored and controlled, over time will escalate.'' He added: "The key ratio of `income before fixed expenses' -- expressed as a percentage of sales -- is at the substandard level of 9.8 percent.

Gloomy hotel results "The accepted industry norm for this benchmark figure is 25 percent. Anything below 25 percent is considered unsatisfactory and is a distinct impediment to attracting new investment.'' Yesterday Bermuda Industrial Union president Derrick Burgess called for a Government investigation into the hotels' continuing losses.

"Tourism is our number one industry and it should concern everybody if we are losing this type of money,'' he said.

Mr. Burgess said employers had used reports of losses as a bargaining weapon during pay negotiations.

But he added: "The cost to the employers by employees is not that significant compared to other expenses.'' Tourism Minister David Dodwell said he was disappointed, but not surprised, by the latest figures.

"I had a prelude to where we were going on this a while ago, with higher operating costs contributing.'' Mr. Dodwell said the answer to the hotels' problems lay with rebuilding Bermuda's tourism industry.

"We are working to bring tourism around. It's a joint responsibility involving the hospitality industry, Government and the unions.'' Mr. Dodwell pointed to some Government initiatives to breathe new life into the industry, including the Visitor Industry Partnership (VIP).

"We are beginning to focus on turning things around.'' It is thought hoteliers could use the figures to lobby Finance Minister Grant Gibbons for tax relief in the February budget.

And it is likely financial relief -- among other matters -- will be high on the agenda of hotel owners when they hold their annual meeting with Government early in the New Year.

One area where hoteliers may seek relief is on the duty paid on fuel used by the Bermuda Electric Light Company for fuel.

Two years ago, Mr. Barker said the large hotels paid as much as $3 million for electricity a year.

Mr. Dodwell, however, was lukewarm about the idea of Government relief for hotels.

"The notion of just giving relief without a corresponding return is tough for Government.'' Last night Bermuda Hotel Association executive John Harvey steered clear of making a renewed appeal for help.

"We are not proud of our performance. The challenge has got to be to make improvements, but that cannot be achieved overnight.''