less than they can to come to Bermuda.

And the news -- highlighted in a recent US newspaper article -- has led to calls for Government to protect Bermuda's tourism industry.

In a letter to the Editor of The Royal Gazette , hotelier Jon Feldman said: "Government must act now on air fares to protect what is left of our Tourism industry. I sincerely hope this guide will focus, once and for all, on this pressing problem.'' The article -- entitled A Guide to North American Airfare bargains -- appeared in the June 16 edition of The Philadelphia Inquirer.

It showed that passengers flying from Philadelphia face a $538 airfare to get to Bermuda on either US Airways, American Airlines or Delta.

However they could fly to San Juan, Puerto Rico, for $328 on American and US Airways; Montego Bay, Jamaica, for $330 on Air Jamaica and American; Cancun, Mexico, for $440 on Continental and American; and Mexico City for $468 on United Airlines, American, Delta and Continental.

The article does note that airlines make thousands of daily revisions to their fares so they can change between the time the paper researched them and the day they were published.

Similar price differences exist for passengers travelling from other US cities also, The Royal Gazette understands.

And Tourism director Gary Phillips yesterday stressed the problem was of particular concern to the Tourism Department as articles such as these contributed to the notion in the US that Bermuda was an expensive destination.

It was one of the reasons why the Department deployed so much tactical advertising in papers and magazines in their target areas.

High prices were also one of the reasons why Government had ordered an airline review, noted Mr. Phillips.

Tourism Minister David Dodwell announced the review in May and revealed that it was being conducted by a committee headed by Tourism marketing committee member Terry West who also headed the cruise policy review team.

Mr. Dodwell pointed out at that time that Bermuda did not hold the same influence over airlines that it did over cruise ships.

He said the committee were focusing on Bermuda's gateway cities, charters, marketing and pricing to see what was happening in the industry and how it impacted the Island.

Once changes that need to be made are determined, he continued, they would be implemented for next season.

Mr. Phillips said wholesalers operating trips to Bermuda were able to put together packages including airfare, hotels and transport that were very attractive.

"You can not look at just airfares in isolation,'' he said. "A great percentage of visitors come through wholesalers and would not be affected by the standard airfare.'' And most of the large hotels dealt with these wholesalers, continued Mr.

Phillips, so it was mainly small hotels and cottage colonies which were affected by the high fares.

Mr. Phillips said TNT Wholesalers offered a package out of Boston that included a three night hotel stay for under $500.

And if would-be visitors looked in the travel section of large newspapers such as The New York Times, they would find many similar packages.

The director said air fares hinged upon the density of travel along particular routes and competition.

Bermuda saw prices drop for certain routes when Kiwi Airlines entered the market, noted Mr. Phillips, and this was due to creating competition.

But where airlines were the sole carriers for certain routes, such as British Airways and its London route, then there was less incentive to lower rates in favour of the consumer.

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