Independence Day celebrations -- despite industrial strife.

Today's festivity seems set to provide a welcome ray of sunshine to hard-pressed hoteliers. One hotel even reported a 20 percent bookings rise on last year.

But high hopes were mixed with anxiety over the troubled industrial landscape.

Last-minute cancellations could follow any drastic escalation of the dispute, hoteliers fear.

"Heaven knows what would happen. We are all full of trepidation,'' Miss Lesley Hayward, general manager of Ariel Sands said on Thursday, adding the hotel was full.

She said worried Americans were calling for an update on the uncertain labour scene. The message to them was: You should be all right, but there are no guarantees.

Miss Hayward said Ariel Sands was fully-staffed.

Mr. W. A. (Toppy) Cowen, manager at Pink Beach Cottage Colony, told The Royal Gazette : "We've been sold out for three or four weeks.'' He warned, however, the hotel industry could not survive on one "glorious'' weekend a year.

Staff at Marriott's Castle Harbour Resort -- hit by walkouts from the dispute -- were preparing to be rushed off their feet on Saturday.

Said resident manager Mr. Walter Kennedy: "It's going to be very busy. We are probably about 15 or 20 percent busier than last year.

"There are only a few rooms to sell the rest of the week.'' Mr. George Robinson, general manager at Grotto Bay, where the Bermuda Industrial Union is not recognised, described himself as "pretty pleased'' with bookings.

"There are a few rooms left, but we are very booked up. The dispute has not affected us at all. There has been a 100 percent turn up.'' Sonesta Beach experienced a bookings rush similar to last year.

But managing director Mr. David Boyd said he believed most visitors knew about the dispute.

Mr. Boyd said news about industrial action could not be contained: "It is no secret. A lot of people have already been inconvenienced.'' Mr. John Harvey, executive vice president of the Bermuda Hotels Association and the Hotel Employers of Bermuda, said the traditional July 4 exodus from America was on the cards. But the predicted occupancy rate for July was 62 percent, down on last year.