Government ministers heard "no good news'' about the tourism industry yesterday when they met with top hoteliers at a "summit''.

Premier the Hon. Sir John Swan reported that the industry slowdown was still hammering hotels.

"The hotel owners had no good news for us,'' he said in a formal statement.

"Revenue is down very considerably and bookings are showing no signs of an improvement.'' Sir John said Bermuda was caught in a dilemma of falling revenues and rising visitor concerns about the value of its tourism product.

Cutting business costs was deemed the only viable way to improve the hotel's situation. And the Premier hinted that Government was receptive to hotelier arguments for tax breaks.

This is the first time Government has met with hotel owners since March.

Sir John said he had encouraged hoteliers to sit down with their workers' union representatives "to discuss their problems with the same kind of candor they brought to the table this morning.'' He also moved to quell ongoing suspicions that the meeting -- the second of its kind this year -- was part of a Government-hotel industry "plot'' to destroy the union.

"Nothing could be farther from the truth,'' he said. "We are trying to find ways to solve problems which, unless addressed, could jeopardise many, many jobs in the tourism industry.

"We in Government believe the union and the employees it represents have a very big part to play in solving these problems, so that the industry survives the crisis.

"The Government is anxious to help the hotels as much as we can. Their difficulties are Bermuda's difficulties, and all of us are obviously completely committed to ensure that Bermuda can continue to depend on the tourist industry to provide the greater part of Bermuda's income and employment.''