Under-pressure Island hotels received little comfort with taxation changes announced yesterday.

A decrease in land tax was high on their list, but the reduction by 0.5 percent in the commercial rate fell short of the 1.5 or one percent cut called for by hotels -- and still meant a net increase overall, taking into account last year's rises.

The decrease from six to 5.5 percent will mean $196,000 will be shaved off the hotels' total tax bill.

In addition, payroll tax credits and a preferential tax rate of 9.75 percent and 7.75 percent in the off-season for hotels were revealed, which Mr. Cox said would amount to cuts of $420,000 for accommodations.

But the gains are likely to be a disappointment for hotels, who were looking for duty relief on alcohol, an off-season reduction in occupancy tax and a sizeable reduction in their land tax bills.

And one hotelier levelled that the new rates meant an increase for properties, and that the land tax reduction was still a hike over the position before the PLP took power.

Cambridge Beaches president Mike Winfield said the preferential tax rates of 9.75 and 7.75 percent for hotels were actually up three quarters of a percent each.

"We were heartened by the Minister of Tourism's comments that he and the Minister of Finance were looking at hotels with sympathy,'' he said.

"Having seen this Budget and realised that in terms of comparison to when the PLP took over, we have received a dramatic net increase in land tax and employment tax.

"I don't see much evidence of sympathy.'' Tourism itself sees an increase in its budget for the upcoming financial year, with $2.43 million in net new money, and an estimated budget up from $35.7 million last year to $36.9 million in the new fiscal year.

Promotion and publicity overseas again see a sizeable chunk of the cash, with funds being used to support overseas campaigns. Smaller amounts are detailed in order to deal with the on-Island experience.

In addition, cruise ship passengers are to receive a $150,000 welcome -- similar to that offered to air arrivals.

The biggest portion, $2 million, goes to bolster the two new air services to the Island. The money will be used for "media support'' for summer services from St. Louis and an extra Delta Air Lines flight out of Atlanta.

There was no mention in the statement of money set aside for the North American advertising campaign, although $275,000 is apportioned for a co-operative advertising effort in the Midwest -- in addition to the $2 million already earmarked for publicity in the region for the new air services.

Tourism Minister David Allen -- who was off the Island yesterday -- led revitalisation tours to the US and Canada last year, and $300,000 has been allocated in the 2000/2001 budget for additional promotion events in North America.

The Freeman Group, which has been providing assistance in upgrading service standards, will continue its work with a further $411,000 and travel agents will get incentives to the tune of $423,000 to help them send more visitors to the Island.

In his speech, Mr. Cox said the Government had been working hard to turn tourism around and had spent extra money to create a "buzz'' in the marketplace.

He said: "The Minister of Tourism has been tireless in his efforts to attract new investment in Bermuda and in new transport routes.

"The commitment of Government and hotel owners to the advancement of tourism has been reinforced through intensive working sessions at the highest level.''