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Hotels to discuss industry's weak financial condition

chiefs and Government to reduce the industry's operating costs. The Thursday briefing, which has been called by Bermuda Hotel Association, follows mid-February's meeting between hoteliers and the Premier which concluded the industry faced economic difficulties. That meeting saw the formation of a committee of hoteliers and Government ministers who are to "restore the viability of local hotels.'' BHA executive Mr. John Harvey said the meeting had been called in part to dispel the impression the committee's work was only interested in the operations of large hotels. A memorandum circulated to BHA members and licensed hotel operators said there is a perception the February talks with the Premier "concentrated solely on the financial position of large hotels, which is NOT the case.'' BHA directors decided to invite the entire industry to Thursday's meeting so "we can share with you our present and ongoing efforts to obtain financial relief from the Government''. "At this meeting, we will share with you the BHA's current and future objectives in addressing the hotel industry's needs. ... More importantly, we welcome any ideas and suggestions you deem essential for the continued successful operation of your hotel in Bermuda.'' Hoteliers are seeking financial relief in all areas. Already there have been meetings with representatives from Telco and Belco in a search for some kind of relief from their relatively high rates. Other areas under investigation include customs duties relief and oil fuel duty relief. In their February meeting, top hoteliers told the Premier and other senior ministers that fuel costs claimed 19 cents of every dollar spent on guests compared to an international norm of about four cents of every dollar. Labour costs, they said, amounted to roughly 40 percent of costs compared to 16 percent in the Caribbean.*l