before Hurricane Felix began to wreak havoc across the Island.

Businesses, shops, Government offices and banks closed at midday allowing the workforce home to protect their houses before the storms reached hurricane force.

A handful of people were evacuated from shore-side homes and emergency services put on standby to deal with flooding alerts. As early as yesterday afternoon some areas were already beginning to lose power. Thirteen large areas were without power yesterday.

At least one hotel, the Pink Beach Club and Cottage Colony suffered major damage even before the hurricane hit and other hotels were ushering their remaining guests into safe areas.

The airport also closed down with all airlines cancelling yesterday's flights as well as today's as high winds and damage made it impossible for planes to land.

Some roads were closed as debris and waves washed ashore and some boats were coming off their moorings, drifting helplessly in the teeth of the gale.

Sightseers were causing Police problems as they queued up beside popular spots along the South Shore.

Winds reaching 65 knots hit Bermuda as early as 6 p.m. yesterday but forecasters predicted Felix would reach its closest point to the Island -- about 40 nautical miles -at 11 p.m. last night bringing winds of 75 knots, gusting up to 90 knots.

Gales of about 65 knots were then expected to continue until the early hours of this morning.

The Bermuda Weather Service said winds should then drop throughout today and by tonight be down to between 25 and 35 knots. The winds should drop tomorrow to between 20 and 30 knots and by Wednesday evening be no more than about 15 knots as the hurricane passes.

A spokesman for the Bermuda Weather Service said: "We expect that winds will reach between 75 and 90 knots and will remain hurricane force but declining slowly during the morning and day.'' The Emergency Measures Organisation met twice yesterday as the situation on the Island continued to worsen with winds strengthening throughout the day. A hurricane warning was officially put out on Sunday night.

EMO officials decided Government and businesses would close at noon and buses would cease running at 3 p.m.. Swing Bridge and Longbird Bridge opened for the last time at noon.

A special control centre was set up at Police Headquarters to co-ordinate emergency crews.

Chairman of the EMO and Deputy Governor, Mr. Peter Willis, added: "We need to get across to people the difference between Hurricane Felix and Hurricane Emily. This one is going slowly and there will be hurricane winds for a lengthy period.'' In 1897, Emily, although shortlived, caused damage estimated at about $32 million.

Last night a Police spokesman said people watching the storms were causing problems by blocking roads and placing themselves in danger because of the high surge, up to 15 feet high in some areas and made worse by the high tide last night.

Debris thrown onto the roads was also causing problems and it looked as if the road around John Smith's Bay would have to be closed.

On the Causeway, motorcyclists were being blown off their bikes, ignoring advice to stay off the roads.

The South Shore was yesterday bearing the brunt of the storms and Mr. W.A.

(Toppy) Cowen, owner of the Pink Beach Club, said 50 feet waves were cascading into the air.

He estimated storm damage to be in the region of $150,000, not counting the "astronomical'' revenue losses from departed guests.

"There were these waves that were hitting the shore that got to 50 feet into the air,'' said Mr. Cowen. "We moved most of the guests to the back of the cottage colony.'' Mr. Cowen said some rooms had a foot of water in them and many rooms were empty as guests either fled the Island early or were unable to land because of the hurricane.

"It will be a very crushing blow to us. We were looking at one of the best weeks of the summer.'' The hotel would have been 98 percent full but was down to 59 rooms from 89.

Elsewhere, other hotels on the Island saw a marked decline in the number of guests as people left before their holiday was complete.

Mr. Stephen Barker, President of the Hotel Association and Regional Vice-President of Princess Hotels, said: "The tourists who were to be here until Monday or today decided to leave early because they didn't wish to risk the danger of going through a hurricane. The numbers leaving has definitely been noticeable.'' It is estimated that about 4,000 people would have arrived by air yesterday and today, costing the Island's economy dearly. Two cruise ships have cancelled their journeys and three will arrive late, adding further cost to the hurricane.

Mr. Jack Gordon, general manager of airport operations, said all planes, including private jets, had left the airfield leaving no aircraft in Bermuda.

"It is quite a rare decision to actually close an airport. We have had some damage to navigational lights and others could be affected by storm surges.'' Also cancelled because of the weather were Government summer day camps and the PLP rally due to be held last night.