Bermuda must diversify its tourism accommodations if it wants to avoid slipping further behind the rest of the world, a specially commissioned report has warned.

The study, which has been released for the first time by the Department of Tourism, recommended wide-ranging changes for the hospitality industry -- some of which are already underway.

Undertaken by Coopers and Lybrand Hospitality Consulting, the 25-page document highlights some of the problems faced by the industry on the Island and some of the possible solutions.

It says the Island needs a luxury hotel with a brand name to raise its global profile and a more varied set of accommodations to encourage growth in tourists.

In addition, it states a need to upgrade existing properties to enable them to compete with newer, more modern facilities overseas.

More diverse accommodation could include condomiums, houses, villas and timeshare.

The report states: "Over 96 percent of Bermuda's visitor accommodations are concentrated in hotel properties, while other upscale destinations have a more balanced set of accommodations.

"Those jurisdictions...have experienced higher growth in land-based visitation, thereby favourably impacting on their economies.'' The study, which was prepared for the former UBP Government in March 1998, is being looked at by the staff at the Department of Tourism.

Director of tourism Richard Calderon said: "It has got good information that will help us make decisions on developments but also make sure they are are in the best interests of Bermuda.'' Timeshare accommodations of differing types are flagged as vital for the Island, providing tourists with a number of options instead of the traditional hotel room.

It said: "The development of these types of accommodations..will likely bring multiple benefits to the Island's economy.'' Among those highlighted were; more visitors per unit than a typical resort, a higher return rate and longer length of stay and increased spending from timeshare visitors.

In addition it stated that a strategy must be developed to attract resort developers, providing them with the correct climate including incentives and processes. Much of those recommendations are already starting to emerge with the passing by the Senate of the Hotels Concessions Act.

The report also said that "Bermuda is regarded by the development community as a difficult environment to conduct business'', adding that it had, at that time, an unfavourable operating climate.