projections for the summer.

Hotel owners have been encouraged by figures for February which are up on last year, similar to 1991.

But occupancies were well down last year and the hotels are refusing to become too enthusiastic.

President of the Bermuda Hotel Association, Mr. David Dodwell reported that figures for February were 34.5 percent compared with 26.3 percent. In 1991 the figure was 33.4 percent.

Mr. Dodwell said that recovery looks big because of the slump last year, but it was only really on a par with 1991.

Projections for the coming three months are similar to the 1991 occupancy figures rising from 41.9 percent in March to just below 50 percent for May.

Mr. Dodwell said: "It is a little too early to tell whether they're is a recovery. However the momentum appears to be continuing.

"We will have to watch this on a month by month basis and hopefully it will improve.

"It is not a situation like the 70s and 80s where there was some predictability.''