Plane loads of visitors from Germany and Italy are expected to begin touching down in Bermuda as early as this summer as the Island looks to Europe to build its hotel-stay tourism sector.

And construction of a second pier at Dockyard to handle another Panamax or post-Panamax size cruise ship is to get underway with completion by spring 2009 the goal. A budget of $20 million has been put aside to pay for the pier.

These were the stand-out tourism announcements in this year?s budget. And the move to woo potential visitors from continental Europe makes sense to Bermuda Hotel Association chief officer John Harvey, citing the fact that Europeans are generally affluent, well-travelled and have longer vacation allocations than their North American counterparts.

A European marketing and sales committee was set up in recent months with involvement of the BHA and Government, said Mr. Harvey.

Discussions have started with the plan of bring charter flights from Italy and Germany direct to Bermuda. A six-week charter operation from Italy could be a reality this July and August, according to Premier Ewart Brown.

Mr. Harvey said: ?It will help grow a new market and not be so dependent on North America. In Germany and Italy there has been some missionary work done. We have to give it a real push and give Bermuda a presence.

?The Italians love the sun and they also have long vacations, five or six weeks each year and they take those vacations.?

A trial charter flight from Germany was operated during 2006. Further marketing to grow the interest in Bermuda amongst Germans is now underway with a view to re-starting a direct charter service in summer 2008.

Dr. Brown, who is also Tourism Minister, said he hoped it would morph into a full scheduled air service in the future.

Italian visitors are likely to be flying to Bermuda this year. Plans are underway to lay on direct charter flights.

?Bermuda has an historically been perceived as an upmarket, expensive destination in Italy. The gradual devaluation of the US dollar however has made the destination more appealing to a wider range of potential travellers,? said Dr. Brown.

?Last year we entered into an agreement with Destination Tourism marketing consultants in Italy. Destination?s primary role is to promote and increase visibility of Bermuda within the Italian territory as a leisure and business tourist destination and develop initiatives aimed at creating a desire to visit Bermuda.

?Talks are underway with hotels and tour operators that could result in a charter service from Italy to Bermuda in the summer of 2007. The direct service from Italy to Bermuda would operate for a six week period between July and August of this year.?

Regarding Germany, Dr. Brown said: ?It is the largest, most affluent economy in Europe. Its citizens lead all nations in the world in terms of international leisure travel.

?The potential for a well developed German programme is huge. Surveys of German travellers to beach vacation destinations indicate that, while climate and quality of beaches and hotels are very important, price is a less influential factor. Clearly, Bermuda should be well placed to attract a fair share from Germany.?

It is intended to schedule an air charter service programme in partnership with a tour operator and hotels.

?Our ultimate goal is an established German tourism market served by non-stop regular scheduled service from a major airline. It is therefore essential that the Ministry seek a tie-in with a lead German operator.

?While there will be no charter out of Germany this year, the department?s efforts in summer 2007 will focus on continuing to build demand in that market place. The department in partnership with the BHA is in final stages of negotiating an agreement with East Tourism Group, a German company that has as one of its business units a tour operator and another marketing consulting company. In 2008 East will act as a charter operator to reintroduce charter service to Bermuda from Germany.?

What to do about the increasing use of larger ships in the cruise industry appears to have been answered by Government?s decision to allocate $20m for a second cruise ship pier at Dockyard. That will allow two Panamax or post-Panamax size cruise ships to dock at the same time in the West End.

But the clock is ticking to get the project completed in time for spring 2009 as cruise operators are already lining up ships that will visit the double pier, therefore leaving no room for slippage in the completing the construction.

Dr. Brown spoke briefly on the initiative at a post-Budget media call. He said: ?It is designed to be completed by the spring of 2009. We are on a tight schedule but I believe we will meet that deadline.?

Tour boat operators have also been given some relief. Following consultation with the Bermuda Tour Boat Owners Association certain tariff items have been amended, including duty-free fuel, reduced rate on spare parts and allowing the sale of vessels to overseas purchasers without having to pay back a 10 percent duty concession.

As previously announced, hotel operators are being granted an extra three-months of lower payroll tax at 7.75 percent. The discount period will now cover November to March.