Meyer Shipping boss Henry Hayward said Government should not allow any more condominium developments on hotel sites if they result in the number of tourist beds being reduced.

Mr. Hayward said he experienced difficulties getting beds when ships were changing crews, or tourists came on fly and sail vacations, particularly in June and July. Last night Mr. Hayward, who is also Mayor of St. George's, warned the Island not to "condominium-ise" itself out of tourism by losing hotel beds to condominium developments.

"Each hotel redevelopment needs to be taken individually, but in the overall picture, they must be aware that we don't condoninium-ise ourselves out of the tourism business," he said.

"The answer, if the Tourism Minister says is to go after the affluent guests who will pay the hotel rates, then that's the market to go after and we must have rooms available.

"We (at the Meyer Group of companies) have had problems when we need rooms, certainly in June or July booking ahead, because we are not being able to find accommodation.

"It is concerning that there seems to be so much emphasis on condominium construction to the detriment of hotel rooms, which is a reflection on our potential to be in the tourism business. We have cruises that come in and sometimes require 20 or 25 rooms when they are changing crews. In one case in June, which is not a cruise ship, this vessel might not call.

"Bermuda has to decide whether it is in the tourism business or not and surely tourism is one of the so-called pillars of our economy.

"There seems to be a demand for condominiums, which is all very well developing these properties, but what is in the best long-term interests of Bermuda."

A number of former hotels have been redeveloped with condominiums or town houses, including the Tuckers Point Club - the former Marriott Castle Harbour, Palmetto Palms in Flatts, Belmont