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Tourism struggles

While the tourism industry continued to struggle in 2002, many unexpected events took place, especially the untimely death of Tourism Minister David Allen on September 26 at the age of 59.

In January, information posted on the Internet by Tourism critic Tony Brannon alleged that Carnival cruises was being chased out of the Bermuda market by unreasonable demands by Mr. Allen.

Days after Government ruled out the option of visitors hiring two-seater micro cars in the foreseeable future, chairman of the Road Safety Council Dr. Joseph Froncioni said, in his opinion, tourists should have another choice besides rental scooters. He said even with the proposed additional training for holidaymakers who hire bikes, people will continue to injure themselves on the Island's roads.

The same month, Jazz Festival promoter Lee Heiman announced he was pulling out of running this year's event in disgust at working with Mr. Allen whom he described as a joke.

Mr. Heiman also slammed Government officials for harassment and showing no compassion just days after the World Trade Centre disaster last year, which colleagues were killed.

In February, statistics revealed that tourism figures had hit a new low. They reflected that Bermuda had the lowest visitor arrivals in the last two decades. Mr. Allen blamed the figures on the September 11 aftermath, US economic weakness and lack of bed space due to hotel redevelopment.

Staff at the White Sands Hotel told Royal Gazette that two months had passed since their last pay cheque. Thereafter, the hotel was put up for sale after going into receivership with substantial debts, then is sued by Argus Insurance over the non-payment of tens of thousands of dollars in insurance premiums. The Royal Gazette reported in December that the hotel had been sold to a local hotelier.

As he criticised Mr. Allen for not revitalising Bermuda's low tourism numbers, Opposition Leader Grant Gibbons called for an independent Tourism authority to be set up.

At the end of February, Mr. Allen unveiled a new initiative to try and stimulate arrivals. He said the Island would tap into the African-American market with included plans for a soul festival and a new city hotel. However, months later, the Department of Tourism announced a new multi-million dollar TV advertising campaign which targeted wealthy American audiences and emphasised Bermuda's British connection.

During the month of March, rumours swirled that Daniel's Head eco-resort was closed and up for sale. Within weeks, the West End resort closed its doors, amid disappointment, especially from our European tourists.

In May, businessmen John Burcher, who managed the former Oasis night club in Hamilton, and Kevin Souza, applied to have a license for the White Horse Tavern and restaurant in St. George's which had closed last year.

The closure of the waterside bar and restaurant last year was seen as a severe blow to the economic vitality of the Old Town, particularly because it was situated on the square and was the first commercial building seen by cruise ship visitors calling in at Ordnance Island. The popular restaurant reopened in August.

This summer, Mr. Allen launched a new cruise ship strategy. Included in the policy was the recommendation that Bermuda look at upgrading port facilities in Hamilton and St. George's to host a new generation of larger cruise ships which are making calls to the Island.

In October, owners of the Belmont Hotel received a special development order from Ministry of Environment to proceed with a multi-million dollar revamp to include a 120-room hotel and 73 residential suites.

Last month, American businessman Don Burkett and fellow investors applied to form a company, Lantana Resort Ltd., in order to purchase the now-defunct Lantana Colony Club. The Sandys establishment was closed in 1998 after 40 years of operation.

Two weeks ago, Boston-based entrepreneur Clifford Schorer moved a step closer to purchasing the Sonesta Beach Hotel after he applied to incorporate Southampton Beach Resort Ltd. The move will allow him to buy the Southampton resort, which has been on the selling block since 1992 by its owner Aetna Life Insurance.

Mr. Schorer said he planned to refurbish all 400 rooms at the resort allow with other extensive construction plans.

And December tourism figures reflected that tourism numbers are now at the same level as before the September 11 attacks, according to Transport Minister Dr. Ewart Brown.