Hoteliers fear that Bermuda's fragile tourism trade could be in for even harder times in the coming months as a result of the terrorist attacks in the United States.

There is concern that in the short term, American tourists will be reluctant to fly following Tuesday's traumatic hijackings.

But there is uncertainty among hoteliers about whether in the longer term airlines are going to suffer a significant drop in holiday bookings as fear of terrorism takes hold.

Hotels have already suffered cancellations this week due to the ban on flights in and out of the US imposed on Tuesday.

Bermuda's largest hotel, the Fairmont Southampton Princess, also reported yesterday that it has suffered cancellations of more than 1,100 rooms stretching into the coming week.

Bermuda Hotel Association president Billy Griffith said yesterday: "It is obvious that it is going to be tough. For the next month we are going to be challenged for business from the United States."

Mr. Griffith, who is also president of the Harmony Club, added: "At Harmony we have had some cancellations, but nothing wholesale. We are still 24 to 48 hours too early to make a prediction about whether business will drop off.

"I don't have a good feeling about the impact, but it is too early to speculate because the airlines haven't said yet when they will start flying. But we've had people re-book for Friday so there are people out there who want to fly."

Southampton Princess general manager Norman Mastalir, said the hotel had lost over 1,100 room nights for the next eight to ten days, which included weekend cancellations and four group bookings.

"We'll wait to see what happens when the stock market re-opens, but I can't imagine things are going to get better. I am certainly bracing myself for this having an impact for the next few months of the year," he said.

"(Americans afraid of flying) will be part of the problem. There will also be people in financial services reorganising their plans and dealing with the reorganisation of their properties in New York and their plans for the balance of the year."

Shadow Tourism Minister David Dodwell, who owns The Reefs, said the psychological reaction of Americans in the next few days would be crucial, but he was optimistic in the longer run that Bermuda will do well.

"In the short term, when the air services come back there will be the security issues of how quickly they get their systems cranked up again to get a sense of comfort and security," he said. "There is also the psychological and emotional reaction to this, what Americans, and indeed all travellers, think about air travel.

"At the moment, it is probably too early to tell because this is of a magnitude never seen before. But I think Bermuda will be better off than most because we are closer to to the US and there has always been a sense of security in Bermuda. On a day to day basis, it depends on how things unfold, but in the long-term Bermuda will be OK."

Stephan Amesoeder, the general manager of Sonesta Beach, said the hotel had suffered some immediate cancellations of people affected by the closure of US airspace.