tourism as rivals in the United States, a high-powered conference of Government and hotel executives heard on Thursday.

Fairmont Hamilton Princess general manager Michael Kaile said that for every dollar spent in 2000, hoteliers in Bermuda made less than 20 cents gross profit, whereas in the US the figure was nearly 35 cents.

He was speaking at the one day Government and Hotel Owners of Bermuda summit at the Sonesta Beach Resort.

Mr. Kaile also revealed that revenue jumped by 9.4 percent from 1999 to 2000.

Occupancy rates went up by 1.3 percent, but room rates were increased by eight percent.

Premier Jennifer Smith led a Government team which included Tourism Minister David Allen, Home Affairs Minister Paula Cox, Cabinet Secretary John Drinkwater, Financial Secretary Donald Scott, and key Tourism Department staff.

The hotel owners' team included Stephanie Sonnabend, the chair of the Hotel Owners Committee, Kevin Frid, regional vice-president Fairmont Hotels, Bermuda Hotel Association President Billy Griffith, Norman Mastalir, general manager of the Southampton Princess, Peter Parker, general manager of Bermuda Properties Ltd., and Michael Winfield, the president of Cambridge Beaches.

BIU president Derrick Burgess and Parliamentary Secretary for Tourism Sen.

Calvin Smith also attended.

The groups agreed to continue to work towards streamlining work permit policy, training, and to work towards improving the functioning of the Hotel Concessions Act 2000, which gives tax breaks to developers or owners who build new hotels or upgrade existing properties.

Mr. Parker, of Bermuda Properties, which is developing the former Marriott Castle Harbour site as the Tucker's Point Club, said the Hotel Concessions Act had slashed ten percent off the cost of construction.

"The Concessions Act is an important element in our plan to redevelop Castle Harbour/Tucker's Point,'' said Mr. Parker.

Mr. Winfield supported those comments, and suggested improvements to the way the Act is operated, which Mr. Allen agreed to consider.

Hotel Owners' Committee chair Ms Sonnabend said a trend hotels will need to respond to is guests' demands for internet access at business centres and in their rooms.

Bermuda will be left behind if it does not have the technological infrastructure, and access at competitive prices, she said.