The almost uniformly dismal visitor arrival figures released last week makes plain what we have all known for some time: Bermuda’s tourism sector is in the doldrums, weakening steadily and showing no immediate prospect of improvement.This, coupled with the well-publicised travails of many illustrious guest local properties of late, has left foreign investors understandably skittish about Bermuda — and frustrated developers short of options.Thus the announcement last week that Bermuda’s Government has granted a letter of comfort to Morgan’s Point Limited to help secure initial financing was perhaps to be expected. Nevertheless, the Finance Minister’s willingness to guarantee up to $125 million of the proposed $2 billion development sets an awkward precedent.That is not to say developers should be made to fend entirely for themselves.This Government has quite properly continued the policy of granting generous tax concesssions for hotel construction and renovation. However, to partially guarantee the financing of a luxury hotel is an altogether different proposition — and one not obviously justified in the public interest.Even if we are to accept that no new hotel will now be built without a sovereign guarantee, several troubling questions arise.For instance, given the grave pronouncements made in recent months over the Island’s burgeoning public debt, can Bermuda really afford to pledge so many millions to an inevitably uncertain investment?Moreover, if the Morgan’s Point project is truly exceptional in meriting a sovereign guarantee — as the Minister asserts — what makes it so?Mr Richards has said that if financing is secured, he believes the Morgan’s Point project “will turn a brownfield site into a stunning new resort — leading Bermuda back into the forefront of the hospitality industry”.That would be a tall order for even the most experienced tourism hands, let alone three men who — although distinguished in their own fields — have no industry experience to speak of. The Finance Minister may very well be sold on the resort’s potential, but his comfort letter would have been scarcely necessary if that faith were shared by investors.Mr Richards has alternatively stressed the need for environmental remediation at the former US Naval Annex, an obligation discharged by the American government for a pittance more than a decade ago. The Finance Minister reports that cleaning up the pollution at the site would cost the taxpayer “hundreds of millions of dollars”. To be sure, this would render the proposed guarantee a more attractive alternative. Yet it is unclear how it has come to this, given that just last year Government estimated the process would cost only $38 million.And only two months ago one of the developers told this newspaper that the site “is a lot cleaner than what was expected”.So what has changed in the interim?None of this is to detract from the efforts of MPL. They have shown a remarkable belief in Bermuda which one hopes will be rewarded in time. If the developers could secure financing and proceed on their own initiative, they will have the support and goodwill of every well-meaning Bermudian.Yet although the country would welcome development of Morgan’s Point — and all the benefits that could flow from it — a compelling case remains to be made for guaranteeing even part of the project with public funds. Until that case is made, speculation surrounding Government’s true motives is apt to intensify.So if the guarantee goes ahead, it should be accompanied by a more persuasive justification than what has been offered so far. If not, Mr Richards may find allegations of favouritism and patronage — of the sort that dogged the previous Government until its dying days — landing uncomfortably close to home.