following Government's decision to award it a contract previously held by rivals Norwegian Cruise Line, Tourism Minister David Allen revealed yesterday.

But the decision to cut NCL adrift in favour of Celebrity could lead to legal action against Government, it was warned last night.

Mr. Allen announced that Celebrity's Horizon will make a twin-port St.

George's/Hamilton visit to Bermuda and the owners have pledged a $50 voucher for each adult passenger to be spent in Island shops and restaurants -- a possible $1.8 million in revenue a year during the five-year contract.

But The Royal Gazette can reveal NCL also offered an extra -- a $1.2 million commitment to construct the planned boardwalk along the waterfront in St.

George's.

And last night Shadow Tourism Minister David Dodwell warned the Island could face legal action by torpedoed NCL -- plus a massive bill if Government were to lose a court case.

Wendell Hollis -- lawyer for Norwegian Cruise Line -- did not rule out legal action in the future.

Mr. Hollis said the news came out of the blue -- and NCL had not been aware of negotiations with Celebrity.

He added: "Our position is that we were shocked and disappointed by the news and the company is considering its position...

"We would look to maintain good relations with Government, so we would like to think litigation would be a last resort.'' And Mr. Hollis confirmed the boardwalk offer in competition with the Celebrity voucher deal.

He said: "That's building something of substance -- this whole business of giving money away is not something we would have considered.'' Mr. Allen told the House of Assembly yesterday that the suggested replacements for the Norwegian Crown -- which is heading for the Far East -- were not acceptable.

NCL offered former occasional caller the Leeward and the Norwegian Sea . One of the ships is a little smaller than the Norwegian Crown and the other slightly bigger.

Mr. Allen said: "In accordance with its contract with the Bermuda Government, the company did offer two vessels from its fleet that it felt could replace the Norwegian Crown .'' But he added: "However, after very careful consideration, including personal inspection of the vessels offered and consultation with a number of constituencies, the Government has determined that the Norwegian Cruise Line has not offered Bermuda a vessel of the `comparable size, quality and passenger capacity' as required by St. George's in particular and Bermuda as a whole.'' Mr. Allen said: "I'm pleased that we have, however, reached an agreement with Celebrity Cruises on very short notice and, subject to final contract signing, the MV Horizon will commence the two-port St. George's/Hamilton service with effect from next year.'' He added: "It is of particular note that Celebrity Cruises has agreed to offer all guests on the Horizon , for the duration of the contract, a $50 dining/shopping voucher redeemable only in Bermuda shops and restaurants.

NCL cruise line cut adrift "This has the potential of adding nearly $1.8 million to the Bermuda economy each cruise season and also furthers Government's objective of exposing cruise visitors to other components of a land-based Bermuda vacation.'' Mr. Allen said together with increased capacity on Air Canada routes to Bermuda over the next two months, plus new flights from St. Louis, Missouri, and extra Delta flights from Atlanta, the tourism industry was clawing its way back.

And he said: "These cruise and airline developments are just part of new relationships that the Government is establishing with industry partners and our success to date bodes well for the continued success of our industry in the future.'' David Allen