Government could be set for a climbdown over a warning issued to Norwegian Cruise Lines over cabin bookings on one of their vessels.

Tourism Minister David Allen and NCL chief executive Colin Vietch met on Thursday for talks over concerns that the Norwegian Majesty may have been exceeding agreed limits on passengers.

And, although neither party has commented officially on the meeting, it looks likely that a deal will be thrashed out which allows the Minister to save face on stern comments he made about the situation.

It will probably involve a financial contribution to the local economy, possibly along the lines of similar sweeteners given by other cruise lines, in return for selling extra berths to normal passengers.

Previously, Mr. Allen claimed he had read the riot act to NCL, stating that the company had a "serious problem'' if they had broken the rules and may have voided their contract.

He added that a full investigation was to be made into the numbers, saying that NCL had been apologetic over the issue -- promising not to sell any additional cabins until the meeting.

Yesterday, a NCL spokesman said both sides had agreed that nothing would be said about their discussions.

"We are hoping to reach a resolution that both sides are happy with,'' he added.

Faxed questions on the outcome of the meeting were not responded to by Mr.

Allen.

After stretching their vessel in 1998, adding 500 extra berths to make a total of 2,000, NCL were supposed to sell the additional berths above their original 1,500 to `cruise and stay' passengers -- leave them empty.

But an investigation by The Royal Gazette revealed that little or nothing was known about the scheme overseas, and it was understood that very few holidays had been sold.

Cruise industry sources believe NCL, which is a Bermuda-registered company, will want to try and sell the unused cabins to regular passengers.

The source said it didn't make economic sense not to do so, and added the Minister should consider the argument that the ship was merely taking up some of the slack of the loss of rooms in the East End.

He said many of the 1,000 hotel beds that had been lost -- from the closure of the Marriott Castle Harbour and refurbishment of the Palmetto hotel -- had hit the St. George's economy and this was a way of assisting that.

One possible option is that the cruise ship is allowed to sell the extra berths until the new hotel rooms come on line at Castle Harbour and Palmetto.

In return they may offer a donation to assist the tourism industry or fund a scheme similar to the Horizon vessel, which gives each passenger a $50 card to spend in St. George's.

TOURISM TOU