By Tim Greenfield Bermuda could see an extra 9,000 air visitors this year from new flights to the Island.

Tourism Minister David Allen said thousands of additional holidaymakers could be heading in this summer on new flights from St. Louis, Atlanta and La Guardia.

The additional flights, together with increased capacity on other routes, will bring an extra 34,000 seats this year.

The minister predicted visitor numbers could rise from 354,000 to 363,000 as a result of the increased airlift.

But he added that he was prepared for a hotel occupancy deficit in the first quarter of this year, adding that the second quarter could be as high as 86 percent, 83 percent in the third quarter and 55 percent in the final quarter of the year.

Speaking during the budget debate on tourism, Mr. Allen also defended the cruise lines, adding that as well as a $1.8 million retail boost from one line, another was setting up a $1 million college fund for local students.

Royal Caribbean Cruise Lines is to give $200,000 a year for a scholarship fund for hospitality students to study overseas.

And the Minister said continued investment in tourism education was an important feature of his policy, something which he said was lacking with the previous Government.

"We have seen scholarships for the legal profession and the banking profession, where were the scholarships for the hospitality industry? Is it any wonder they are going into international business or law, that is where the opportunities have been,'' he said.

In a wide-ranging, four hour and thirty five minute speech, Mr. Allen gave a historical tourism review and a look at the current activities of the department.

Although the number of available beds had dropped from over 8,000 to 6,586 today -- a 30 year low -- he said the Castle Harbour, Belmont, city centre hotel and Daniel's Head eco-village could add to the inventory.

And, revealing more of the Castle Harbour incentive package, he said the relief on drinks in return for Bermudian entertainment, could be worth up to $400,000 a year for the hotel.

With a 200-room hotel, he said it could open by the Spring of 2002. There will also be a 40-unit residential factor, with fractional ownership giving further accommodation for visitors.

An investment group was prepared to sink $180 million into the former Club Med property, he said, adding that a venture capital group had notified him they were prepared to back the DeVille city hotel to the tune of $100 million.

Mr. Allen also confirmed the moving of the timing of the jazz festival, from October to early September, in a bid to avoid a lack of flight seats and hotel rooms experienced last year.

And next week up to 700 travel writers from the US east coast are heading for a three day Island summit.

David Allen HOUSE OF ASSEMBLY HOA