Police were last night hunting a taxi driver who held a knife to the throat of a visitor who accidently struck his cab with a car door.

The American cruise ship passenger tried to apologise for bumping the vehicle while getting into another taxi, but he was reportedly racially abused by the taxi driver who then held a blade to his throat and threatened him.

Police have the licence plate number of the alleged assailant who was still on the scene at a Horseshoe Bay car park when the shaken 54-year-old visitor fled in another cab. An arrest is expected shortly.

The tourist, who is staying onboard the Zenith , was left shaken and upset.

Tourism Director Gary Phillips said: "Any incident like this is one too many.

Clearly anything that upsets a visitor is a negative for Bermuda.

"It doesn't matter whether it's a tourist or a Bermudian that has been affected. But people choose a comfort level when they pick a destination and Bermuda still has a far better sense of comfort than other places.'' Shadow Tourism Minister David Dodwell said: "I couldn't believe it when I heard the news. We clearly don't want anything that impacts on our fragile tourism industry.

"Bad news always travels five times quicker than good news. And it's such a shame that this should mar the good name of the highly-respected taxi industry. I feel very sorry for other drivers.'' Walton Brown, who chairs a taxi advisory committee for the Ministry of Transport, said he was shocked by the incident.

"It's a very disturbing development,'' he said, "firstly that the driver was racially abusive and secondly that he used a weapon to attack. It's something unique.'' "Up until now the concern has been that taxi drivers have been under attack from other passengers, but I never would have expected this.'' He added: "I have heard of taxi drivers reacting when they think they have been racially abused themselves, but all taxi drivers will be appalled. They are all very concerned that the culprit is caught.'' But Mr. Brown said he did not think it would hinder future taxi trade. He said: "I think people are astute enough to realise that this is a one-off incident.'' As The Royal Gazette went to press last night no arrest had been made.

Police spokesman P.c. Alan Oliver said: "This incident is a cause for great concern and every effort is being made to conduct the investigation as thoroughly as possible.'' Negative: Gary Phillips