the Premier to order the formation of a special committee to "restore the viability of local hotels.'' Government officers and top hoteliers will study the issues that have seen the largest hotels report total annual losses of millions of dollars.

The decision to form the committee was taken during an annual meeting yesterday morning between senior Government ministers and top officers of the large hotels.

"During the course of the meeting, it became evident that the economic difficulties faced by hotel owners in Bermuda have become serious,'' Premier the Hon. Sir John Swan said in a statement released last night.

"As a consequence of this, and because hotels are so vital an element of Bermuda's economic life, it was agreed that a joint committee would be formed immediately to inquire into the issues involved, and to devise a plan to restore the viability of local hotels.'' The high cost of doing business in Bermuda was the primary concern expressed at yesterday's meeting, which took place at The Princess Hotel.

To illustrate their case, hoteliers told the Premier fuel costs claimed 19 cents of every dollar spent on guests compared to an international norm of about four cents on every dollar.

Hoteliers at the meeting included Mr. Paul Sonnabend of Sonesta, Mr. John Jefferis of the Elbow Beach Hotel, Dr. James King of Grotto Bay, Mr. Lorenzo Giunnuzi of Forte Properties which represents the Belmont Hotel, and Mr. Karl Kilburg of Marriott Hotels.

Government ministers at the meeting included Labour Minister the Hon. Irving Pearman, Finance Minister the Hon. David Saul and Tourism Minister the Hon.

C.V. (Jim) Woolridge.