develop the European market, the Tourism Board's chairman said yesterday.

Mr. Kirk Cooper said a request to bolster the Ministry's existing European budget fell victim to Government spending cuts.

He made the statement as local businessmen and the Opposition attacked the Tourism Minister for failing to exploit the European market.

Mr. Cooper said the rejection effectively compromised Tourism's plans to cultivate a market it has considered ripe with potential.

Since 1989, key markets within Europe have been targeted by Tourism for development. But diminishing budgets and faltering airline connections have hampered results.

Mr. Cooper said negotiations were in gear with the charter airline LTV, a subsidiary of Lufthansa, to provide a direct link with the continent.

"We're close, but we've got some more work to do,'' he said.

Mr. Cooper also revealed that he was optimistic that British Airways would soon decide to increase its Bermuda flights by one to three a week.

The Finance Ministry said no to Tourism in the lead-up to this year's Government budget.

Tourism had applied to increase its $2 million European/UK budget by nearly $700,000, with additional plans to find another $300,000 within its existing Departmental budget.

"They turned these proposals down,'' Mr. Cooper said.

Finance Minister the Hon. David Saul was not available for comment last night.

The rejection held Tourism's UK/European commitment to virtually the same level it had in 1988, the first year it determined to go after more tourist arrivals from there.

Year-to-year projections called for 10 percent growth in UK arrivals and 20 percent from Europe.

The targets were met in 1988, but faltered in succeeding years with inflation-pegged budgets and British Airways cutbacks that reduced its Bermuda service to two weekly flights from six.

"While we have gone off in our numbers we haven't gone off our objective as seeing Europe as an important source of business,'' Mr. Cooper said.

The LTV negotiations represent Tourism's major effort in making it easier for European visitors to get here.

Mr. Cooper said LTV, in its hesitation about competing against British Airways, wants a risk-sharing deal that would see Government commit to paying the airline if business falls below set levels.

"Government is basically not in favour of it,'' Mr. Cooper said. "But we think we may be able to discuss an arrangement that is not unreasonable. We may be able to put a limit on it. It's worth a try.

"We're not sitting on our duffs on this,'' he said in answer to recent criticisms of the Ministry's work. "We're working like hell.''