THE $49 return airfare for US package tourists unveiled by Tourism Minister Ewart Brown last week has been made possible by a $165 per booking contribution from hoteliers as well as Government subsidy, .

But the deal between the Department of Tourism (DOT) and Massachusetts-based TNT Vacations was struck, and the special offer advertised at a Boston travel fair, before hoteliers were told of what would be expected from them.

The 11-week programme applies to travel from February 9 to April 23 and many hotels have opted to participate.

One hotelier, who preferred not to be named, expressed concern and said: "I've never seen it done like this before. They put the deal together, launch it, then tell the hotels, after the fact, that there is a $165 charge per booking."

Dr. Brown yesterday confirmed that hoteliers had not been consulted before the deal was made ? but he said he had to strike while the iron was hot.

"In a nutshell, the hoteliers are right ? we moved very quickly to get the TNT deal done and did not engage as I would have preferred," Dr. Brown said.

"However, we are happy that 17 properties have signed up and we think the venture will be successful."

Dr. Brown added that the DOT was subsidising the TNT charter, but did not say how much was involved.

And he stressed that Government was not subsidising low-fare carriers JetBlue or Spirit.

However, he added: "We will provide massive marketing for the JetBlue flight and have a very small minimum revenue guarantee in place for Spirit."

A Bermuda Hotel Association (BHA) memorandum, sent out to its members last Thursday ? the day Dr. Brown announced the stunning $49 return fare ? reveals that BHA directors had discussed the TNT offer with the Ministry representatives on that same day.

"This partnership has provided Bermuda with the opportunity to offer lower airfares during our winter season," the memo stated.

"This programme was launched last Friday at the Boston Vacation Expo with a starting round-trip airfare price of $49 per person and hotels offered very competitive rates, however you may not be aware that this programme initially required participating hotel support in the form of a guarantee."

BHA directors and DOT officials had agreed earlier that day to a hotel contribution of $165 per booking, the memo added.

Hotels which had offered heavily discounted winter rates before learning of the deal could discuss revising those rates with a TNT representative.

Tom Lamb, managing director of the Pompano Beach Club in Southampton, said he was "delighted" with the TNT offer and praised the DOT for its initiative.

The Pompano Beach Club reopens on February 27 after the completion of extensive renovations and Mr. Lamb heaped praise on the DOT for its role in securing the TNT deal.

"Certainly the hotels are contributing or this would not be possible," Mr. Lamb said. "It's my understanding that the DOT is also picking up some of the bill.

"For people to be able to come down here for $49 ? we have not seen that type of thing in a very long time. As hoteliers, we are very excited about it. It's a great deal for the consumer. It's been a growing concern that the airfares have been too high. And having this offer available until late April will enable us to see what kind of positive impact a low airfare can have."

On its web site, TNT is offering several Bermuda packages. One was advertised as a $49 flight only deal.

However, when inquiring on Monday about cost and availability of such a flight in March, the total cost of the return fare from Boston turned out to be $283.50, a price including $84.50 in Government fees and taxes.

In fact, it proved impossible to find a $49 flight only fare available for any of the flying dates advertised.

A TNT representative, when asked why the $49 fare was being advertised when it was not available, explained: "The $49 fare is for a limited number of seats. I know we still have $49 seats available for some dates.

"Perhaps we should take that off the web. It's been causing a lot of confusion today."

By Wednesday, that offer had been removed from the TNT web site.

The $49 fares still available were being sold as part of package offers.

For example, a three-night stay at the Surf Side Club with airfare from Boston was advertised at $349 and, apart from the addition of Government fees and taxes, that's what it cost at the booking point.

And a $399 deal for three nights at the Fairmont Southampton Resort at another randomly selected date was also available as advertised, as was a $549 deal for seven nights at Grape Bay Hotel and a $299 deal for three nights at Grotto Bay.

l JetBlue will start its New York to Bermuda service on May 4, subject to approval by the US Department of Transport, Dr. Brown announced yesterday. Fares will start from $129 one-way and there will be two flights daily.

The first will leave JFK at 8 a.m., arrive in Bermuda at 11.15 a.m., then leave the island at 12.05 p.m. and be back in New York by 1.20 p.m. The second flight will depart JFK at 2.10 p.m., arriving here at 5.25 p.m. It will leave Bermuda at 6.15 p.m., arriving in New York by 7.30 p.m.

"The miracle of JetBlue will ideally appeal to travellers who up to now have discounted the possibility of travel to Bermuda as a 'will get there some day'," Dr. Brown said.