A local timeshare operation is on its strongest financial footing in years and enjoying a booming trade -- despite recent reports to the contrary.

The news came yesterday as a source within the St. George's Club, who declined to be named, responded to an article in Wednesday's The Royal Gazette .

The article referred to a writ St. George's Club lawyers filed this week against the Bermuda Commercial Bank and the International Trust Company of Bermuda and described the company as "besieged''.

But the source stressed that the article had missed the point and said the club should be described as "becalmed''.

Club developer/owner Alistair Woolf drew flak from a minority group of members when special assessment and maintenance fees were levied to cover operating costs.

Further criticism came from the same members when certain services at the property were axed.

However 97 percent of the club's members paid the assessment fee and approved of the move.

The source said the money raised eliminated the need for a special assessment fee again to cover operating costs.

And now St. George's Club is operating with a balanced budget for the first time in years and is set to continue balanced operations through 1999, 2000 and beyond.

It was also enjoying an average occupancy this year of a whopping 82 percent -- as compared to average occupancies across the Island which are below 60 percent -- disclosed the source who added that the club's average occupancy could be even higher next year with the introduction of new rental marketing programmes.

The news echoes reports from Mr. Woolf earlier this year.

He could not be reached for comment yesterday but in June he told The Royal Gazette that fewer than five percent of the club's members had abandoned their timeshare weeks in Bermuda.

The support of the assessment and maintenance fees had put the club on a sound financial footing, he added.

Timeshare exchange company RCI also rated the east end property at Gold Crown Resort level -- a position enjoyed by about 500 timeshare clubs out of more than total 4,000.

Referring to the writ against the bank, the source disclosed that the legal proceedings had nothing to do with club operations and involved the club's development company -- an entirely separate entity.