leading hotelier said yesterday.

Dennis Tucker, president of the Bermuda Hotel Association, said cruise operators were off-loading cabins at rock bottom rates due to massive over-capacity in the industry.

It is felt that Caribbean hotels may be forced to cut rates to compete -- and that the same might happen to Bermuda if more cruise ships are allowed to berth.

In addition, any threat to the hotel industry is a threat to jobs and Bermuda Industrial Union chiefs fear Bermuda could experience serious unemployment.

Tourism Minister David Dodwell is expected to unveil a review of Bermuda's cruise ship policy soon.

It is due to go before Cabinet shortly and if approved will be unveiled publicly when it is presented to the House of Assembly.

No date has been fixed for its House debut, but cruise ships normally start arriving in Bermuda in March for repositioning cruises and then in April for normal Bermuda voyages.

Last year ,the number of visitors to Bermuda rose, but the increase was due largely to a jump in the number of cruise ship passengers who tend to spend less that those arriving by air.

Yesterday Mr. Tucker said an article in "Consumer Digest'' called Top Cruise Values, by Arthur Frommer, focused on the cruise ship industry.

In particular, it looked at increased capacity in the cruise industry as operators launched super ships capable of carrying 2,500 or 3,000 passengers.

However cruise ship companies were being forced to cut rates to fill ships as demand increased by just five percent compared to a 15 percent increase in cabins, according to the article.

It says: "The need to fill these giant ships at any price will have a devastating impact on tropical hotels. And the impact has already been felt.

"Speaking recently to a gathering of travel interests, Robert Whitely, president of the United States Tour Operators Association, disclosed that several of his members operating tours to Caribbean Islands had experienced their worst several months in history.'' The article adds: "With cruise ships `dumping' cabins at any price, simply to earn some income from them, large numbers of people will be diverted from the Caribbean land vacations they would normally enjoy.

"Facing sharp declines in their own occupancy rates, Caribbean resorts can be expected to offer remarkably low rates to the tour operators with whom they deal.'' Mr. Tucker added: "With the introduction of mega-cruise ships sailing the high seas and trying to fill their already large inventory of berths, Bermuda must not allow any increase in cruise passengers which would certainly be to the detriment of the hotel industry.

"The cruise industry has a record of heavily discounting their product and offering outlandish commissions which hotels cannot match.

"However, a prudent Government policy which recognises the true value of our regular air visitors in terms of their financial contribution to our economy will result in most Bermudians maintaining an enviable standard of living.'' Last night, BIU president Derrick Burgess said: "The cruise ship business is a threat to our hotel industry.

"Government has to be very careful and cautious when it comes out with its cruise ship policy. The hotels are the main artery of the economy and any threat to them could see people being laid off.''