The cancellation of a cruise ship sailing to Bermuda will cost the local economy more than $250,000, it emerged yesterday.

On Saturday night the Royal Majesty ran aground ten miles from Nantucket Island, near Boston, and was eventually freed on Sunday by tugs using their propellers to dig a channel in the sand bank.

It finally docked in Boston yesterday where its 1,500 passengers and crew were able to disembark. However the ship will have to be inspected for damage and the owners, Majesty Cruise Line, said it would not return to Bermuda this week, as scheduled.

Yesterday it emerged that the cancellation, based on 1994 figures, will cost the Bermuda economy $259,000 in lost revenue.

It is estimated that every cruise passenger spends $191 during their stay and the Royal Majesty was due to return with 1,016 passengers. In addition there is a $61 departure tax per person and $4,000 port fees.

Mr. Bobby Rego, President of the Bermuda Chamber of Commerce, said: "There is no doubt that the cancellation will have an effect on the economy, particularly in the St. George's area, but also the business community as a whole.

"We take these ships visiting for granted, but suddenly you lose one and you realise what impact it has. I would say this is a very significant miss.'' He added: "Cruise ships have a limited time in Bermuda and you have to try and get as many revenue dollars as possible in that time and missing one will certainly have an effect.'' Each cruise ship carries, on average, 1,000 passengers and the cancellation of the Royal Majesty will mean a loss of a fifth of the revenue expected this week.

Last night, the Minister for Tourism, the Hon. C.V. Jim Woolridge, said he was thankful that no passengers or crew were injured when the ship ran aground.

"The ship was scheduled to come back, but this is one of the breaks that happens. An accident can happen, it is one of those things,'' he added.

Yesterday, it also emerged that the liner was outside normal shipping lanes when it ran aground in 11 feet of water. It needs 19.5 feet of clear water to sail.

Coast Guard officials are investigating why it was between 10 and 17 miles off course in an area of shallow water which was plainly marked on nautical charts.

The vessel, built in Finland in 1992, is equipped with state-of-the-art electronic navigation equipment, but Coast Guard Chief Petty Officer Mr. Glenn Rosenholm said: "They were outside normal shipping lanes. The shipping channel is several miles from there.'' The Royal Majesty would have docked in Bermuda today and left on Friday, but yesterday its Miami-based owners confirmed the cruise had been cancelled and passengers offered three different forms of compensation, including another trip to Bermuda.

BACK IN PORT -- US Coast Guard officers watch as the 568-foot Royal Majesty is brought by tugs into Boston's Black Falcon cruise terminal yesterday.