Government has admitted its legislation governing timeshare operations is inadequate.

And new legislation is expected to be drawn up this year or in 1999, According to a letter from Tourism Director Gary Phillips.

The announcement follows a warning by St. George's Club member-investor John A. Vossler that changes to the legislation have to be made if Bermuda wants to have a future in timeshare operations.

The Connecticut native warned yesterday: "We strongly believe that only a revised Timeshare Act along with vital changes to any existing Bermuda Club Rules and Regulations will provide the climate for a return to successful time share operations in Bermuda.'' Timesharing at the troubled St. George's Club is controlled by the Timesharing Act of 1981 as well as the Rules and Regulations for Club Members which were established by the property's original developer York Hanover.

Government was originally opposed to the idea of revamping the legislation, continued Mr. Vossler.

However in March of this year, an accommodation trends study, which included the addressing of the Island's timeshare policy, was commissioned by the Department of Tourism.

And in correspondence with Mr. Vossler, Mr. Phillips said the Timesharing Act would come under review and be either amended or revoked and replaced with new legislation because of "the dramatically changed circumstances between timesharing in 1998 and timesharing in 1981''.

Admitting that the legislation no longer met the needs of the owners or the members of timeshare clubs, he said: "We intend to commence this process of review and recommendation as quickly as possible, because the review of any piece of legislation is a lengthy process.

Timeshare laws to be reviewed "Assuming that the Government agrees that the legislation should be reviewed, we hope that it may be possible to table amended or new statute in Parliament by the end of this year, or early in 1999.'' St. George's Club has lost some six percent of its members due to rising yearly maintenance fees and an additional special assessment fee, continued Mr. Vossler.

These increased fees under current developer Alistair Woolf's tenure plus Government's apparent failure to act as sparked the cry for new legislation, said Mr. Vossler.

"`...(they) are currently contributing to the loss of the right to beneficial use of their investment, by thousands of American and Canadian tourists, at the St. George's Club at the eastern end of Bermuda.

"The recent fee levies have resulted in over six percent of the more than 2,500 member investors walking away from their club membership weeks.

"Many have indicated that they are not returning to Bermuda.'' It was now time for Government to act, he warned.

"Opposition to the Government's and the developer's stance on the issues have dramatically increased in recent months.

"Unless there are significant revisions made to safeguard the Club members, the end result envisioned is for a dramatic reduction in Bermuda tourism and the loss of tens of millions of tourist dollars each year.

"Key to a resolution of the situation has to be a complete review and rewrite of the Timesharing Act and the Club Rules and Regulations,'' stressed Mr.

Vossler.

He called for an Appeals Commission to be created under the revised Act to provide a forum for Club members with grievances against either Government or the developer to seek redress.

US timeshare developer Great Vacations Resorts was on the verge of taking over the club in February but the deal fell through because of financial issues.

Mr. Vossler added that any resale of the East End Club would be put on hold until the law was revamped.

"At the Club's annual meeting in New Jersey on May 17, it was noted that any opportunity for a resale of the club would have to await the new version of the Timesharing Act which may emerge toward the end of the year.''