Bermuda is playing a risky game by relying heavily on reinsurance business in the light of recent terrorist attacks says former Premier John Swan.

Sir John said the risk highlighted the need for Bermuda to boost tourism.

He said: "We talk about the twin pillars of our economy but one has pretty much crumbled.

"International business is limited to reinsurance and you can see what happened with the World Trade Center. If we see another incident like that we have a serious problem on our hands."

Sir John renewed his call for a radical revamp of Hamilton as a thriving hub of yacht-based tourism as well as a vibrant place to live and work.

He said Bermuda was one of the few places in the world where property in the city was worth less than outside the city.

He said: "61,000 of the 62,000 people live outside the city. I can't think of another country like that."

He called for a jetty to be built in Hamilton harbour from Number one shed to White's island to provide safe mooring for yachts.

"We need to encourage them to come here by getting rid of import duty on boats. We want people with money, yachts people have money but currently we discourage them."

He said a casino on Front Street would also encourage wealthy boaters. Space for the casino and new pubs and restaurants could be created by moving the docks to St. David's suggested Mr. Swan.

He called for restrictions on foreign ownership to be lifted to allow foreign investment and management of shops catering to high class tourists.