leisure redevelopment could have stopped progress for another tourism project.

It is understood that backers of the potential new Belmont golf, residential and tourism project were shocked at the news that a $30 million "sweetener'' was to be offered to would-be financiers of Castle Harbour.

Questions are being asked overseas whether the Belmont plan will be able to compete on a level playing field, if they are not offered a similar deal.

And sources close to the developers say at present the Belmont deal, which is similar in many ways to the proposals for Castle Harbour -- the former site of a Marriott resort -- is not proceeding at present.

But Tourism Minister David Allen said he is open to new proposals, adding that each case would be considered on its own merits.

And he said he was not aware of any setbacks in the deal, adding that he was very happy with the plans, which he said had identified a hotel management partner.

"We will look at each project on a one by one basis but it is not for me to say,'' he said. "We have a Cabinet committee, which I chair, but these are reviewed by the full Cabinet for approval or rejection.'' A source close to the Belmont group said they were "side-swiped and disheartened'' by the announcement that Castle Harbour would be given a $30 million "back-up'' of land tax credits from the sale of residential units at the site.

They added that it appeared from the outside that Government was going to shore up one project, giving it an unfair advantage over others trying to get underway.

And, he said, it had shaken financiers' confidence, some of whom were advising a "cooling off'' period until it became clear exactly what the policy was on-Island.

But another developer involved in a different hotel project said the onus should be on the project managers to present their case to Government, not vice-versa.

"If you don't ask it is really no fault of anybody than their own,'' he said.

"If you ask and Government say no, then you have your answer.'' He added that each individual scheme is different and it would not be the case that every project would be offered a guarantee similar to the Castle Harbour deal.

"Is Castle Harbour that important to the foundation of the new tourism package, perhaps.

"Even more so than other developments, even more so than King's Point? I don't think so.

Belmont group says it feels side-swiped "Ideally we should all be working hand in hand.'' Mr. Allen has indicated that he is amenable to different kinds of investment proposals to bring tourism projects to the Island.

"We said we would be willing to create a template for incentives for new hotel investments in the broad national economic interest,'' he said.

"These developers have to come up and say `this is what we want to do', depending on its size and whether it is fulfilling a market niche for us to help relaunch Bermuda tourism, we are quite prepared to look very creatively at every project.'' Tourism Minister David Allen: `Each case considered on its own merits.'