Mr. Dexter Mead, of Newbury, Massachusetts, said: "Bermuda sells itself to the world as a crime-free state, and it surely isn't.'' Along with his wife Jane, Mr. Mead was interviewed by the Merrimack Valley newspaper.

And the paper splashed a headline "Paradise Lost'' across its front page along with a picture of the couple and the Cambridge Beaches Hotel where they stayed in Bermuda.

The Merrimack Valley Sunday is part of North Shore Community Newspapers which circulate, free, to around 500,000 homes in the area north of Boston, a major region for visitors to Bermuda.

In the story, Mr. Mead, aged 70, and his 69-year-old wife say they visited Bermuda to celebrate their fifth wedding anniversary.

Editor Mr. Ric Waldman described Cambridge Beaches as "a posh cottage colony spread over not-quite 25 exceedingly private beach-front acres in Bermuda.

Four hundred bucks a day, breakfast and dinner included.'' Mr. Mead said it started off as a "gorgeous vacation'' but in the early hours of the morning on the last day of their stay on Tuesday, March 15 the robbery happened.

The couple claim they awoke in terror to the sight and sound of a large, masked man forcing his way through the patio door. The paper reports, dramatically: "Instantly he was on the bed with a knife to Jane's throat.'' Mr. Mead said: "He said don't turn on the light then asked me how much money we had. I said I had $300 but didn't know where my wallet was. My wife said she knew where it was so the guy pounced on me and held me down while she got the money.'' The paper reported how the intruder then sliced the phone cord and forced the couple to cover their heads with pillow cases while he escaped. They woke a neighbouring visitor for help.

Four weeks after the event Mr. Mead said: "We see him in silhouette wearing a ski mask or a hood. We see him come through the door and come to the bed over and over again.'' They reported the incident to the Police who claimed it was probably a drug-related robbery.

The report continued with an interview with controller manager of Cambridge Beaches, Mr. Ivan Davies who told the paper that there were security patrols in the grounds at the time of the attack, and they have been increased since.

Mr. Davies admitted he was horrified by the incident, which is the first of its kind since the resort opened in 1947.

Then the manager of the agency that booked the Mead's holiday in Bermuda, Ms Barbara Milhender said: "My attitude toward clients is that you can get robbed anywhere.

"Americans stick out wherever they go. They look like they have money. I tell people not to shut their brains off when they travel abroad.'' Bermuda's Director of Tourism, Mr. Gary Phillips added: "While statistics bear out our reputation as a safe place, we would certainly not say this is a place where nothing ever happens.

"I would like to point out that there is (currently) no crime wave that would lead us to advise travel agents that Bermuda is no longer one of the safest places to visit.'' The Meads were given their vacation free because of the experience, and Mr.

Mead is quoted as saying he would return to Bermuda in the future.

He said: "I don't think anyone should stay home because they have a fear of crime. After all, this was an isolated incident.''