town'' according to his lawyer.

Mr. Shoaf, who has been the centre of controversy for the last two months, announced his intention to quit at a staff meeting yesterday morning.

But while Mr. Shoaf insisted that he was resigning for personal reasons -- he has been the subject of death threats and graffiti in recent months -- one hotel insider says he was forced to quit.

Yesterday's announcement came as representatives of the hotel's owner, Prince Khalid Bin Sultan, left the Island following two days of emergency talks with the manager.

And that visit came just days after a Human Rights Commission investigation found that there was "overwhelming and credible evidence'' that Mr. Shoaf had made a racist comment during a management meeting last November.

It is understood that Mr. Shoaf's superiors were not surprised by the announcement and have confirmed that a potential successor has already been pencilled in for the job.

Shoaf quits Elbow Last night a spokesman for the hotel said: "The Elbow Beach Hotel announces that Mr. William Shoaf, the general manager of the hotel, has resigned.

"Mr. Shoaf will be leaving the hotel in June and will work closely with his successor during the transition period.

"Mr. Jens Grafe, the president of Rafael Hotels Limited, stated that a possible successor had been identified.

"It is anticipated that an announcement of Mr. Shoaf's successor will be made in the near future.'' But lawyer Mark Pettingill, representing Mr. Shoaf, argued that his client had been forced out by a witchhunt campaign which planned to smear his good name.

"I feel he has been offensively hounded out of town -- if this is a sign of what's to come in the new Bermuda then God help us,'' Mr. Pettingill said.

`I was bitterly disappointed when he informed me of his intention to resign.

In saying that I am not surprised at his decision.'' Mr. Pettingill highlighted the fact that it was the Elbow Beach Hotel, through Mr. Shoaf, that had agreed to host the all black World Conference of Mayors last November after other resorts had pulled out.

It was during the conference that Mr. Shoaf was alleged to have said in reference to conference delegates, "next they'll be frying chicken on the front steps''. Mr. Shoaf has steadfastly denied making the remark.

Mr. Pettingill also argued that the Human Rights Commission went well beyond its own authority when in saying that, although technically innocent, there was still a great deal of evidence to suggest that Mr. Shoaf had broken the spirit of the law. He further questioned how the Commission's findings were leaked to the press.

"Although one can understand his personal reasons completely I think at the end of the day the very pathetic and sad thing is there are people who are going to regard this as some kind of victory,'' Mr. Pettingill added.

"If people feel they have accomplished something then the only way that has been done is effectively by a mechanism.

"He has family and young children and I know it's on the basis of a family decision, that it's in the best interests to leave the Island.

"He is bitterly disappointed and I know for a fact that the majority of staff are disappointed but unfortunately this has occurred as a result of what has been done to him and the manner in which he has been unfairly pursued. It's a loss for Bermuda and a loss for tourism.'' The controversy first hit the headlines last month when a representative of the Saudi owner, General Ayed Al Jeaid, threatened to close the resort unless Mr. Shoaf's work permit was renewed instantly. The hotel was only saved by a last minute climbdown by Government, which eventually agreed to meet the demand.

It is understood the General was furious with the way Mr. Shoaf was being treated by immigration officials.

Last night Tourism Minister David Allen would not be drawn on whether Government was satisfied that Mr. Shoaf had resigned in light of the Commission's findings.

"I don't want to go into that but there are many unfortunate aspects to this entire case,'' Mr. Allen said.

"We are only interested in looking forward and Bill Shoaf has decided -- or at least someone has decided -- that that's best served with a change of management.''