the US dollar that is hammering the pocketbooks of US vacationers in Europe.

Tourism Ministry officials are putting together a plan to launch an advertising campaign reminding Americans that Bermuda is more affordable than ever.

The move began this week as news reports of vacation hardship are hitting the US media.

Yesterday, the New York Times ran a story out of London headlined: "US Tourists in Shock as the Dollar Is Pounded.'' And Reuter carried a story: "Dollar Woes Clobber American Tourists.'' In each case, reporters are finding easy tales of hardship on the vacation front.

Mr. Philip Davidoff, president of the American Society of Travel Agents warned: "When you hear about coffee and a roll for $15 somewhere, that kind of scares the independent traveller away.'' Exorbitant price tags, even for the most simple everyday goods, are the rule of the day.

"We went into a place in Salisbury and had an ice cream, and it was $6 a bowl,'' one American told the Times. "That really got to me.'' The blow to American spending abroad has developed in recent weeks as the US dollar has sagged to all-time lows against the modern German mark.

In Great Britain -- America's favourite overseas destination -- the pound has risen above $2, making even more wretched the adage that what costs a dollar in the States costs a pound in England.

The new exchange reflects a decline in the US dollar of about eight percent in a matter of weeks. It is a far cry from the mid-1980s when the value of a pound came close to $1.

Tourism's assistant director for marketing Mr. Peter Smith is working on the Bermuda advertising message to exploit the situation to Bermuda's advantage.

Last night, Tourism director Mr. Gary Phillips said the advertisements would probably run in key Atlantic markets such as New York City, Philadelphia, Atlanta and Boston.

"I did have a meeting this morning with our director for marketing to put together a programme,'' he said. "We want ideas for a tactical advertising campaign to take advantage of the situation. Its message will basically be: `Bermuda is more affordable than ever before.''