More cruise ships could be heading to Hamilton and St. George's, as Government is in talks with more cruise lines.

The Premier will today expand on Government policy at a press conference, following news of Holland America Line's revival of the Island as a destination.

But Transportation Coordinator Larry Jacobs has told The Royal Gazette Government is also in talks with Celebrity and MSC Cruises to bring smaller ships to Hamilton and St. George's from 2010.

"We are in talks with cruise lines and hope to make an announcement shortly. We intend to update the public on the status of discussions," said Mr. Jacobs. What we are aiming for is 2010, which will give the cruise lines an opportunity to do their scheduling and marketing well in advance."

He said: "It is not a U-turn (on Government policy), it is consistent with policy. We never took the cruise lines out of Hamilton and St. George's, it was the cruise lines themselves which decided the smaller ships could be more competitive in Asia, Europe and other markets.

"Most ships being built today are 850 ft but Hamilton and St. George's can only accommodate 750 ft.

"We looked at widening Town Cut but decided there would be too much environmental impact, so this means we are now going out fishing for the smaller ships."

Mr. Jacobs said: "The Caribbean and Atlantic caters for a large cruise ship market, so that's why we're building the second cruise ship pier (in Dockyard).

"Having said that, there are still some smaller ships out there, so we've been in discussions with Holland America Line and MSC and Celebrity."

He admitted: "We've been in discussions with others (cruise lines) as well, and the focus is to see if they've got smaller ships to come into St. George's and Hamilton. That is what we are hoping."

Mr. Jacobs said Government's offers of concessions have attracted more interest among operators.

In the House of Assembly in June, Premier Ewart Brown announced that cruise ships would be allowed to operate late-night casinos in port. Cabinet has also approved plans to waive the $14 cabin tax for Hamilton and St. George's for three years from 2009.

"We are making some concessions to allow cruise lines to get some revenue, including opening up their casinos after 10 p.m.," said Mr. Jacobs. "The cruise lines say Bermuda is a great destination but that they rely on revenue on board the ship, so by not allowing them to have open ships or casinos in port, it does affect their bottom line.

"So we are treating them as partners and are willing to make concessions. As a result we have received a lot more inquiries and interest."

Mr. Jacobs admitted the drop in cruise ships in Hamilton would have impacted on retailers, bars and restaurants.

"There's been a general perception that since the ships have withdrawn from Hamilton, it has impacted on the local economy. So we have been in discussions with cruise companies to bring in smaller ships to Hamilton and St. George's," he said.

On Monday, the Internet weblog Cruise Diva announced Holland America Line is to resume voyages to Bermuda. The MS Veendam will travel from New York to Hamilton and St. George's, with ten trips in 2010 and another 20 scheduled for 2011.