Government and the Bermuda Industrial Union are close to signing an agreement that could reduce the building cost of hotels, according to Tourism Minister Wayne Furbert.The Minister said an announcement regarding the decision would be made in due course, adding: “We are working hard, and we have an agreement in principle.“The main costs come down to operation and labour in Bermuda. It’s also to do with having to bring in products from overseas, but I believe we can bring down these costs.”His comments yesterday followed a speech on various Tourism Ministry initiatives, which he delivered to Sandys Rotary Club on Wednesday night.According to Mr Furbert, the high cost to build hotels in Bermuda has made it more difficult attracting investors.He also expressed concern about the knock-on effect higher construction costs lead to higher room rates.“The present cost structure does not work for investors. A million dollars a room is not feasible,” Mr Furbert added.The agreement with the BIU was one of several initiatives expected to be undertaken by the Tourism Ministry in the coming year.According to Mr Furbert, Government will also soon announce a new advertising agency for the Island.The Ministry would work with the selected agency on the specifics of the advertising strategy, which will target the US North East and Canada.The coming five to ten-year tourism plan, expected to be ready this summer, would play a part in forming the campaign, he added.A total of $13 million was dedicated towards advertising in the last Budget, Mr Furbert said.In the meanwhile, he said five UK radio stations are currently broadcasting live from Bermuda, promoting the Island and the Ministry is holding a “high profile event” at Grand Central Station next week, to be followed by a trade event with travel agency and meeting partners invited.Mr Furbert declared that the recovery campaign to revive the tourism industry has begun, saying: “We will put tourism back on track and, at the same time, substantially increase foreign exchange through increased visitor numbers.“We can no longer live with hotels trimming staff, reducing inventory and hospitality employees working just six months a year. We need to get back to business, renew our commitment so that those who want to work are able to work year round in a career they enjoy.”A contributing factor for the decline in tourism, he said, was the decline of Bermudian hospitality, saying: “Today, we have to go into primary schools to teach our youth how to be hospitable.“Even though many of us go out of our way to accommodate our visitors, we have to face the fact that there is a segment of our community that is less tolerant of our guests and treat them as if they are nuisances to the Island.“We have to change this mindset in order to survive and sustain tourism.”Some other factors listed by the Minister were the decline in the global economy and the impact of September 11 on air travel.In order to turn the industry around, he said several initiatives being pursued by the Government, including reviewing visa issues that restrict travel to the Island.One possibility being considered is removing visa requirement for visitors from Brazil, Russia, India and China, all of whom already need a visa to pass through the UK, US or Canada before arriving in Bermuda.He also said the Ministry is looking at opportunities to promote Bermuda’s cultural heritage and local entertainment, saying that they are working to put on a signature event from May to October.“To make this work, we need your support by encouraging your guests and friends to attend,” he said. “If this fails, we all fail.”The Minister also criticised the media for negative articles creating bad publicity for the Island, saying: “The electronic media can do much more to promote Bermuda in a positive light, but the downside is that it is far reaching and could also be severely damaging to our tourism industry.”