Mr Clifford said the Cayman Islands has proven that cruise visitors are interested in authentic experiences and that cruise tourism and stay-over tourism can co-exist.

"A persistent myth about the cruise industry is that people who cruise aren't interested in authentic experiences; I want to assure you that nothing is further from the truth," he said.

"Our research shows that 21.2 percent of those who have embarked on our shores this year are already participating in activities to learn about the Caymanian culture."

While addressing the Chamber of Commerce on the future of cruise tourism in Cayman, the Minister said stay-over arrivals are booming.

"When properly managed cruise tourism and stay-over tourism can absolutely co-exist, this fact is in the visitor arrival numbers that we have seen in the first half of 2006," he said.

According to him, mid-year arrivals were almost 100 percent ahead of the same period last year.

In June 2006, air arrivals or stay-overs, numbered 24,000 compared to 14,000 in June 2005. Two years earlier the stay-over arrivals peaked in the same month at 24,000.

In addition, the Cayman Islands has done so well in that sector, being only 17,000 arrivals short of the whole of 2005 so far.

While cruise arrivals compared to last year are about the same at just over one million so far this year.

Mr Clifford told private sector officials that the Ministry of Tourism would continue to monitor the cap placed on cruise arrivals.

"The Government recognises that private enterprise, which has evolved around current levels of cruise arrivals, has certain requirements for viability with an absolute cap," he said.

"Contrary to perception the recommended cap of 9,200 passengers per day still allows for an increase in the absolute number of Cayman Islands cruise visitors per year."

He embraced the partnership with the private sector, saying that they responded to the opportunities that arose from Government's improvements to cruise facilities and visitor distribution.

He noted that the number of retail operations, restaurants, tours and transport services in the service industry told the story.

The Go East Initiative, which focuses on distributing cruise guests to the eastern communities of North Side, East End and Bodden Town, continues to receive urgent attention, he said.

Mr Clifford said the Government policy will lead to a better distribution of cruise arrivals and the spreading of economic benefits to the Eastern Districts.

At present, the capital, George Town, West Bay and the world-famous Seven Mile Beach have been overshadowing the outlying communities.

The Chamber of Commerce members heard of Government's plans to better manage cruise tourism at the 26 July luncheon at the Wharf Restaurant on the Seven Mile Beach.

Mr Clifford, who fielded questions from the audience, expounded on some of the aspects of the Go East Initiative, which is in its infancy.

He said that the Ministry of Tourism will "distribute the economic benefits of tourism across a wider geographical and socio-economic area."

Thus, he added, "Allowing our less developed areas to benefit from the tourism industry at a scale and model, which is appropriate to them.

"Secondly, to improve the destination's carrying capacity for tourism including the better management of cruise tourism."

Government will be working with potential entrepreneurs and helping them turn their vision into a reality, according to Mr Clifford.

The Go East Initiative will facilitate a number of new businesses in the Eastern Districts, which will draw cruise guests east, he said.

"The Go East Initiative is in its infancy but nonetheless presents significant benefits to the visitor experience," he said.

"Prospective small businesses in the east and the local cruise industry overall, as the numbers downtown and along the Seven Mile Beach can be better managed."