A big Bahamas resort says it has laid off nearly a fifth of its employees as the world economic crisis slashes tourism across the Caribbean.

A statement from the Westin and Sheraton Grand Bahama Our Lucaya Resort says 181 employees, or about 18 per cent of its beachfront workforce, have been let go.

The statement Sunday said hotel bookings are sliding "with no evidence of improvement", as the United States recession keeps hundreds of visitors at home.

The resort is owned by White Plains, New York-based Starwood Hotels and Resorts Worldwide Inc.

The nearby Atlantis resort has dismissed about 800 workers this season, while Baha Mar Resorts Limited laid off some 80 employees at two Bahamas locations.

- AP