Venice, Italy  - Farewell to Arms and hello to alms: Author Ernest Hemingway's favourite watering-hole in Venice is offering "poor" US patrons an extended "Happy Hour".

"Harry's Bar of Venice in an effort to make American victims of sub-prime loans happier has decided to give them a special 20 per cent discount on all the items of the menu," says a sign posted in English on the door.

While the sign refers to the home-loan repayment crisis that has hit many middle and lower-income families in the United States, Harry's Bar's owner Arrigio Cipriani admits most of those who drink and dine at his high-end establishment fall into a different income bracket.

Still, "ordinary tourists" are often willing to pay more than they normally would just to soak up the place's "legendary" atmosphere Cipriani told the Corriere della Sera newspaper in an interview published Monday.

Apart from Hemingway, who would order his favourite Montgomery cocktails - 15 parts gin to 1 part dry Vermouth - the restaurant-bar located a short walk form St Mark's Square has been a favourite with film stars and royalty since it opened in 1931.

Cipriani said the discount is aimed at countering the negative impact that US visitors' reduced spending power could have on the lagoon city's tourism industry this year.

"The dollar is in free fall, so I decided to favour those who have appreciated and supported us for years, Cipriani said.

US visitors account for 35 per cent of tourism-related business turnover in Venice according to Corriere della Sera. (dpa)