<PAGE>
                             UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.  20549
                              FORM 10-QSB

(Mark One)

[X] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange 
Act of 1934 for the quarterly period ended December 31, 1996.

[ ] Transition Report Under Section 13 or 15(d) of the Exchange Act for the 
transition period from _________ to _________

Commission File Number:  0-21070


             International Tourist Entertainment Corporation 
             -----------------------------------------------
    (Exact name of small business issuer as specified in its charter)

       U.S. Virgin Islands                             		66-0426648
---------------------------------                  ----------------------
(State or other jurisdiction of                       	(IRS Employer
 incorporation or organization)                     	Identification No.)

            7030 Park Center Drive, Salt Lake City, Utah  84121
            ---------------------------------------------------
            (Address of principal executive offices)  (ZIP Code)

                      	        (801) 566-9000	               
                         ---------------------------
                         (Issuer's telephone number)

Check whether the issuer (1) filed all reports required to be filed by 
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 
12 months (or for such shorter period that the registrant was required to 
file such reports), and (2) has been subject to such filing requirements 
for the past 90 days.
                         	1. Yes            No    X	 
                                 ------        -------
                          2. Yes    X       No     	 
                                 ------        -------

Check whether the registrant filed all documents and reports required to be 
filed by Section 12, 13, or 15 (d) of the Securities Exchange Act of 1934 
after the distribution of securities under a plan confirmed by a court.  
Yes   X    No 	
    -----     ------

The number of shares outstanding of  the issuer's common stock, no par 
value as of September 16, 1997 is 8,015,397 shares.

Transitional Small Business Disclosure Format (check one):  Yes     No X	
                                                               ----   ----


<PAGE>
                INTERNATIONAL TOURIST ENTERTAINMENT CORPORATION

                                 TABLE OF CONTENTS



PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements                                Page Number
                                                              -----------

Condensed Balance Sheet
   December 31, 1996                                              	1


Condensed Statements of Operations
   Three and Six Months Ended December 31, 1996
   and December 31, 1995	                                          2


Condensed Statements of Cash Flows 
   Six Months Ended December 31, 1996
   and December 31, 1995 	                                         3


Notes to Condensed Financial Statements 	                          4


Item 2.  Management's Discussion and Analysis
    or Plan of Operation	                                          6


Part II.   OTHER INFORMATION	                                      8
<PAGE>
              INTERNATIONAL TOURIST ENTERTAINMENT CORPORATION
                          Condensed Balance Sheet
                                  (Unaudited)

                                                               December 31
                  ASSETS                                          1996
                  ------                                       -----------

Current assets:
   Cash and cash equivalents	                                  $   651,395
   Receivables                                                     	13,847
   Deposits                                                        	17,126
   Inventories                                                     	39,803
   Prepaid expenses                                                	12,861
   Prepaid leases-current                                         	166,915
   Current portion of notes receivable - tenants                    	5,024
                                                               -----------
         Total current assets                                     	906,971

Prepaid leases-non current                                      	1,465,933
Notes receivable-tenants                                            	2,259

Film Development costs, net of amortization of $45,000            	855,000

Property and equipment, at cost                                 	5,324,608
     Less accumulated depreciation                                	455,804
                                                               -----------
         Net property and equipment                             	4,868,804

         TOTAL ASSETS                                          $ 8,098,967
                                                               ===========


         LIABILITIES AND STOCKHOLDERS' DEFICIT
         -------------------------------------

Current liabilities:
   Accounts payable                                            $ 1,165,666
   Accrued expenses                                                912,039
   Current installments of capital lease obligations               	23,220
   Notes payable and current installments of long-term debt       	674,636
   Notes payable to related parties                               	508,824
                                                               -----------
         Total current liabilities                              	3,284,384
Long-term debt, excluding current installments:
   Capital lease obligations                                       	(1,934)
   Credit facility, notes, and mortgages payable                	3,926,093
   10% Convertible debenture, due June 1, 2008                  	2,055,000
Security deposits                                                  	26,800

Stockholders' deficit
   Preferred stock, $.001 par value.  Authorized 5,000,000
      shares, issued and outstanding 212,613 shares as of
      December 31, 1996                                               	213
   Common stock, $.001 par value.  Authorized 40,000,000
      shares, issued and outstanding 6,359,985 shares as of
      December 31, 1996                                             	6,360
   Additional paid-in capital                                   	9,598,965
   Accumulated deficit                                        	(10,796,913)
                                                               -----------
         Net stockholders' deficit                              (1,191,375)
                                                               -----------
         TOTAL LIABILITIES AND 
         STOCKHOLDERS' EQUITY 	                                $ 8,098,967
                                                               ===========

See accompanying notes to condensed financial statements.
                                         1
<PAGE>
                  INTERNATIONAL TOURIST ENTERTAINMENT CORPORATION
                         Condensed Statements of Operations
                                     (Unaudited)

<TABLE>
<CAPTION>
                                                                        
                                                    Three Months Ended           Six Months Ended
                                                        December 31                   December 31
                                                    1996          1995            1996         1995
                                                -----------  -------------   ------------ ------------
<S>                                             <C>          <C>             <C>          <C>
Revenue:
 Theater admissions          	                  $  473,641     	449,518       	1,108,639    1,144,170
 Restaurant                     	                  698,269     	476,554       	1,270,824     	797,768
 Concession and retail sales                       	95,857     	126,915         	187,031	     277,704
 Retail rental income                             	127,616      	96,205         	234,321      180,638
                                                ----------   ----------       ----------   ----------
                                                	1,395,384   	1,149,192       	2,800,815 	  2,400,280
Costs and expenses:
 Direct exhibition expenses                   	     35,204      	42,631         	107,518  	   144,633
 Direct restaurant                                	205,104     	127,739         	370,606   	  221,140
 Direct concession and retail costs           	     50,085      	81,048          100,191      151,522
 Other operating expenses                    	     127,633     	113,886         	258,336      241,291
 Selling, general and administrative expenses:
  Salaries and wages                              	395,844  	   325,980         	732,859  	   633,767
  Advertising                                       74,730      	72,345      	   165,371   	  172,515
  Depreciation and amortization                    	82,793     	182,550          164,355     	363,828
  Occupancy                                        	69,301      	72,162          151,127     	159,636
  Other                                           	160,597     	160,183    	     306,866    	 334,484
                                                ----------   ----------       ----------   ----------
                                                	1,201,292   	1,178,522  	     2,357,230   	2,422,815
                                                ----------   ----------       ----------   ----------
  Operating income (loss)                         	194,092     	(29,330)         443,586    	 (22,535)
Other income (expense):

 Interest income                                    	7,216       	2,648      	    11,190       	5,073
 Gain on sale of fixed assets                           	0         	450              500          450
 Interest expense                                	(187,036)   	(189,652)       	(377,449)    (382,540)
                                                ----------   ----------       ----------   ----------
   Other income (expense), net                   	(179,820)   	(186,554)       	(365,759)   	(377,016)
                                                ----------   ----------       ----------   ----------
   Net income (loss)                               	14,272    	(215,884)          77,827  	  (399,552)

Less accrued series B preferred stock dividends         	0     	(53,742)    	          0     (108,655)
                                                ----------   ----------       ----------   ---------- 
   Gain (loss) applicable to common stock 	     $   14,272 	   (269,626)  	       77,827 	   (508,207)
                                                ==========   ==========       ==========   ==========

Net loss per common share  	                    $     0.00       	(0.04)        	   0.01 	      (0.08)
                                                ==========   ==========       ==========   ===========

Weighted average common
   shares outstanding                           	6,359,985   	6,359,995 	      6,359,985  	  6,359,995

See accompanying notes to condensed financial statements.

                                     2
</TABLE>
<PAGE>
                 INTERNATIONAL TOURIST ENTERTAINMENT CORPORATION
                        Condensed Statements of Cash Flows
                                  (Unaudited)

<TABLE>
<CAPTION>                                                                               
                                                                     Six Months Ended
                                                                       December 31
                                                                    1996          1995
                                                                 ----------   -----------
<S>                                                              <C>          <C>                  
Cash flows from operating activities:
   Net loss                                         	            $  77,827     	(399,552)
   Adjustments to reconcile net loss to net cash provided
     by (used in) operating activities:
      Depreciation and amortization                               	164,355 	     363,828
      Changes in operating assets and liabilities:
        Decrease (increase) in receivables and notes 
          receivable-tenants                                    	    8,622 	      15,082
        Decrease (increase) in inventories                     	    11,656         7,007
        Decrease (increase) in deposits and prepaid expenses       	18,349 	       7,844
        Decrease (increase) in prepaid leases                  	    83,457 	      83,458
        Increase (decrease) in accounts payable and other 
          accrued expenses                                        	 57,665  	    235,481
        Increase (decrease) in other operating liabilities               0  	      1,500
                                                                ----------    ----------
          Net cash provided by (used in) operating activities      421,931 	     314,648

Cash flows from investing activities:
   Capital expenditures                                           	(19,613) 	   (160,970)
                                                                ----------    ----------
          Net cash provided by (used in) investing activities      (19,613) 	   (160,970)

Cash flows from financing activities:
   Principal payments under capital lease obligations             	(13,939) 	    (10,302)
   Principal payments on long-term debt                          	 (99,163)  	  (106,584)
   Payment of deferred stock offering costs                            	 0  	     (5,726)
                                                                ----------    ----------
          Net cash provided by (used in) financing activities   	 (113,102) 	   (122,612)
                                                                ----------    ----------

Increase (decrease) in cash and cash equivalents                 	 289,216  	     31,066

Cash and cash equivalents at beginning of period                 	 362,179 	     163,587
                                                                ----------    ----------

Cash and cash equivalents at end of period                     	$  651,395 	     194,653
                                                                ==========    ==========


Supplemental cash flow information:
  Cash paid during the period for interest  
     (net of amount capitalized)                                  	239,310 	     294,869

Supplemental disclosure of non-cash investing and 
 financing activities:
  Capital lease obligations incurred for property 
     and equipment 	                                                     0	        5,433  
  Short-term notes payable and long-term debt incurred 
     for fixed assets                                                   	0 	      20,804  
  Accrual of dividends on Series B preferred stock                      	0  	    108,665

See accompanying notes to condensed financial statements.

                                          3
</TABLE>
<PAGE>
                 INTERNATIONAL TOURIST ENTERTAINMENT CORPORATION

                    Notes to Condensed Financial Statements
                                December 31, 1996
                                    (Unaudited)

NOTE 1.  BASIS OF PRESENTATION 

International Tourist Entertainment Corporation (the "Company")  commenced 
operations in October 1993.  The accompanying interim condensed financial 
statements are unaudited, but in the opinion of management reflect all 
adjustments (consisting of normal recurring accruals) necessary for a fair 
presentation of the results for such periods.  The results of operations for 
any interim period are not necessarily indicative of results for the 
respective full year.  These condensed financial statements should be read in 
conjunction with the financial statements  and notes thereto contained in the 
Company's annual report of form 10-KSB for the year ended June 30, 1996 as 
filed with the Securities and Exchange Commission.


NOTE 2.  BANKRUPTCY FILING AND PLAN OF REORGANIZATION

On January 25, 1996, the Company filed a voluntary petition for relief under 
Chapter 11 of the United States Bankruptcy Code, Case No. 96-60122-S-11 
(Chapter 11), with the United States Bankruptcy Court, Western District of 
Missouri, Southern Division.  On December 18, 1996, the Company filed its 
Second Amended Plan of Reorganization Dated December 18, 1996 (the "Plan of 
Reorganization") and its Second Amended Disclosure Statement in Support of 
Proposed Debtor's Second Amended Plan of Reorganization Dated December 18, 
1996 (the "Disclosure Statement") with the United States Bankruptcy Court.  On 
February 6, 1997, an Order Confirming the Plan of Reorganization was entered 
by the United States Bankruptcy Court in the matter of In Re: International 
Tourist Entertainment Corporation, Debtor and Debtor-in-Possession.  

The Plan of Reorganization provides for the reorganization of the Company.  
The terms of the reorganization provide for (i) the payment in full of 
priority, administrative and tax claims, (ii) the modification of the 
Boatmen's Bank secured claim, (iii) settlement of the Bank of Nova Scotia 
secured claim by delivery of the St. Thomas, U.S. Virgin Islands property of 
the Company to the Bank of Nova Scotia, (iv) the performance of the Great 
Southern mortgage obligation on a condominium owned by the Company in 
accordance with its terms, (v) debentureholders may elect to receive cash in 
the amount of 12 1/2% of their claims and one-half share of the common stock 
of the Company for each $10.00 of their claim; or cash in the amount of 10% 
of their claims and one and one-half shares of the common stock of the 
Company for each $10.00 of their claim, (vi) creditors with Allowed Unsecured 
Claims may elect to receive cash in the amount of 12 1/2% of their Allowed 
Unsecured Claims; or cash in the amount of 10% of their Allowed Unsecured 
Claims and 


                                      4
<PAGE>
one share of the common stock of the Company for each $10.00 in debt, (vii) 
preferred shareholders will receive .8 shares of the common stock of the 
Company for each share of preferred stock held by them, rounded to the 
nearest whole share, and (viii) common shareholders will receive 1 share of 
the common stock of the Company for each 10 shares of common stock held by 
them pre-petition, rounded to the nearest whole share.

The Plan of Reorganization is to be capitalized with a $1.2 million investment 
of additional cash.  The first installment of $600,000 was delivered to the 
Company on or about February 24, 1997 by Mr. Paul M. Bluto for which he 
received approximately 4,433,490 shares of the common stock of the Company.  
The second installment of $600,000 will be provided to the Company from 
proceeds of a private placement of the Company's common stock on or before 
September 10, 1997.  Mr. Paul M. Bluto has agreed that at the conclusion of 
the offering period he will purchase unsold Units in such amount that the 
total proceeds of the offering to the Company will be at least $600,000.  
Investors in this private placement will receive up to 2,166,667 shares of the 
common stock of the Company and warrants to purchase up to 2,166,667 shares of 
the common stock of the Company.  The financial statements at December 31, 
1996 do not reflect the proposed bankruptcy plan as the plan was filed in 
February, 1997.


NOTE 3.  NET INCOME OR LOSS PER SHARE

For all periods presented, the Company's income or loss per share is based 
on the weighted average number of common shares outstanding.  Common share 
equivalents resulting from options or warrants outstanding during the 
periods have not been included as they are antidilutive.

  
                                    5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

ITEC Attractions (the trade name of the Company) began operations with the 
opening of its giant screen theater and mall facility in Branson, Missouri 
in October, 1993.  This facility is known as the OZARKS DISCOVERY IMAX 
THEATER AND MALL.  It contains a 532 seat IMAX theater with a screen that 
is 62 feet tall and 83 feet wide.  In addition, the facility includes an 
enclosed shopping mall with approximately 22,000 square feet of leased 
retail space.  MCFARLAIN'S, a family restaurant in the mall, has been owned 
and operated by the Company since May 1, 1995. Seventeen other shops and 
kiosks are currently leased to third parties.  One kiosk in the mall is 
owned and operated by the Company.  

On February 6, 1997 the Company received confirmation of its Plan of 
Reorganization from the U.S. Bankruptcy Court.  The Plan required a 
reorganization of the Company including a capital infusion of $1.2 million, 
of which $600,000 was paid in February, 1997 and $600,000 was paid by 
September 10, 1997.  Investors of the new capital own approximately 80 
percent of the Company's common stock.  Pre-petition shareholders, 
debentureholders/creditors, and management retain approximately 10 percent, 
5 percent and 5 percent of the Company's common stock respectively. 

RESULTS OF OPERATIONS

Revenues for the quarter ended December 31, 1996 increased 21 percent to 
$1,395,384 as compared with $1,149,192 for the same quarter of the previous 
year. Revenues for the six-month period ended December 31, 1996 increased 
17 percent to $2,800,815 as compared to $2,400,280 in the prior year 
period.  During the reporting quarter, the Company generated a 47 percent 
increase in revenues at the Company's McFarlain's restaurant in the mall 
together with a 33 percent increase in rental income and a five percent 
increase in theater revenues.  Concession and retail sales for the 
reporting quarter decreased 24 percent due to the Company having sold its 
Gingerbread Kids Clothing Shop operation in the mall.  Revenues for the 
reporting quarter were comprised of ticket sales (33.9%), restaurant sales 
(50.0%),  concession and retail sales (6.9%) and retail rental income 
(9.1%). 

Costs and expenses were $1,201,292 for the reporting quarter as compared to 
expenses of $1,178,522 in the similar quarter of the previous year.  Costs 
and expenses were $2,357,203 for the six-month period ended December 31, 
1996 compared to $2,422,815 in the prior year period.  Depreciation expense 
decreased $99,757 during the reporting quarter and $199,473 for the six-
month period as a result of the Company's $5.1 million write down of assets 
in the fourth quarter of fiscal 1996 ended June 30, 1996.

Operating income for the reporting quarter was $194,092 as compared to a 
loss of $29,330 in the same quarter of the prior year, while operating 
income for the six-month period totaled $443,586 compared to an operating 
loss of $22,535 in the prior year period. This improvement is primarily due 
to increased revenues as discussed above together with decreased 
depreciation and amortization expenses.
<PAGE>
Interest expense totaled $187,036 for the quarter ended December 31, 1996, 
as compared to $189,652 for the similar period of the prior year.  Interest 
expense for the six month period ended December 31, 1996 totaled $377,449 
as compared to $382,540 in the prior year period.

Net income for the reporting quarter was $14,272 compared to a net loss of 
$269,626 in the same quarter of the previous year.  Net income for the six-
month period was $77,827 as compared to a net loss of $508,207 in the prior 
year period.  This improvement is primarily related to the increase in 
revenues discussed above together with the decrease in 
depreciation/amortization expense.

LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 1996, current assets totaled $906,971 while current 
liabilities totaled $3,284,384.  The Company's current ratio at December 
31, 1996 was .28 to 1.  However, these amounts do not reflect the 
implementation of the Company's Plan of Reorganization.  The Company's Plan 
of Reorganization, which was confirmed on February 6, 1997 by the U.S. 
Bankruptcy Court, relieved the Company of approximately $2.2 million of 
long-term debt and approximately $3.2 of current liabilities related to 
unsecured creditors in the fourth quarter of fiscal 1997.  The Company paid 
approximately $600,000 to satisfy these liabilities. 

On September 10, 1997, the Company completed a private offering solely to 
accredited investors of 2 million Units at a price of $.30 per Unit for an 
aggregate consideration of $600,000.  Each Unit consists of one restricted 
share of common stock of the Company and one warrant to purchase one 
restricted share of common stock of the Company at a price of $1.00 per 
share.  These securities are not registered under the Securities Act of 
1933 and may not be offered or resold absent registration or pursuant to an 
applicable exemption from registration under the Securities Act of 1933.  
No underwriter or selling agent was used in connection with this offer and 
sale. 

Going forward, the Company expects to be able to finance its operations and 
immediate capital requirements from its operations and capital invested 
pursuant to the Plan of Reorganization.


<PAGE>
                  PART II.  OTHER INFORMATION

Item 1.	Legal Proceedings
        -----------------
          
        Except for the bankruptcy filing described above, there are no 
        material legal proceedings pending to which the Company is a 
        party or of which any of its property is the subject.

Item 2.	Changes in Securities	
        ---------------------
          
        Pursuant to the Company's Plan of Reorganization confirmed on 
        February	6, 1997 by the U.S. Bankruptcy Court, shareholders of 
        preferred stock received .8 shares of common stock of the Company 
        for each share of preferred stock held by them pre-petition, 
        rounded to the nearest whole share and shareholders of common 
        stock received 1 share of the common stock of the Company for 
        each	10 shares of common stock held by them pre-petition, 
        rounded to the nearest whole share.

        The Company's loan agreement with Boatmen's Bank of Southern 
        Missouri restricts the payment of dividends to an amount not 
        exceeding the Company's net profits plus depreciation plus 
        interest expense, less 1.25 times the Company's annual 
        principal and interest payments unless otherwise agreed to by 
        Boatmen's Bank of Southern Missouri.

        In February 1997, the Company issued approximately 4,433,490 
        restricted shares of its common stock to Mr. Paul M. Bluto in 
        consideration of $600,000 cash.  No underwriter or selling 
        agent was used in connection with this sale.  The sale of these 
        shares was made pursuant to available exemptions under Section 
        4(2), Section 4(6), and the regulations promulgated pursuant 
        thereto, of the Securities Act of 1933, as amended.

Item 3.	Defaults Upon Senior Securities
        -------------------------------
           
        Not applicable.

Item 4.	Submission of Matters to a Vote of Security Holders
        ---------------------------------------------------
         
        No matters were submitted to a vote of security holders during 
        the quarter ended December 31, 1996.  	During the quarter ended 
        March 31, 1997, shareholders, debentureholders, and creditors 
        voted in favor of the Company's Second Amended Plan of 
       	Reorganization Dated December 18, 1996.
<PAGE>
Item 5.	Other Information
        -----------------    

       	Not applicable.

Item 6.	Exhibits and Reports on Form 8-K
        --------------------------------
          
       	A) Exhibits:
        4.1 Specimen Certificate for the common stock of the Registrant 
        (incorporated by reference to the Registrant's Registration 
        Statement on Form S-1, Registration No. 33-48630).

        10.3	  Ground Lease Agreement dated July 27, 1993 between 
        Treasure Lake R.V. Resort Camping Club, Inc. and International 
        Tourist Entertainment Corporation (incorporated by reference to 
        Registration Statement on Form S-1, Registration No. 33-64132).

        10.4	  Loan Agreement dated July 30, 1993 for loan from 
        Boatmen's Bank, Branson, Missouri to International Tourist 
        Entertainment Corporation (incorporated by reference to 
        Registration Statement on Form S-1, Registration No. 33-64132).

        10.5  	Deed of Trust dated July 30, 1993 for benefit of 
        Boatmen's Bank, Branson, Missouri (incorporated by reference to 
        Registration Statement on Form S-1, Registration No. 33-64132).

        10.10	  Distribution Agreement dated July 14, 1995 between Imax 
        Corporation and the Company (incorporated by reference to Form 
        10-KSB for the year ended June 30, 1996).

        10.11  Second Amended Plan of Reorganization dated December 18, 
        1996 and Second Amended Disclosure Statement in Support of Proposed 
        Second Amended Plan of Reorganization dated December 18, 1996 
        (incorporated by reference to Form 8-K filed on February 26, 
        1997).

        10.12 	Third Modification Agreement dated March 1, 1997 between 
        Boatmen's Bank of Southern Missouri and the Company 
        (incorporated by reference to Form 10-KSB for the year ended 
        June 30, 1996).
 
        10.13  	 System Lease Agreement as amended dated August 1, 1993 
        between IMAX Corporation and the Company (incorporated by 
        reference to Form 10-KSB for the year ended June 30, 1996).
<PAGE> 
        Reports on Form 8-K : 
        -------------------

        On February 19, 1997, the Company filed a report on Form 8-K    
        reporting a change in its certifying accountant. The Company 
        engaged Tanner + Co., Salt Lake City, Utah, to replace KPMG 
        Peat Marwick LLP as the principal accountant to audit the 
        Company's financial statements.  There have been no 
        disagreements between the Company and the former accountant on 
        any matter of accounting principles or practices, financial 
        statement disclosure, or auditing scope or procedure in 
        connection with the audits of the two years ended June 30, 1995 
        or any subsequent period preceding the change described herein.
	
	       On February 26, 1997, the Company filed a report on Form 8-K 
        reporting	a change in control of the Company resulting from 
        the confirmation of the Plan of Reorganization on February 6, 
        1997 and the Company's Bankruptcy proceeding.
     

<PAGE>
                               SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.

                                                                         
	Date     9/30/97                            /s/ Paul M. Bluto	
      ----------------                       -------------------------
                                             Paul M. Bluto
                                           		Chairman and
                                           		Principal Financial Officer
		
                                   

 Date     9/30/97                            /s/ Kelvyn H. Cullimore
      ----------------                       -------------------------
                                             Kelvyn H. Cullimore
                                             President
                                             Chief Executive Officer
                                             Duly Authorized Officer