<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, 1997.

[ ] 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        			    	      66-426648    
--------------------------------            -----------------	
(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    X     No  	 
                              -------     -------
                      	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, $.001 par value as of February 11, 1998 is 7,854,680 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, 1997 	                                      1


Condensed Statements of Operations
   Three and Six Months Ended December 31, 1997
   And December 31, 1996	                                    2


Condensed Statements of Cash Flows 
   Six Months Ended December 31, 1997
   And December 31, 1996 	                                   3


Notes to Condensed Financial Statements 	                    4


Item 2.  Management's Discussion and Analysis
    or Plan of Operation	                                    5


Part II.   OTHER INFORMATION	                                6
<PAGE>

          INTERNATIONAL TOURIST ENTERTAINMENT CORPORATION

                     Condensed Balance Sheet
                           (Unaudited)

<TABLE>
<CAPTION>
                                                                                 December 31
                  ASSETS                                                             1997
                                                                                 ------------
 
<S>                                                                              <C>            
Current assets:
   Cash and cash equivalents                                                     $   986,026
   Receivables                                                                        68,559
   Inventories                                                                        64,138
   Prepaid  expenses                                                                  16,821
   Current portion of prepaid leases                                                 166,915
                                                                                 -----------
         Total current assets                                                      1,302,459

Property and equipment, net                                                        5,547,206
Prepaid leases                                                                     1,299,018
Deposits                                                                              12,276
                                                                                 -----------

                                                                                 $ 8,160,959
                                                                                 ===========

         LIABILITIES AND STOCKHOLDERS'  EQUITY

Current liabilities:
   Accounts payable                                                              $    25,939
   Accrued expenses                                                                  273,329
   Current portion of long-term debt                                                 125,658
                                                                                 -----------
         Total current liabilities                                                   424,926

Accrued lease expense                                                                253,566
Long-term debt                                                                     3,608,302
Security deposits                                                                     19,000
                                                                                 -----------
         Total liabilities                                                         4,305,794

Stockholders' equity
   Common stock, $.001 par value.  Authorized 40,000,000                               7,855
      shares, issued and outstanding 7,854,680 shares as of
      December 31, 1997
   Additional paid-in capital                                                     10,781,158
   Accumulated deficit                                                            (6,933,848)
                                                                                 -----------
         Total stockholders' equity                                                3,855,165
                                                                                 -----------
                                                                                 $ 8,160,959
                                                                                 ===========
</TABLE>
See accompanying notes to condensed financial statements.
                                     1


<PAGE>
               INTERNATIONAL TOURIST ENTERTAINMENT CORPORATION

                       Condensed Statements of Operations
                                 (Unaudited)

[CAPTION]
<TABLE>
                                                      Three Months Ended             Six Months Ended
                                                         December 31                    December 31
                                                     1997          1996             1997           1996
                                                  ----------    -----------      -----------    -----------
<S>                                              <C>            <C>              <C>            <C>
Revenue:
 Theater admissions                               $   552,579       473,641        1,189,672      1,108,639
 Restaurant                                           870,277       698,269        1,595,582      1,270,824
 Concession and retail sales                          311,305        95,857          551,206        187,031
 Retail rental income                                 139,992       127,616          251,470        234,321
                                                  -----------    ----------      -----------    -----------
                                                    1,874,153     1,395,384        3,587,930      2,800,815
Costs and expenses:
 Direct exhibition expenses                            74,831        35,204          158,420        107,518
 Direct restaurant                                    239,574       205,104          454,036        370,606
 Direct concession and retail costs                   121,206        50,085          235,361        100,191
 Other operating expenses                             137,779       127,633          279,364        258,336
 Selling, general and administrative expenses:
  Salaries and wages                                  515,628       395,844          963,252        732,859
  Advertising                                          97,270        74,730          185,541        165,371
  Depreciation and amortization                       101,119        82,793          201,129        164,355
  Occupancy                                            77,236        69,301          176,191        151,127
  Other                                               229,758       160,597          441,591        306,866
                                                 ------------    ----------      -----------    -----------
                                                    1,594,401     1,201,292        3,094,885      2,357,230
                                                 ------------    ----------      -----------    -----------
  Operating income                                    279,752       194,092          493,045        443,586
Other income (expense):

Interest income                                        12,139         7,216           19,054         11,190
 Gain on sale of fixed assets                               0             0                0            500
 Interest expense                                     (84,254)     (187,036)        (169,719)      (377,449)
                                                 ------------    ----------      -----------    -----------
  Other income (expense), net                         (72,115)     (179,820)        (150,665)      (365,759)
                                                 ------------    ----------      -----------    -----------

  Net income                                     $    207,637        14,272          342,380         77,827
                                                 ============    ==========      ===========    ===========

Earnings Per Share - Basic                       $       0.03          0.00             0.05           0.01
                                                 ============    ==========      ===========    ===========

Earnings Per Share - Diluted                     $       0.03          0.00             0.05           0.01
                                                 ============    ==========      ===========    ===========

Weighted average number of common shares            7,854,680     6,359,985        7,581,106      6,359,985

</TABLE>
See accompanying notes to condensed financial statements.



<PAGE>
                             INTERNATIONAL TOURIST ENTERTAINMENT CORPORATION

                                   Condensed Statements of Cash Flows
                                               (Unaudited)
[CAPTION]
<TABLE>
                                                                                                 Six Months Ended
                                                                                                    December 31
                                                                                             1997              1996
                                                                                         -------------     -------------
<S>                                                                                      <C>               <C>
Cash flows from operating activities:
   Net income/(loss)                                                                     $     342,380            77,827
   Adjustments to reconcile net loss to net cash provided
     by (used in) operating activities:
      Depreciation and amortization                                                            201,129           164,355
      Changes in operating assets and liabilities:
        Decrease (increase) in receivables and notes receivable-tenants                        (32,414)            8,622
        Decrease (increase) in inventories                                                      (4,199)           11,656
        Decrease (increase) in deposits and prepaid expenses                                    (7,012)           18,349
        Decrease (increase) in prepaid leases                                                   83,457            83,457
        Increase (decrease) in accounts payable and other accrued expenses                     (42,846)           57,665
        Increase (decrease) in other operating liabilities                                      (3,000)                0
                                                                                         -------------     -------------
                         Net cash provided by (used in) operating activities                   537,495           421,931
                                                                                         -------------     -------------

Cash flows from investing activities-
   Capital expenditures                                                                        (99,506)          (19,613)

Cash flows from financing activities:
   Principal payments under capital lease obligations                                           (6,705)          (13,939)
   Principal payments on long-term debt                                                        (55,783)          (99,163)
   Proceeds from issuance of common stock                                                      349,751                 0
                                                                                         -------------     -------------
                        Net cash provided by (used in) financing activities                    287,263          (113,102)
                                                                                         -------------     -------------

Increase (decrease) in cash and cash equivalents                                               725,252           289,216

Cash and cash equivalents at beginning of period                                               260,774           362,179
                                                                                         -------------     -------------

Cash and cash equivalents at end of period                                               $     986,026           651,395
                                                                                         =============     =============


Supplemental cash flow information:
  Cash paid during the period for interest  (net of amount capitalized)                        168,162           239,310
  Cash paid during the period for taxes                                                              0                 0
</TABLE>
See accompanying notes to condensed financial statements.


                                                   3

<PAGE>
          INTERNATIONAL TOURIST ENTERTAINMENT CORPORATION

              Notes to Condensed Financial Statements
                          December 31, 1997
                              (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, 1997 as filed with the Securities and 
Exchange Commission.



NOTE 2.  NET INCOME OR LOSS PER SHARE

In February 1997, the Financial Accounting Standards Board 
issued Statement of Financial Accounting Standards No. 128, 
Earnings per Share (SFAS 128).  SFAS 128 became effective for 
financial statements with interim and annual periods ending 
after December 15, 1997.  Accordingly, the Company has adopted 
SFAS 128 for the quarter ended December 31, 1997.

SFAS 128 establishes a different method of computing earnings 
(loss) per share than was required under the provisions of 
Accounting Principles Board Opinion No. 15.  Under SFAS 128, 
entities with publicly held common stock are required to 
present basic earnings (loss) per share and diluted earnings 
(loss) per share.  Basic earnings per share is the amount of 
earnings (loss) for the period available to each share of 
common stock outstanding during the reporting period.  Diluted 
earnings per share is the amount of earnings (loss) for the 
period available to each share of common stock outstanding 
during the reporting period and to each share that would have 
been outstanding assuming the issuance of common shares 
outstanding during the period.  

Prior periods have been restated for presentation in 
accordance with SFAS 128.  


                            4
<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 retail space, all of which is leased.  
MCFARLAIN'S, a family restaurant in the mall, has been owned 
and operated by the Company since May 1, 1995.  During the 
quarter ended March 31, 1997, the Company acquired assets to 
begin the operation of McFarlain's Back Porch, an express deli 
and bakery in the mall. Seventeen other shops and kiosks are 
currently leased to third parties.  One kiosk in the mall is 
owned and operated by the Company.  In December 1997, the 
Company installed a new 35mm projection system, in addition to 
its IMAX giant screen projection system, and began showing 
first-run feature films as the shows each evening.  The 
response has exceeded management's expectations with the 
theater attracting sell-out crowds during the Christmas 
season.

The Company is currently constructing a 220 seat theater for 
live performances in its Branson complex.  The Mike Radford - 
Remember When Theater show will perform in the theater, which 
is expected to open March 15, 1998.

RESULTS OF OPERATIONS

Revenues for the quarter ended December 31, 1997 increased 34 
percent to a record $1,874,153 as compared to $1,395,384 for 
the same quarter of the previous year. Revenues for the six-
month period ended December 31, 1997 increased 28 percent to a 
record $3,587,930 compared to $2,800,815 in the prior year 
period.  The Company reported revenue increases in every 
segment of its operation, with the largest increases coming 
from the McFarlain's restaurant operation and from ticket 
sales due to the addition of the 35mm feature films.  Revenues 
also increased due to the addition of the McFarlain's Back 
Porch deli and bakery operation in the mall. 

Costs and expenses were $1,594,401 for the reporting quarter 
ended December 31, 1997, representing 85 percent of sales, as 
compared to expenses of $1,201,292, or 86 percent of sales, 
for the comparable period of the previous year.  Costs and 
expenses for the six-month period ended December 31, 1997 were 
$3,094,885 compared to $2,357,230 in the prior year period.  
Costs and expenses were up primarily due to the increased 
level of business generated at the McFarlain's Restaurant, the 
addition of the McFarlain's Back Porch deli and bakery 
operation discussed above and increased selling, general and 
administrative expenses. 
<PAGE>
Operating income for the reporting quarter increased 44 
percent to $279,752 as compared to $194,092 in the same 
quarter of the prior year.  Operating income for the six-month 
period ended December 31, 1997 increased 11 percent to 
$493,045 compared to $443,586 in the previous year. 

Interest expense decreased to $84,254 for the quarter and 
$169,719 for the six-month period ended December 31, 1997 as 
compared to $187,036 and $377,449 respectively in the 
comparable periods of the prior year due to the implementation 
of the Company's Plan of Reorganization which relieved the 
Company of approximately $2.2 million of long-term debt. 

Net income in the reporting quarter increased to a record 
$207,637 compared to net income of $14,272 in the same quarter 
of the previous year.  Net income for the six-month period 
jumped to $342,380, up from $77,827 in the prior year period.  
These improvements are related primarily to the increase in 
revenues and the decrease in interest expense during the 
reporting periods.


LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 1997 current assets totaled $1,279,019 
while current liabilities totaled $401,486.  The Company's 
current ratio at December 31, 1997 was 3.2 to 1.

During the quarter ended September 30, 1997 the Company 
completed a private placement offering to accredited investors 
of approximately 2 million Units at a price of $.30 per Unit 
for an aggregate consideration of $600,000.  Each Unit 
consisted 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.  No 
underwriter or selling agent was used in connection with this 
offering. 

Going forward, the Company expects to be able to finance its 
operations and immediate capital requirements from its 
operations and currently available capital.

              PART II.  OTHER INFORMATION

Item 1.	Legal Proceedings
        -----------------
          
        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	
        ---------------------
          
       	On September 10, 1997, the Company completed a 
        private placement to accredited investors wherein it 
        issued 2,000,000 units, each unit consisting of one 
        share of restricted common stock and one warrant to 
        purchase one share of restricted common stock in 
<PAGE>
        consideration of $600,000 cash.  No underwriter or  
        selling agent was used in connection with this sale 
        of securities which 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
        ---------------------------------------------------
          
        Not applicable.

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 secured by 
        Deed of Trust 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 
<PAGE>
        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).

        B)  Reports on Form 8-K : 
            -------------------

       	On February 2, 1998, the Company filed a Report on 
        Form 8-K reporting a change in its fiscal year end 
        to December 31.  A transitional Report for the 
        period ending December 31, 1998 will be filed on 
        Form 10-KSB.

<PAGE>     


                           SIGNATURES



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


Date     2/16/98                   	/s/ Paul M. Bluto		 															
      --------------                -----------------------------
                                  		Paul M. Bluto
                                  		Chairman and
                                  		Principal Financial Officer


Date     2/16/98                   	/s/ Kelvyn H. Cullimore		
      --------------                -----------------------------
                                 			Kelvyn H. Cullimore
                               					President
                                   	Chief Executive Officer
                                   	Duly Authorized Officer



                                   9
<PAGE>