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 June 30, 1999.

[ ]  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.)


          3562 Shepherd of the Hills Expressway Branson, Missouri 65616
          -------------------------------------------------------------
                    (Address of principal executive offices)

                                 (417) 335-3533
                                 --------------
                           (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. 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 June 30, 1999 is 7,937,638 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
   June 30, 1999 .......................................................1


Condensed Statements of Operations
   Three and Six Months Ended June 30, 1999
   and June 30, 1998....................................................2


Condensed Statements of Cash Flows
   Six Months Ended June 30, 1999
   and June 30, 1998 ...................................................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>
<TABLE>
<CAPTION>


                 INTERNATIONAL TOURIST ENTERTAINMENT CORPORATION

                             Condensed Balance Sheet
                                   (Unaudited)


                                                                    June 30,           June 30,
               ASSETS                                                1999               1998
                                                                  ------------        -----------

<S>                                                             <C>                 <C>
Current assets:
    Cash and cash equivalents                                   $      202,009       $    350,793
    Receivables                                                         86,872             37,611
    Inventories                                                        143,698             77,705
    Prepaid expenses                                                    74,573             22,947
    Prepaid leases-current                                             166,915            166,915
                                                                --------------      -------------

          Total current assets                                         674,067            655,971


    Property and equipment, net                                      5,830,955          5,868,192
    Prepaid leases-non current                                       1,048,646          1,215,560
    Deposits                                                            14,654             24,503
                                                                --------------      -------------


          TOTAL ASSETS                                          $    7,568,322      $   7,764,226
                                                                ==============      =============

               LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
    Accounts payable                                            $      355,811            202,225
    Accrued expenses                                                   293,516            323,940
    Current portion of long-term debt                                  136,826            121,380
                                                                --------------      -------------

          Total current liabilities                                    786,153            647,545

    Accrued lease expense                                              338,087            281,739
    Long-term debt                                                   3,425,184          3,554,182
    Security deposits                                                   20,441             20,500
                                                                --------------      -------------

          Total liabilities                                          4,569,865          4,503,966

Stockholders' equity
    Common stock, $.001 par value.  Authorized 40,000,000
      shares, issued and outstanding 7,937,638 shares as of
      June 30, 1999                                                      7,938              7,938
    Additional paid-in capital                                      10,781,076         10,781,076
    Accumulated deficit                                             (7,790,557)        (7,528,754)
                                                                --------------      -------------

          Net stockholders' equity                                   2,998,457          3,260,260
                                                                --------------      -------------

          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY            $    7,568,322      $   7,764,226
                                                                ==============      =============
</TABLE>

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
                                                                 June 30                                June 30

                                                         1999              1998                 1999              1998
                                                     ------------       ------------        ------------      -------------

<S>                                                  <C>                <C>                 <C>               <C>
Revenue:
    Theater and concession                           $    723,948            690,043        $    972,663            985,959
    Restaurant and deli                                   813,170            810,686           1,001,652          1,016,058
    Gift shop                                             144,168             97,291             188,005            125,338
    Mall operation                                        109,475             97,836             206,766            175,439
                                                     ------------       ------------        ------------      -------------
                                                        1,790,761          1,695,856           2,369,086          2,302,794
                                                     ------------       ------------        ------------      -------------

Direct Expense:
    Theater and concession                                307,666            339,143             501,057            599,448
    Restaurant and deli                                   620,411            659,370             848,385            934,140
    Gift shop                                             109,423             69,097             144,956             98,436
    Mall operations                                        97,933            108,040             176,795            149,916
                                                     ------------       ------------        ------------      -------------
                                                        1,135,433          1,175,650           1,671,193          1,781,940
                                                     ------------       ------------        ------------      -------------

                                                     ------------       ------------        ------------      -------------
Gross Profit                                              655,328            520,206             697,893            520,854
                                                     ------------       ------------        ------------      -------------

    General and administrative                            170,776            179,383             376,587            461,040
    Advertising and marketing                             211,308            156,601             399,900            287,420
    Depreciation and amortization                         114,516            100,008             225,872            206,320
                                                     ------------       ------------        ------------      -------------
                                                          496,600            435,992           1,002,359            954,780
                                                     ------------       ------------        ------------      -------------

Operating Income                                          158,728             84,214            (304,466)          (433,926)

Other income (expense):
    Interest income                                         1,198             2,636                4,593             9,867
    Interest expense                                      (78,508)          (86,424)            (160,609)         (170,846)
                                                     ------------       ------------        ------------      -------------
           Other income (expense), net                    (77,310)          (83,788)            (156,016)         (160,979)
                                                     ------------       ------------        ------------      -------------

Income before provision for income taxes             $     81,418                426        $   (460,482)          (594,905)

          Net loss                                         81,418                426            (460,482)          (594,905)
                                                     ============       ============        ============      =============

Net income (loss) per common share-basic and diluted $        .01                .00        $       (.06)              (.07)
                                                     ============       ============        ============      =============

Weighted average common
    shares outstanding-basic and diluted                7,937,638          7,937,638           7,937,638          7,937,638

</TABLE>


See accompanying notes to condensed financial statements.

                                        2

<PAGE>

                 INTERNATIONAL TOURIST ENTERTAINMENT CORPORATION

                       Condensed Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>


                                                                                               Six Months Ended
                                                                                                   June 30
                                                                                         1999                  1998
                                                                                    --------------         -------------
<S>                                                                                 <C>                    <C>

Cash flows from operating activities:
   Net loss                                                                         $     (460,482)        $    (594,905)
   Adjustments to reconcile net loss to net cash
     used in operating activities:
      Depreciation and amortization                                                        225,872               206,053
      Changes in operating assets and liabilities:
        Decrease (increase) in receivables and notes receivable-tenants                    (71,882)               30,948
        (Increase) in inventories                                                          (64,890)              (13,567)
        Decrease (increase) in deposits and prepaid expenses                               (37,336)              (18,353)
        Decrease in prepaid leases                                                          83,458                83,458
        Increase (decrease) in accounts payable and other accrued expenses                  90,694               238,842
        Increase (decrease) in other operating liabilities                                     (59)                1,500
                                                                                    --------------         -------------
                         Net cash provided by (used in) operating activities              (234,625)              (66,024)
                                                                                    --------------         -------------

Cash flows used in investing activities:
   Capital expenditures                                                                   (161,719)             (527,039)
                                                                                    --------------         -------------
                         Net cash used in investing activities                            (161,719)             (527,039)
                                                                                    --------------         -------------

Cash flows from financing activities:
   Capitalized lease obligations                                                            26,956                (2,084)
   Principal payments under capital lease obligations and long-term debt                   (83,363)              (40,086)
                                                                                    --------------         -------------
                        Net cash used in financing activities                              (56,407)              (42,170)
                                                                                    --------------         -------------

Decrease in cash and cash equivalents                                                     (452,751)             (635,233)

Cash and cash equivalents at beginning of period                                           654,760               986,026
                                                                                    --------------         -------------

Cash and cash equivalents at end of period                                          $      202,009         $     350,793
                                                                                    ==============         =============


Supplemental cash flow information:
  Cash paid during the period for interest                                          $      160,609         $     170,846


</TABLE>


See accompanying notes to condensed financial statements.


                                        3




<PAGE>



                 INTERNATIONAL TOURIST ENTERTAINMENT CORPORATION

                     Notes to Condensed Financial Statements
                                  June 30, 1999
                                   (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,  1998 and for the  transition
period  ending  December  31,  1998 as filed with the  Securities  and  Exchange
Commission.



<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 IMAX  Entertainment  Complex.  The
Complex  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.  McFarlain's,  a  family
restaurant  which is 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 which is also located in the mall.  In 1994,  the Company  began  selling
gift items  related to the films  which were being  exhibited  in the theater or
which are  representative  of the lifestyle of the Ozark's.  This  operation has
evolved into the Legacy & Legends Gift Shop, which has been one of the Company's
most  profitable  and fastest  growing  departments.  Seventeen  other shops and
kiosks are currently  leased to third  parties.  In December  1997,  the Company
installed a new 35mm  projection  system,  in addition to its IMAX giant  screen
projection system, and began showing feature 35mm films each evening in addition
to the IMAX giant screen film presentations.

In March 1998, the Company  completed the construction of a 210 seat theater for
live performances in its Branson complex.  Mike Radford's Remember When Show and
Jimmie Rodgers Remembers perform daily in this theater.

During the quarter ending September 30, 1998, the Company  completed an addition
to the McFarlain's  restaurant that increased seating by 133 people. This is the
second major  expansion of the  restaurant  during the last two and a half years
and brings the total seating to over 655 people.

RESULTS OF OPERATIONS

Revenues for the quarter  ended June 30, 1999  increased 6 percent to $1,790,761
as compared to $1,695,856  for the same quarter of the previous  year.  Revenues
for the six-month  period ended June 30, 1999  increased 3 percent to $2,369,086
compared to $2,302,794 in the prior year period.  The Company  reported  revenue
increases in every segment of its operation  during the reporting  period,  with
the largest increases coming in the Gift Shop.

Direct operating  expenses were $1,135,433 for the reporting  quarter ended June
30, 1999 representing 63 percent of sales, as compared to expenses of $1,175,650
or 69 percent of sales, for the comparable  period of the previous year.  Direct
operating  expenses  were  $1,671,193  for the six months  ended June 30,  1999,
representing  71 percent of sales,  as compared to expenses of  $1,781,940 or 77
percent of sales, for the comparable  period of the previous year. The reduction
in direct  operating  expense as a percentage of revenue for the three month and
six  month  periods,  is a  result  of an  expense  reduction  program  that was
implemented in early 1999.

<PAGE>

General and administrative  expenses were $170,776 and advertising and marketing
were  $211,308  for the three months ended June 30, 1999 as compared to $179,383
and $156,601 respectively for the same period in 1998.

The  increase  in  advertising  and  marketing  expense  is a result  of a total
remaking of all advertising material,  an increase in advertising programs,  and
the additional expenses related to the marketing of the Jimmie Rodgers show.

Interest  expense was $78,508 and $86,424 for the  quarters  ended June 30, 1999
and 1998  respectively  and was  $160,609 for the six months ended June 30, 1999
and $170,846 for same period ended 1998.

The net income was $81,418  for the  reporting  period  compared to $426 for the
same period of the previous year. The net loss was ($460,482) for the six months
ended June 30, 1999  compared to  ($594,905)  for the six months  ended June 30,
1998.  The  fluctuation  between  quarters  reflects the seasonal  nature of the
Company's business.


LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 1999, current assets totaled $674,067,  while current liabilities
totaled $786,153. The Company's current ratio at June 30, 1999 was .86 to 1.

The Company maintains a $200,000 line of credit facility with a commercial bank.
No borrowings  were made under the line of credit during the reporting  quarter.
This  credit  facility  is  secured  by a second  deed of  trust on the  theater
complex.

Going  forward,  the Company  expects to be able to finance its  operations  and
immediate capital requirements from currently available capital,  cash flow from
operations, and available sources of borrowings including the line of credit.

The Company is in the process of ensuring that its internal computer systems are
Year  2000  compliant.  The  Company  does not  expect  any  material  Year 2000
compliance issues to arise related to its primary internal business  information
systems.  With respect to third-party  providers  whose services are critical to
the Company,  the Company intends to monitor the efforts of such  providers,  as
they become Year 2000  compliant.  Management is presently not aware of any Year
2000 issues that have been  encountered by any such  third-party  providers that
could materially affect the Company's operations. Notwithstanding the foregoing,
there can be no  assurance  that the  Company  will not  experience  operational
difficulties  as a result of Year 2000 issues,  whether  arising out of internal
operations,  or caused by third-party  service providers,  which individually or
collectively could have an adverse impact on business  operations or require the
Company to incur unanticipated expenses to remedy such problems.



<PAGE>


                           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
                  ---------------------

                  The Board of  Directors  of the  Company,  at a meeting of the
                  Board of Directors on October 30, 1998,  approved an extension
                  of  the  Exercise   Deadline  for  the   Company's   currently
                  outstanding warrants from December 31, 1998 until December 31,
                  2000.  The  warrants  were  issued  subject  to the  terms and
                  conditions of a Warrant Agreement dated February 28, 1997, and
                  all other terms of the  warrants,  except for the extension of
                  the Exercise deadline, remain unchanged.

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 Dead of
                  Trust for loan from  NationsBank  (formerly  Boatmen's  Bank),
                  Branson,   Missouri  to  International  Tourist  Entertainment
                  Corporation   (incorporated   by  reference  to   Registration
                  Statement on Form S-1, Registration No. 33-64132).

<PAGE>

                  10.5  Deed of  Trust  dated  July  30,  1993  for  benefit  of
                  NationsBank,  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
                  NationsBank 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).

                  27.1  Financial  Data Schedule for the 3 months ended June 30,
                  1999.

B)       Reports on Form 8-K :

                  No  reports  on Form  8-K  were  filed  during  the  reporting
                  quarter.




<PAGE>



                                   SIGNATURES



In accordance with 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 8/13/99                            /s/ Paul M. Bluto
     -------                            -----------------
                                        Paul M. Bluto
                                        Chairman and
                                        Principal Financial Officer
                                        Chief Executive Officer



Date 8/13/99                            /s/ Paul E. Rasmussen
     -------                            ---------------------
                                        Paul E. Rasmussen
                                        President
                                        Chief Operating Officer