Bermuda's retailers will have to learn to change and adapt if the tourists do not come back to the Island this year, according to George Grundmuller, head of the visitor retail division of the Chamber of Commerce.

Speaking six months after the effects of the terrorist attacks in the United States on September 11 rippled across the Atlantic and hit the Island's shores, Mr. Grundmuller added that Bermuda might have too many shops to be supported by just the local market.

When asked what stores would have to do if the 100,000 tourists that the Island was down in 2001 from 2000 visitor arrival figures did not return, Mr. Grundmuller said: "They will have to look at their own business plan and see if they can address a different market, see if they are too heavily in that place or to invested in the other.

"These are the kinds of decisions a business has to make. You are going to have to forecast and judge future events and adjust the plan accordingly."

Mr. Grundmuller admitted that the effects of September 11 had hit the Island hard, but also came after Bermuda and the United States had seen tough times during the whole year.

But he said now Bermuda could benefit from the fact that travel from the United States had picked up, which would help the plight of the retailers.

He said: "September 11 has impacted the retailers significantly because of the fewer arrivals on the Island, but on the other hand, it is like other things, time cures lots of things. It seems like travel is picking up again and we are hopeful that Bermuda will benefit from it, but it did have significant affects in the months thereafter. But as more time passes it lessens."

And he said that in part September 11 had been blamed for all the ills some companies faced during last year, but many had already faced a challenging year before this date.

He said: "I have not come across a company yet who did not mention Sept. 11, but there were a number of companies in the United States that were not doing so well before this date and Bermuda had its woes well before then too.

"The season didn't start well last year and it didn't really come into gear."

He added: "What really happened with September 11 was it effectively ended the tourist season on that day and cut it short by nine weeks.

"I think long term in Bermuda, retail will face significant challenges. I think a lot of the retail space available right now was built in the hey-day of tourism in the 1980 and I think to some degree we are over-retailed for a population of just over 60,000. You would not find a city or town with 60,000 people anywhere and find that diversity of shops in the United States."

And when asked about the plight of Dockyard, which has been one of the hardest hit by the lack of tourists because it has very little passing local trade, he said that despite their woes, the retailers were optimistic.

He said: "The smaller businesses are privately owned and basically become a one-man operation with the owner. With the larger businesses it is no secret that those people are losing money out there.

"The other ones, like many retailers are, are optimists by nature. You hope for another better year and you hope that it gets better."