Cruise ship passengers have poured more than $40 million into the local economy so far this year.

Tourism Minister David Allen made the announcement in the House of Assembly yesterday. He also revealed that he was raising the maximum number of cruise visitors by 21,000.

Mr. Allen said that raising "in a responsible way" the current maximum of 200,000 annual cruise ship visitors to 221,000 will "provide significant relief, a breathing space, until additional hotel beds come on line".

He said the Bermuda Alliance for Tourism (BAT) determined the comfortable carrying load of visitors to Bermuda was 600,000 annually, with 200,000 of those being cruise ship passengers. The target was set to achieve the 200,000 cap by 2003 but that cap was reached two years ago. However, due to the September 11 terrorist attacks in the US, the Ministry projects the cap will not be met this year.

Mr. Allen said that more than $40 million of revenue was attributed directly to the cruise ship industry and that the importance of the industry was just as vital as the air industry .

He said: "Retailers, restaurateurs, craft producers, tour operators, watersport operators, and taxi operators are all direct beneficiaries."

Mr. Allen reminded the House of the additional sixth, weekend, regular weekly cruise ship slot and the cap of approximately 1,500 passengers on any future ships as regular contracts were implemented under the current Government.

He also stated the advantages of "value-added benefits", such as the "Horizon Card", which can bring in as much as $1.9 million annually, and Royal Caribbean's provision of $1 million to a Hospitality Industry Studies Scholarship fund to provide scholarships for young Bermudians.