The Premier says retailers must be more flexible and offer niche products if they are to win the business of today's tourists.

Ewart Brown said the retail industry had been "slower than it should have been" to adapt to 21st century shopping such as on-line purchases and longer opening hours.

He was asked at a meeting of Sandys Rotary Club whether he thought the struggling retail sector could be revived on the Island.

Dr. Brown, Tourism Minister, responded: "It used to be that you came to Bermuda to buy linen, crystal and Wedgwood, but now you can buy this on-line.

"I think the retail sector has been slower than it should have been to adjust to that reality."

The Premier said Bermuda could learn much from cruise line operators, who were masters of customer profiling.

"They know their customer, and what they want when they come off the ship. We have to find out what they want," he said.

"This idea that we are Bermuda and the world should come to us those days are over. We have to compete, we have to be proactive, creative and we have to be quick."

Dr. Brown said: "I think people only shop in Bermuda if it's something which they want and if it's a good deal. Can Bermuda sell something that they can't buy somewhere else? If we focus on that we have a chance of stimulating our retail sector."

However, he said he was disappointed at what appeared to be a lack of enthusiasm by retailers to open later in the evenings. He gave an example of a cruise ship which arrived in Dockyard two years ago at 4.30 p.m., an hour-and-a-half late.

Government laid on fast ferries to get the passengers over to Hamilton, but the shops still closed at 5 p.m.

"Unfortunately they (the tourists) got into town at 5.15 p.m.," said the Premier. "In this case you think 'well you don't want the business'."

He said businesses had also given a lukewarm response to an offer by Government to put on more fast ferries at the weekend.

"They just weren't interested," said Dr. Brown. "Some of them just want to be there, and in the hospitality industry, just being there is not enough."

However Philip Barnett, Bermuda Chamber of Commerce president, said some retailers had found it didn't make economic sense to stay open later.

"This cruise ship was two years ago and last year many heeded the Premier's call and did open later, but for many it was a losing proposition. They were doing the same amount of sales but with more expenses," he said.

"The retailers face significant challenges, in that the costs of business are astoundingly high in Bermuda compared to anywhere else in the world. Rents are more expensive, staff are more expensive due to the living costs, and shipping costs are expensive."

Mr. Barnett admitted: "There are some retailers who are struggling mightily at the moment. Yes, things are changing and the Internet gives people a lot more selection, but perhaps Bermuda can become a more specialist retail place."

He said the Chamber of Commerce is currently lobbying Government to drop the duty on 'luxury brand' items.

"The retail division is trying to meet with Government with regards to offering things such as global luxury brands at a duty free price," said Mr. Barnett. "That would be a niche opportunity.

"To be competitive, it would be nice if tourists could have an opportunity to buy a high-end watch or a specific set of crystal or china. There are opportunities for us to become more competitive on a global scale if we can target specific items to sell."

Mr. Barnett said the Chamber of Commerce also backed more fast ferries running later at the weekend.

"There's always been a call to lift people up to both St. George's and Hamilton and to run later than 9.30 or 10 p.m.," he said.

"Anywhere where there's a vibrant area, it's not going to get going until that time, but when you think about a $50 to $60 cab fare to get back to Dockyard, it puts people off.

"I think a lot more tourists would come off the ships if they knew they could get back there at one or two in the morning.

"Retailers, bars, restaurants and the Chamber of Commerce would all like to see more consistent lift later at night," he said.

"I think there needs to be a more concerted effort there."