allocation from the Budget -- as the Ministry was forced to slash $3.3 million and make do with a small overall revenue increase.

Overall, Tourism Minister David Allen's budget rose from $36.79 million last year to $37.56 million for 2001-2002 -- an increase of just $770,000 or two percent.

With Mr. Allen off the Island it was not clear which of the "existing tourism expenditures'' were "trimmed'' to accommodate $4 million of new projects -- although there is a net reduction in operational costs of $1.308 million.

Bermuda Tourism Europe will be hoping it is not in the firing line again, after seeing their budget cut by six figures last year.

Finance Minister Eugene Cox said visitor expenditure in the last financial year was expected to drop by five percent to $455 million, adding that "this less than stellar performance ...was due in part to the closure of several of the Island's visitor accommodations''.

Last year, the number of visitors decreased by seven percent to 543,000 and the number of jobs in the hospitality industry fell by 9.3 percent.

Mr. Cox said several investment proposals for accommodations provided hope of a reversal of the decline but warned that a slowdown in the economies of North America may further deplete tourist numbers this year.

Included in the $4 million of "new funding'' is $612,500 in travel agent incentives -- a cash bonus scheme last year for late season bookings was the most successful ever.

A media support programme for a new "air service strategy'' will cost $1.1 million and a niche marketing programme gets $500,000.

On the Island, the Bermuda Experience Network -- which supports visitor attractions such as nature walks and heritage tours -- gets $150,000.

In addition, $304,000 will go towards overseas appearances by the Bermuda Regiment and local entertainers.

Later this year the Society of American Travel Writers will hold its annual conference in Bermuda, and this event is being sponsored to the tune of $500,000.

Seven new staff have boosted the Department of Tourism's roll to 74. Although no costing is given for the positions there is a salary revision increase of $72,000 for North American staff.

Grants and contributions of $1.203 million go to sports, exhibitions and promotional services.

No extra cash for Tourism Other expenditure in the coming year includes $500,000 for an African American marketing programme, $150,000 additional provision for a food and wine festival, and $80,000 to support membership and attendance at Caribbean Tourism Organisation events.

Tourism revitalisation tours get a net increase of $12,000 and "Compact Travel Agents'' receive $190,000 in incentives.

The re-grading and re-organisation of the tourism department will cost a further $169,000.

Mr. Cox said the new programme funding reinforced the Government's commitment to help tourism reposition itself as a dynamic sector in the global tourism market.

CHART Ministry of Tourism Spending