The Department of Tourism's budget has been cut by eight percent.

An estimated $32.48 million will be spent on tourism this year, down from $35.30 million last year and $42.07 in 2007/08.

Meanwhile Friday's Budget revealed the Department has shed 27 jobs in the past year, from 78 to 51, with a Government spokeswoman confirming these were all as a result of the restructuring of the North American Tourism Office.

No figure on the redundancies has been officially given, but when the shake-up attracted strong criticism last summer, Premier Dr. Ewart Brown's Press Secretary Glenn Jones claimed only eight people faced being laid off.

Mr. Jones' claim was dismissed as spin by New York employees and the Bermuda Public Services Union.

Last year's Music Festival, which included superstars Beyonce and Alicia Keys, cost taxpayers $3 million, and Dr. Brown has previously stated it will be scaled back this year.

At a press conference following Fridays's Budget, the Premier and Tourism Minister said he wanted to be creative in attracting visitors to the Island.

"While out of the box thinking has become a management cliché, I remain steadfast in my commitment to usher in the platinum period in Bermuda Tourism despite the economic times," he said.

"The platinum period combines a first class product with increased visitation.

"Airline partners remain committed to the destination as demonstrated by the recent JetBlue and Delta Air Lines announcements. To this end, strategic planning and effective targeting will combine to yield results in 2009."

Dr. Brown said the launch of the Heritage Wharf cruise complex would enable Bermuda to remain competitive with other cruise destinations, improve infrastructure at Royal Naval Dockyard, and maintain a healthy flow of visitor traffic during the hotel development renaissance period.

"As I've shared previously, but it bears repeating, cruise numbers will increase this year and it is anticipated that Bermuda's cruise product will generate up to $69 million in revenue for the Island in 2009, including Government Passenger and Cabin Tax, on-island expenditures by cruise visitors, crew member expenditures and shore excursions taken by cruise visitors," he said.

"The improvements in the public transportation infrastructure will add value to Bermuda's public transportation experience and reduce the operating costs.

"While there will be belt tightening throughout the Ministry we will step up our efforts to reduce the carnage on our roads. New legislation complemented by messages highlighting cause and effect and the need for personal responsibility will feature heavily in our efforts.

"For the avoidance of doubt, we are committed to the Tourism industry and to providing a first class transportation infrastructure. We have planned wisely."

In her Budget speech, Finance Minister Paula Cox said the Ministry of Tourism and Transport would plough more cash into road safety initiatives and encouraging people to use public transport.