Retailers say they are "apprehensive" about the rising costs of on-street city parking.

Hamilton mayor Sutherland Madeiros announced on Tuesday prices were to almost double, from $1 to $1.75 an hour. He explained the move was to encourage more utilisation of car parks and to free up space for retailers.

"We are trying to make it more expensive to park on the street than in the car park. We think that will assist the merchants and ease congestion," said Mr. Madeiros.

The city's retailers however, are skeptical as to the merits of the voucher increase.

Nicole Warren, general manager of Brown and Co., said: "I do feel the prices are too extreme and may possibly deter people from actually wanting to kerb-park in the city for convenience, as opposed to going to a parking lot and walking down. Customers may be a bit apprehensive about coming into the city to shop for large items.

"Certainly we are apprehensive about it," said Mrs. Warren.

"On top of the increases for parking, the number of parking spaces for private vehicles are decreasing at the same time, due to all the new development. It's becoming very hectic and discouraging. More spaces are being taken as areas need to be blocked off for construction safety reasons. There is just more congestion everywhere.

"We definitely need some alternative measures. You can park at Bulls Head car park, but for the average customer, it's not convenient for them."

Paula Clarke, CEO of Gibbons Company, said: "It could be detrimental for people coming shopping into Hamilton. People like to park on the street so they can put heavy bags or large boxes straight into the car."

Diane Gordon, executive director of the Bermuda Chamber of Commerce, said: "I have spoken to quite a few people today about this increase in charges, and people are running out to buy parking vouchers because they don't want to get the next batch at the higher cost. People are not very happy about it, and want change.

"It's a great thing for the Corporation to say that this will encourage people to go to car parks, but these car parks are full as it is. While I understand what the Mayor is saying, we have to ensure there is more parking available in additional areas. We do not have sufficient spaces."

Mrs. Gordon added: "To some retailers this is also concerning as if people are not able to park on the street, they may not buy as much."

The parking fee increase will become effective with the next delivery of parking voucher books – expected in the next few weeks. However, motorists will be given time to use up their old vouchers before the new ones are phased in.