Spending by tourists arriving by air is dropping according to latest figures.

Yesterday Government released its quarterly bulletin of statistics charting Bermuda's economic performance over the first six months of the year.

They show that the total number of tourists have increased slightly compared to the same time last year, but spending by air arrivals has fallen.

Inflation has stayed steady and the total amount spent by Islanders rose.

The statistics relate to a whole series of sectors within Bermuda including tourism arrivals, employment, the number of new homes built and the number of new companies registering.

Last night Tourism Minister David Dodwell said he was baffled by the decrease in spending although he said he was encouraged by the increase in tourists.

A breakdown of the tourist figures shows that 132,501 people arrived by air in the first six months of this year -- a rise of about 3,000 on the same time in 1995.

However the figure was down on the same period for 1994 and 1993 when 136,224 and 138,743 people arrived by air respectively.

Over the first six months of this year 69,610 people arrived by cruise ships compared to 64,926 last year, 63,929 in 1994 and 59,539 in 1993.

Spending by cruise ship passengers rose compared to the same six months last year by 11.3 percent to $16.7 million.

However spending by air arrivals fell fractionally -- directly reflecting a decline in the amount spent on food and accommodation as more people stayed in cottage colonies and small hotels.

Most benefits come from people arriving by air and a breakdown of the statistics shows a gradual decline in the amount they spend.

In the first six months this year 132,000 air arrivals spent $149 million, in 1995 129,000 people spent $150 million, in 1994 136,000 visitors spent $164 million and in 1993 138,000 people spent $156 million.

Overall, in the first six months of this year 202,000 air and cruise tourists spent $165.7 million compared with 194,444 visitors last year who spent $165.1 million.

Last night Tourism Minister David Dodwell said up-to-date figures showed air arrivals were up 8,000 compared to last year, but he was baffled why people appeared to be spending less.

"I am surprised by the financial aspect, but I do not have an answer at this time. It could be up to the private sector and how they market themselves.'' Earlier this year the `Let Yourself Campaign' was launched and Mr. Dodwell publicly stated he hoped an extra 25,000 tourists would come to Bermuda.

He added: "The increase right now is 8,000. That is encouraging news although it is not the 25,000 increase we wanted and I am not completely happy.

"However you cannot blame marketing for the ills of Bermuda -- and I believe that now more than I have ever believed it.'' Elsewhere in the economy employment within hotels is only recorded up to April this year when 4,063 people had jobs in the industry -- a virtually static number since 1994.

In the jobs markets generally the figures only include the whole of 1995, but show a relatively static situation with a total of 34,133 jobs being held down.

Money pouring into construction in 1995 was about $37 million -- with $24 million coming from the private sector.

In 1994 more than $50 million was pumped into construction projects -- with $20 million coming from private funds -- and in 1993 $49 million was invested, with $31 million coming from private hands.

Sixty-one new homes were added to the total number of houses on the Island, four more than were built in the first six months of 1995.

In other sectors of the economy, the annual rate of inflation stayed steady at 2.5 percent -- the same as the first six months last year.

People on the Island also spent more in the first six months of this year compared with 1995.

Sales were worth $132.4 million -- 3.1 percent more than last year -- with all sectors of the economy benefiting.

At the same time the amount spent on goods abroad over the first six months of this year rose by 8.7 percent over the same time last year to 6.6 million.

Electronic and photographic goods, toys, sports goods, tools, machinery and parts from abroad all showed big increases in spending.

And 256 international companies were registered in Bermuda, 43 more than in the first six months of last year. Forty-six local companies were registered, three more than the first six months of 1995.

David Dodwell