The number of international companies in Bermuda has increased by nearly ten percent and overall they have generated more than $1 billion locally, according to latest government figures.

The revelation was made in the Archer Report 1998, an annual compilation of data on international companies in Bermuda, published yesterday.

According to the report, compiled by Dr. Brian Archer for the Ministry of Finance, there were 10,938 international companies registered in Bermuda at the end of 1998, an increase of 969 companies registering in one year.

"These figures show the continuing growth of international business in Bermuda, albeit at a slower pace than in recent years,'' said economist Dr.

Archer.

"This sector provides growing benefits to the Bermudian economy in terms of jobs for Bermudians, profits for local business, business visitors supporting our tourism industry and Government revenue.

"I am particularly encouraged to see companies that maintain a physical presence in Bermuda are continuing to prosper and expand.'' The international companies spent a total of $759 million last year in the Island, an increase of 2.2 percent on last year.

Of this total, $354.4 million was spent on wages and salaries in Bermuda and a further $193.3 million was paid as professional fees or bank fees to Bermudian companies.

The relatively modest growth in expenditures is a result of a decrease in reported capital expenditures from $55.5 million during 1997 to $36.9 million during 1998. In excess of 20,000 business travellers, accompanied by approximately 12,000 friends and relatives, visited the international companies in 1998. They contributed a further $24 million in expenditure to the Bermudian economy. Dr Archer said he sees business travellers as an important component of Bermuda's tourism industry.

There were 355 international companies with a physical presence in Bermuda, an increase of 28 or 8.6 percent. This accounted for 79 percent of the total expenditures made by the international companies even though they comprised only 3.2 percent of the total number registered.

According to the report, this underlines the importance to Bermuda of the international companies with a physical presence.

The international companies paid $63 million in taxes, fees, duties and licenses to the public sector.

The total Government revenue generated through the activities of the international companies, including the multiplier effects of households and businesses spending the income they generated by providing services to the international companies reached a total of $225 million.

The international companies directly employed 2,872 people in 1998, 1594 Bermudians, and 1,278 non-Bermudians. This represents an increase of 205 jobs over 1997. It is estimated that the economic activity resulting from the activities of the international companies directly and indirectly supports 8,600 jobs in Bermuda and strongly influences a further 4,400.

The total income, including secondary effects, generated by the international business for the Bermudian economy was $1.05 billion.

Dr. Archer said: "In an increasingly dynamic and competitive world of international commerce our success in continuing to attract quality international business will depend on our ability to continue to provide prudent fiscal management, a responsive regulatory and legislative environment and a strong partnership between public and private sectors.

"The contribution of the international companies to the economic growth and well being of Bermuda cannot be over emphasised. We look to this sector as an important source of jobs and income to ensure a bright future for Bermudians as we approach the 21st century.'' ARCHER REPORT Archer Report: 10,938 int'l companies registered here.

Int'l company spending on Island at $759 million.

$354.4 million spent on wages.

Generated 20,000 business travellers plus 12,000 friends and relatives.

Paid $63 million in taxes.

Directly employed 2,872 (1,594 Bermudians, 1,278 non-Bermudians).