Buying abroad is soaring according to Government figures with nearly $40 million declared at customs last year.

That figure was up six percent over 2001 as more than 42,000 overseas trips were taken.

In the last quarter overseas purchases increased 9.5 percent year over year with a total of $12.6 million of goods declared at entry.

Overseas trips rose by 13 percent according to figures from the Bermuda Quarterly Bulletin of Statistics.

Spending on clothing and footwear increased $439,000, household items, furniture and appliances increased by $638,000.

However, spending on tools went down by more than $400,000.

Chamber of Commerce Retail Visitor Division Chairman George Grundmuller said the rise in overseas shopping did worry local retailers.

However, he said the Buy Bermuda campaign, which saw print, TV and radio adverts emphasising the advantages of shopping locally, would be repeated later this year for the pre-Christmas spree.

He said plus points included the ability to return goods, contributing to the local economy as retail employed 4,600 people.

Clothing was comparable to US prices, said Mr. Grundmuller. "You see lots of specials.

"I think retailers are making a great effort to meet these challenges."

Retailers here had to cope with higher rent, utility and labour costs while multi-billion dollar America corporations had greater power in forcing discounts on manufacturers said Mr. Grundmuller.

"We have seen an increase in local spending but the problem has been visitor spending."

But he said 2001 had been a low year for overseas shopping trips because of the impact of September so 2002 was bound to see a rise.

Mr. Grundmuller said he didn't think overseas shopping would always be on the rise.

"Shopping is fun for some people. They combine it with overseas trips. People will always shop overseas.

"But we are asking people to compare prices and also calculate the costs of duty and freight and hidden charges such as sales tax, you don't see the sales tax."