All indications are that the tourist season has got off to a flying start as far as the retail sector is concerned - despite a poor report for retail sales in March.

The retail sales index rose by 2.3 percent year over year with spending for March reaching $45.1 million, according to figures released by Government yesterday.

This was pushed up by hikes in prices of liquor and petrol and new cars coming into the Island and boosting stock and sales, but overall retailers suffered a poor March.

George Grundmuller, head of the visitor retail division of the Chamber of Commerce, attributed the poor performance to the fact that Easter was so late in April - leaving all the Easter shopping in the month of April.

"We expected it would be difficult compared to last year," said Mr. Grundmuller.

"The prime reason was that Easter fell so late last this year - the 20th of April and last year it was at the beginning of April, when all the Easter sales were in March."

Mr. Grundmuller added that Easter was the unofficial beginning of the tourist season for the retailers and this was a particular help to the tourist-related stores that were hit hard in March.

"Retail sales in the US also struggled in March because of when Easter fell," he added.

Motor vehicles experienced the strongest growth with gross receipts in this sector up 17.3 percent. The report from Statistics Department said that there was some indication this was due to higher stock levels with the delivery of new car models - but it added that a lower than average sales performance experienced by some dealers.

Liquor store receipts jumped by 11.9 percent due mainly to a rise in the price of beer and alcohol rather than an increase in the volume sold.

The service station sector also got a boost and was up by 9 percent as the price of fuel went up across the Island.

The sale of building materials increased by 7.8 percent reflecting the on-going building activity in the construction industry which contributed to increased spending of building and hardware supplies in this sector.

Receipts for food stores increased a modest 3 percent compared to the previous year's level.

Gross revenue in "all other store types" rose by 2.9 percent compared to the level reached in March 2002.

There was a selectively stronger demand for big ticket items such as home appliances and entertainment equipment whose combined sales rose by 14.3 percent.

This high level of spending was fuelled by replenished inventory stocks which introduced new lines of products, the report said.

"The increase in sales of big ticket items shows that the economy itself is still strong in Bermuda," added Mr. Grundmuller.

"And that is pleasing to see." In contrast, retail stores catering to tourists experienced "significant declines in sales revenues" which suppressed the overall gross receipts at this sector level.

Within the apparel sector, the majority of stores reported sales receipts that were marginally higher year-over-year.

But these increases were not enough to push the gross receipts above the levels reached in March 2002 and declined by 2.2 percent.

But Mr. Grundmuller was upbeat, saying that things were looking up for the retailers despite the March results.

"We are looking forward to April and May, " he said.

"Early indications are that this season is better than last year. Many hotels have been booked out since Easter and in May and the cruise ships have also had an impact.

"We all knew March would be tough, but the season has kicked off well."