pumped $340 million into the local economy and generated 5,700 jobs in 1991, including secondary effects.

A further 5,500 jobs were boosted by the activities of exempted and permit companies.

These are some of the findings of a report entitled -- `International Companies 1991: Their Impact on the Economy of Bermuda'.

The study was compiled by British economist Dr. Brian Archer for the Ministry of Finance.

It shows the number of international companies registered in Bermuda at the end of December, 1991, was 7,089 -- an increase of 1.2 percent on 1990.

Only about 260 (3.67 percent) of these had a physical presence on the Island, but they accounted for $233 million (68.5 percent) of expenditure.

The overall increase in foreign companies based on the Island over the last ten years is over 26 percent, including a 12.6 percent jump between 1987 and 1991.

Over the last five years, the most significant growth (of 63.8 percent) has occurred in mutual fund companies.

Other key areas of growth have come in firms dealing with natural resources (44.3 percent), shipping (36.5 percent), and investment holding (36 percent).

The $340 million spent by international companies in 1991 was a seven percent increase on the previous year.

Almost half of this amount, $165.1 million, came from insurance-related companies, who make up 47.6 percent of the firms with a physical presence in Bermuda, which is the same percentage as in 1987.

Money international firms spend in Bermuda is split up into four categories, said Dr. Archer. These are: Taxes, fees, duties and licences paid to Government ($29.6 million for 1991); Salaries and benefits paid to Bermudian staff ($113.5 million); Fees for goods and services provided by Bermudian businesses ($70 million); and Professional fees to other Bermudian businesses for supplying legal, accounting, managerial and banking services ($126.9 million).

Dr. Archer said: "A large proportion of the money received by the public sector, the Bermudian companies and households, is re-spent.

"This sets in motion further rounds of economic activity as the money recirculates within the economy. The money continues to flow through the economy generating additional secondary business activity, incomes, employment and public sector revenue but with the effects progressively diminishing as money leaks out of the system to purchase imports and into savings.'' In terms of employment, 1,909 people were directly employed by international firms at the end of 1991, of which 1,223 (64 percent) were Bermudian.

The number of secondary jobs generated came to 5,700, with a further 5,500 jobs affected in terms of remuneration and hours of work.

When secondary effects and spending by visitors brought in by international businesses is included: Total income generated by the trading activities of international firms came to $452 million; Total public sector revenue generated was $96 million; and Net impact on the balance of payments was $145 million.

Approximately 7,000 business travellers visited the Island in connection with international business.

"Excluding the hospitality they received, business visitors spent approximately $1.4 million in Bermuda during 1991 and their accompanying friends and relatives a further $7 million,'' it said.

Finance Minister the Hon. David Saul said recently that early figures for 1992 indicate that international business may overtake tourism as Bermuda's main foreign revenue source.

But Mr. Richard Butterfield, head of Bermuda International Business Association, said yesterday the Island's two major foreign currency earners were not in competition with each other.

"To me, this is not really significant,'' he said. "It's my opinion that neither industry can prosper unless the other one does. They are symbiotic.

"There's no race. The international business sector is not seeking to boot out the hospitality industry. That makes no sense.'' Dr. Brian Archer.