of foreign revenue in Bermuda.

Finance Minister the Hon. David Saul said yesterday he believes the strengthening of international business has pushed declining tourism into second place as the Island's most profitable sector.

Dr. Saul cites evidence from Prof. Brian Archer's study of "International Companies 1991: Their Impact on the Economy of Bermuda.'' The study shows the improvement in export earnings of businesses based in Bermuda over the past six years.

A table of total export earnings, in 1991, shows tourism and international trade closer than ever before. While tourism held 51 percent of earnings, international business had 48 percent.

Dr. Saul now believes that the 1992 figures will be a reversal of those percentages, judging by statistics reaching his office.

He said: "The figures for 1991 show the gap on foreign export earnings between international business and tourism have narrowed and are almost now the same.

"I believe that they will have accommodated my belief that international business will earn more foreign currency in 1992 than tourism. It is because international business has gone up and tourism has taken a dip.

"International companies earn foreign currency for Bermuda and directly bring some 2,000 jobs, while indirectly affecting another 10,000 jobs.'' In fact, direct employment by international businesses registered in Bermuda fell slightly by 27 to 1,909. More than 64 percent of those employed are Bermudian.

Despite the global recession, Prof. Archer's study shows that the international trade sector made some $422.6 million compared to $395 million in 1990.

In the same period earnings from tourism tumbled from $494.4 million to $456 million last year.

Now with tourism chiefs fighting to avoid a bleak winter, foreign trade looks set to become the Island's most profitable sector.

A spokesman for the Finance Ministry said the good news for international trade had cushioned the blow being felt by tourism.

He said: "It is important to note that the policies undertaken in the 1970s encouraging businesses to come to Bermuda has paid off.

Dr. Saul said he hoped the tourism sector would recover as the world recession ends.

He said: "In the long term were are expecting both sectors to earn the same.

We hope that in five years time both will be earning $700 million each.''