more than $25 million abroad in 1993.

That $25 million would have been a major boost to the local economy according to local merchants.

And traders are seeking a lowering of duty on their products to improve competition, or they fear some businesses may go bust.

Government figures state that some $22.78 million of overseas purchases were declared by returning residents between January and November.

Collector of Customs Mr. Gerry Ardis added that at least $3 million of purchases were also declared in December. Mr. Ardis said: "There has been a dramatic increase over the last year. We have collected a lot more duty.'' And those goods do not include products that were not declared by residents returning from vacation and business trips.

Managing Director at A.S. Cooper and Sons, Mr. Peter Cooper admitted he was surprised at the figures, because prices at the store are generally competitive.

Mr. Cooper said: "We believe our prices are significantly better for the local shopper. In fact in our store 85-90 percent of prices are better than in the United States.'' But Mr. Cooper admitted that if people want to shop abroad there is little local traders can do about it. Discounting hurts the stores because there is no way they can get back import duty.

He said: "In order for Bermudian merchants in general to be more competitive with the US we will have to see a relaxation in duties.

"Also we do not have the selection or volumes offered by stores like Macy's and Bloomingdale's.'' Mr. Cooper admitted that in general terms goods bought abroad were hurting local businesses. He said: "If it continues you may see certain stores going out of business, and that is going to throw people out of employment.'' Mr. Cooper added that $25 million circulated in the economy would have a "significant effect.'' Managing Director at Gibbons Company, Mr. Grant Gibbons believes Bermudians have found themselves with more disposable income now the Island is coming out of the recession and have decided to spend money abroad.

He said: "We are increasingly feeling this competition from the US so we have to respond by offering the best services that we can.'' Mr. Gibbons believes convenience, good service and catering to Bermudian tastes are all vital in attracting local custom.

President of Trimingham Bros., Mr. Eldon Trimingham believes the problem lies in the local tax system.

Mr. Trimingham said: "We pay taxes on a large portion of the goods we import.

If something was done to relax duty on merchandise we could bring down average prices by up to 17 percent.

"Mr. and Mrs. Bermudian see that they can go abroad where the overtaxed dollar, Americans are already taxed on income, can buy much more.

"They are not going to pay if they think prices are too high. We get both tourists and Bermudians who feel prices of many things are too expensive.'' Mr. Trimingham stressed that many goods would come into the Island undeclared and said the $25 million would mainly arise from people on vacation and not making visits abroad simply to shop.