More businesses will shut up shop in St. George's, with Carole Holding Ltd.'s store on the main square closing last week, and The Royal Gazette understands AS Cooper & Sons Ltd. will not renew the lease on its store in town at the start of next year.

Carole Holding, of Carole Holding Ltd., said she was closing her operation in St. George's as a result of the number of cruise ships visiting the town being cut from two down to one.

She said the one member of staff who worked at the shop has been moved to the Hamilton store

"We had a really good season in St. George's this year, but we are closing the shop because next season we will only have one ship, which is 50 percent of the business," she said.

Richard Hartley, managing director of Burrows Lightbourn, said trade at the company's St.George's store had been depressed for a long time, citing competition from other liquor stores in the town and the fall in tourist numbers as the reasons behind the drop off in business.

"I think there are several issues that are pertained to us only as the liquor industry," he said.

"The first is the large number of stores in a small area we have got four or five liquor stores within the town competing with each other.

"And the downturn of the economy has, of course, had a negative impact as well."

He said a lot hinges on the future of the new Park Hyatt resort project at the former ClubMed site and whether the tourists will return to St. George's.

"Generally it is a bleak picture down there and I guess we are all waiting to see what really will happen with this hotel development and obviously if that happens down the road it will change the picture for everybody in due course, but it is a long time to wait," he said.

But Mr. Hartley said his company's St. George's operation had been in the town for a number of years and would soldier on despite the current tough economic climate.

"We are having to be very careful with our overheads and see where we can make the necessary savings," he said.

"St.George's has been a rather sad economic picture for a long time and I don't see it getting better soon."