Duty-free shopping for tourists could help a struggling retail industry, which has seen visitor spending plummet 22 percent during the first quarter of 2008.

While the number of tourist visiting the Island tapered off by 8.4 percent compared to the same period in 2007 the amount they are spending dropped by $14.6 million, approximately 22 percent.

And retailers have noticed.

"Everyone has been saying it," Chamber of Commerce president Phillip Barnett said yesterday. "The retail sector is hurting.

"I believe that we need to properly investigate duty free shopping on the Island for tourists. At the moment there are no advantages to buying a Rolex on the Island. I think if we were able to offer duty-free shopping tourists would be very interested in shopping on the Island and it would be attractive. It would prove a big help for retailers."

And it is not just tourist spending that is down. Bermudians are spending more abroad on goods than before. The first quarter saw a 22-percent increase in overseas spending by residents compared to the same period in 2007. Just three years ago residents were spending $11.8 million abroad between January and March, now they are spending $15.1 million.

"We need to start supporting our retailers," Mr. Barnett said. "People have to start supporting a local industry. If there are retailers out there that you like, please don't wait until you go away, go in and buy a shirt from them. These retailers are trying very hard.

"If we don't support them other retailers will close down, and then there will be no choice left on the Island and that is not a good position for us to be in."

The Department of Tourism did not respond to queries about visitor spending yesterday, indicating they would be holding a news conference on the state of tourism next week.

In a statement earlier this month the Department said it was pleased that figures showed while there were less tourists coming to the Island, they appeared to be spending more. The estimated visitor expenditures for the first quarter of 2008 showed average per person expenditure ranging from $1,013 — $1,216, up from a range of $979 — $1,088 in 2007.

At the time Premier Ewart Brown said: "It's encouraging to see that visitors coming to Bermuda consistently spend more when they get here. That sort of injection is critical for all of our tourism-related businesses."