The rocketing value of goods bought overseas by Bermuda residents was described as "frightening" by Island retailers.

Government figures released yesterday showed overseas purchases declared at Bermuda International Airport by returning residents climbed in December 2006 by $1 million ? or 14.5 percent ? compared to the same month in 2005.

The value of goods declared in December was $7.67 million, bringing the 2006 total up to $66.23 million ? nearly nine percent of the total spent by consumers during the year.

Worryingly for local retailers, that figure does not include goods bought over the internet and received through the post.

Now the Chamber of Commerce is planning to fight back against the leaching of shopping dollars to competitors abroad with a new educational campaign to spell out the retail industry's value to the Island.

Bermuda retailers did see improved sales in December, thanks largely to a last-minute rush in Christmas shopping, according to the Retail Sales Index, compiled by the Department of Statistics.

There was a 4.8 percent year-on-year increase in sales in the last month of 2006, a 1.4 percent rise after inflation was taken into account.

Kristi Grayston, co-chairperson of the Chamber of Commerce's Retail Division, said: "It's nice to see that retail sales are up, but the overseas spending figure is always the frightening one.

"Although sales were up 4.8 percent for us, overseas goods were up 14.5 percent ? and that's only the items declared at the Airport. That sector is growing and growing."

The facts bear out Ms Grayston's argument. In December 2005, the value of goods declared by returning residents went up $1.1 million (18.8 percent). After another steep rise in 2006, local retailers are becoming increasingly concerned.

Meanwhile, while no official figures are available on internet retail imports to Bermuda, the world-wide web continues to increase its share of the US market.

ComScore Networks, a company which measures internet traffic, said retail spending on US sites, not including travel, reached $102.1 billion in 2006, a 24 percent increase on 2005.

Online "holiday commerce", during the last two months of 2006, hit $24.6 billion ? up 26 percent from the same period the previous year.

As for what Bermuda's retailers can do to stem the tide of overseas competition, Ms Grayston said it was a question of awareness.

"We'll be launching a campaign at the end of this month, an extension of the 'Buy Bermuda' campaign, focusing on education," Ms Grayston, owner of the Pulp and Circumstance stores, said.

"The message will be that a dollar earned in Bermuda and spent overseas is not coming back. When you buy in Bermuda, you invest in Bermuda.

"If you continue to shop overseas, it gets harder for Bermuda retailers to offer the choice that people say they want to have here.

"We all shop overseas ? it's a leisure activity and that's why we provide the opportunity for tourists to do the same thing when they come to Bermuda.

"But there are certain people in the community who do all of their shopping overseas. And that isn't doing the community any good.

"The retail sector employs nearly ten percent of the population and people need to be aware of the role it plays in the community."

Campaign literature will be mailed to homes and there will also be advertising through print and electronic media. The campaign will be conducted by the Chamber and sponsored by the business community.