during July.

And Tourism Director Mr. Gary Philips remains "fairly optimistic'' that the trend will continue.

"I don't think this is just a result of the recession ending in the United States,'' said Mr. Philips. "It is more consumer reaction to the recession.

"People are still being very careful about where they spend money but consumer confidence seems to be on the rise.'' Total arrivals by ship and air in July rose to 70,486, an increase of 12 percent on July, 1992, and four percent on the same month in 1991.

In the first seven months of the year figures were up on both 1991 and 1992.

The increase in visitors over the first seven months of last year was around 12 percent.

There was also an increase of seven percent on the previous year's January to July period, which is recognised as being before the recession really hit Bermuda and the United States.

Mr. Philips added: "I think things are really holding well. There is an extremely good synergy working between all the elements that make up the decision for people to travel.'' The Director mentioned factors such as competitive air fares, hotels not increasing their prices, and a number of value-added incentives including children-for-free offers.

Pointing out that Bermuda was touted in USA Today as a favourite vacation target for many people, he said: "It is because of the close proximity to the United States and because it enjoys a reputation for value for money.

"That value for money is not just in pricing but also in the service people receive.'' The July figures revealed a boost in arrivals from most parts of the United States and Europe, with the North East US beginning to pick up.

Looking at the figures, Mr. Philips stressed that he would not know exactly how Bermuda had benefited until quarterly retail statistics were compiled later in the year.

The information showed that a wide cross-section of people were coming to Bermuda because of the variety of accommodation booked. Figures in all sectors were rising.

"I am fairly optimistic that the trend will continue, but we are warning people to store up against a possible dip over the Labour Day weekend, which traditionally means children in the United States are going back to school,'' said Mr. Philips.