Visitors spent $64 million in the first quarter of this year making it one of the best so far for visitor spending, in spite of a 4.4 percent dip in arrivals.

Finance Minister the Hon. Dr. David Saul attributed the rise from 57.7 million last year to increased average length of stay.

But first quarter statistics released yesterday showed that retail sales reflected a "general weakening in consumer spending'' most marked in the motor vehicle and service station sector which were down 5.4 percent from last year.

An increase in overseas spending of 12.4 percent meant spending levels superseded last year's with $5.2 million spent on goods abroad this quarter.

The statistics showed "strong increases'' in electronic and photographic equipment, household appliances, furniture and toys and sporting goods purchases overseas.

While the Finance Minister would not be drawn on what the figures portended for the rest of the year, he admitted that retail sales were tied to visitor numbers. And he added that sales had not sprung back to expected levels after a good Christmas.

Chamber of Commerce chairman Mr. Bobby Rego claimed the decrease in visitors and increased spending aboard created a "double whammy'' for merchants.

Retail sales, he said, were "very soft'' with "no real movement''. Tourist numbers and sales, he claimed, went "hand-in-hand''.

While hotel employment dropped by five percent over last year, the 3,643 employed in the first quarter still compared well with early 1990 years.

Small hotels, cottage colonies and clubs and guest house units suffered worst with occupancy level declines of up to almost 20 percent.

Meanwhile international business registrations fell with 38 fewer than last year's first quarter. Nevertheless, 1994 was a particularly strong year for growth in the industry and this year's first quarter was the second best ever.

"Last year was hard to match,'' Dr. Saul pointed out. By the end of this year's first quarter, both local and international business sectors had more companies in operation compared with 1994's first quarter.

Construction declined with the completion of public sector projects including the Tynes Bay Incineration Plant.

Inflation held steady at 2.4 percent which remained unchanged from the previous quarter.