The Department of Tourism's budget rose 19 percent this year, with the Ministry allocated an additional $6 million.

Tourism was given $38.1 million in this year's $1.2 billion Budget. It was given $31.1 million last year but only spent $30.1 million.

The additional $6 million it gets this year will mostly go towards advertising, direct marketing and sports marketing, although an additional $1.4 million has also been allocated to administration costs.

Last year Tourism saw its budget drop eight percent one of the few ministries to see a reduction.

Yesterday's Budget outlined the creation of a tourism mega-fund paid for the department and hotels. A plan to increase business travellers to the Island was also included.

Premier Ewart Brown said of the additional funds: "If we are to do well in the coming fiscal year and beyond, we must invest in our revenue generating industries now."

He added that the bulk of revenue generated by tourism was indirect and the economic impact of the industry was $400 million in 2009.

Dr. Brown, who is also Tourism Minister, said that while 2009 saw air arrivals drop ten percent, a turnaround is already in place.

"In fact I can reveal today that hotels are reporting increases in group bookings," he added. "Additionally, one of our airline partners providing daily service to Bermuda has reported just this week that bookings from February 2010 through January 2011 are up 30 percent."

Finance Minister Paula Cox, who delivered the Budget in the House of Assembly yesterday morning, said: "Efforts will be directed towards establishing a tourism mega-fund. This fund will complement the Tourism marketing budget and will be a private/public sector vehicle to be used for collaborative programmes."

The mega-fund was first raised in November last year when Dr. Brown said it would be a joint marketing effort with hoteliers which could include individual tailored television adverts.

Yesterday he added: "Ministry staff have begun the process through discussions with the executive members of the Bermuda Hotel Association to explore how a portion of the incremental funding will be applied against joint tactical promotional programmes subject to the establishment of a tourism mega-fund.

"These programmes will be jointly developed and funded.

And he said the infrastructure was already in place to start the joint venture via the Bermuda Alliance for Tourism. "Our goal in ensuring its success relies upon the private sector arriving at an innovative solution that establishes a sustainable revenue stream to contribute to the tourism mega fund," he said. "Such a solution should not rely on waiving, redirecting or depleting existing tax revenue."

Last year business visitors accounted for 17.5 percent of air arrivals. In 2008 they accounted for 18.8 percent of air arrivals.

The Finance Minister said it was important to create synergies between tourism and international business. She added that a stakeholder group will be looking to turn Bermuda into the venue of choice for corporate meetings.