Bermuda's tourism budget will barely increase in the coming year but Tourism Minister Renee Webb indicated that prudent times maybe ahead for the ministry.

The budget goes up from the $35.5 million to $35.9 million for 2003-04, with part of the increased spending on a new office in Washington D.C..

The overall marketing budget is predicted to fall by $278,000 in 2003-04 from $22.6 million to $22.4 million, even though the Island is embarking on a major re-branding exercise and using the television adverts in the United States for the first time in years.

However, North American advertising is predicted to go up in 2003-04 from $9.2 million to $10 million. Direct marketing to the US is scheduled to fall by two percent from an estimated $4.56 million in 2002-03 to $$4.48 million in 2003-04.

The marketing budget for Europe, which has seen increases in visitors recently and is seen as a potentially lucrative catchment area for wealthy tourists, will remain static at $3.17 million.

The logo for the North American campaign is Bermuda shorts, which Finance Minister Eugene Cox described yesterday as "tasteful, delightful, thoughtful, and full of Bermuda's charms".

Tourism Minister Renee Webb told The Royal Gazette yesterday: "I didn't push for any increase in spending. We need to be more efficient in what we spend, looking at budgets to get savings and shifting budgets."

Mr. Cox told MPs that while there were underlying concerns about the hospitality industry "there were some very positive signs of recovery in 2002.

"Visitor arrivals increased year-over-year, visitor expenditure also increased, and for the first time since 1994, there was a year-over-year increase in the number of bed nights sold."The 2001 season went into freefall following the September 11 attacks in New York and Washington, and some recovery was made last year.

The number of air arrivals went up from 278,153 to 284,022, cruise passengers increased from 197,960, and yachts were up from 4,155 to 5,751.

Average visitor spending (including accommodation) went up from $1,300 in 2001 to $1,400 in 2002.

Although year on year, the arrival figures are up, Bermuda Hotel Association recently expressed concern that the recovery was nowhere near as strong as needed to get back to pre-September 11 levels.

Salaries are predicted to go up by $164,000 (four percent) to $4.14 million.

Government has also embarked on an on-Island education campaign to ensure Bermudians know the importance of tourism to the economy.

"Clearly, one of the keys to success in tourism is the level and calibre of service," said Mr. Cox.

"To this end, the Ministry if working in conjunction with the National Training Board and Bermuda Hotel Association to introduce recognised industry standards for all persons employed in the hospitality industry."