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Tourism contribution to economy shoots up by one fifth

The graph shows tourism?s contribution to employment in Bermuda, relative to other sectors

The Tourism industry pumped $297 million, or 19 percent more cash, into the economy in 2010 and led to an eight percent increase in jobs in the sector, a Government report showed yesterday.The $297 million was 5.2 percent of Bermuda’s Gross Domestic Product (GDP) last year, which was higher than the previous year’s level, but remained below the 6.1 percent peak share of GDP reached in 2006.Still, last year’s increase represented hundreds more jobs for Bermudians.The figures showed employment directly and indirectly from tourism grew by 557 workers to 5,594 jobs last year. That figure included 3,579, or eight percent, more jobs stemming from tourism directly and 2,015 jobs indirectly.The 3,579 jobs accounted for nine percent of the total work force, making the industry the second largest employer of Bermudian workers, after Public Administration/Government.More than 70 percent, or 2,534 of the 3,579 workers employed directly by tourism were Bermudian.In total, tourism together with industries related to it fed a total of $658 million into the economy in 2010 - up from $553 million in 2009.Despite moving up a notch in 2010, tourism remained the eighth largest sector of the economy, with the $1.5 billion international business sector staying at number one, followed by real estate and renting.Direct tourism employment comprises jobs such as airline pilots, hotel and restaurant staff, while indirect tourism employment includes jobs that generate indirect tourism output, such as employees of businesses that provide food supplies to hotels and restaurants.So for every 10 direct tourism jobs generated in 2010 an additional 5.6 jobs were indirectly created.The figures also showed in 2010, a total of 585,266 visitors to Bermuda translated into $393 million spent on goods and services within the local economy.The total level of spending by air, yacht and cruise visitors (including crew members), increased by $53 million when compared to spending levels recorded in 2009.Visitor outlays on accommodation services and food & beverages increased by $38 million and $11 million, respectively. In contrast, spending by visitors on passenger transport services and entertainment services declined by $2 million each when compared to 2009.Meanwhile Bermuda residents spent $417 million on foreign travel.Government spent $35 million to provide tourism services. Spending on tourism promotion, marketing and related professional services was $2 million higher and accounted for 74 percent of total government spending on tourism in 2010.Among other tourism-related spending categories, compensation of employees at the Department of Tourism and overseas tourism offices dipped two percent compared to last year.The Department said the 2.2 ratio of total output ($658 million) to direct output ($297 million) in 2010 meant that for every dollar of direct tourism output generated, another $1.20 of indirect tourism output was produced..