gradually improving economy and a booming construction industry.

"In general the economy is clearly very strong although the tourism sector is a disappointment,'' Finance Minister Grant Gibbons said yesterday. Tourism arrivals declined 2.1 percent in the first quarter to 55,346 compared to the same period last year. However visitor spending increased slightly by about $300,000 over the first quarter of 1996 to $54 million in the first quarter this year.

"Visitor expenditure is stable or slightly up and shows there is some resiliency there,'' Dr. Gibbons said. "That's something of a positive sign.'' In the construction sector $42.8 million worth of new projects was started during the first quarter, over half the $73.3 million started in the entire 1996 year. Current spending by Government and private developers on all construction projects, those started and underway, was estimated at a record $35.4 million, according to the Statistics Department.

Government accounted for about 70 percent, or $25.3 million, of the total estimated spending during the quarter. The majority of public money was spent on Cedarbridge Academy, the International Airport and the additions to the King Edward Memorial Hospital.

The main spending in the private sector occurred at the Atlas Building on Reid St., the Underwater Exploration Institute and the additions to the American International building on Richmond Rd.

Imports showed an increase in almost every sector in the first quarter compared to the same period last year. Goods worth a total of about $145.3 million were imported during the first quarter, a rise of about 14.5 percent over the $126.9 million imported during the same period last year.

The number of local and international companies registered in Bermuda continued its general upward trend. There was a 40 percent increase to 323 in the number of new international companies registered during the first quarter compared to the same period last year. In the local sector, 53 new companies were formed in the first quarter 1997, one more in the same period last year.

In total there were 2,241 local and 8,703 international companies registered as incorporated in Bermuda by the end of the first quarter.

Government revenue declined in all sectors -- except from Customs duty and payroll tax -- by a total of 4.7 percent to $139.1 million in the first quarter compared to the same period last year.

Dr. Gibbons said it was "premature'' to consider the decline as an indication of a trend due to shifts in revenue collection throughout the year. He said intakes during the second quarter indicate Government revenue is on target for the rest of the year.

"I don't think you can get any indication of a trend after one quarter about where we will be at the end of the year,'' he said.