The Bermuda economy continues to have a mixed performance, with tourism arrivals declining, and construction booming as third quarter statistics released yesterday show.

In the tourism sector, the total number of visitors fell marginally by 0.5 percent during the quarter compared to third quarter last year, but spending by visitors increased.

Up to the end of September, a total of 462,397 visitors arrived in Bermuda, a decline of about 1.5 percent compared to the same period last year.

Third quarter air arrivals fell 4.4 percent, with 119,044 tourists visiting the Island during the peak summer season. On average air visitors spent $1,162 per person, an increase of more than 3.98 percent, for total spending of $151 million, up 2.3 percent during the third quarter.

"This is a hopeful sign, because per capita expenditures have been falling over recent years,'' Finance Minister Grant Gibbons said in a statement. "If the current improvement in visitor expenditure levels can be maintained, efforts to increase visitor arrivals, if successful, could have a magnified positive effect on the tourism industry.'' Meanwhile cruise arrivals rose five percent year-over-year, with 92,258 passengers arriving during the third quarter. They spent about $21.6 million during the third quarter.

Employment in the hotel industry fell to 4,090 during the third quarter, 5.3 percent below the previous year's level. The major hotels employed 239 fewer staff during the third quarter, or about seven percent below the same period last year.

The construction sector continued to show strong growth. The value of work put in place during the third quarter increased about 50 percent over the same period last year to $36.8 million. Ongoing work at Pearman Watlington's waterfront development and on the Atlas Building on Church Street accounted for 80 percent of the spending. An estimated $14 million worth of new projects were started during the third quarter.

Up to the end of September, construction spending increased about 86 percent to $50.8 million.

"The strength in the construction industry is reflected in the employment income earned by construction workers, which is up by 8.6 percent on a year-to-date basis over last year,'' Dr. Gibbons stated. "For the economy as a whole, employment income is up 6.6 percent so far this year.'' Retail sales were also higher during the third quarter. Consumers spent $139.2 million in the retail sector during the quarter, an increase of about seven percent over the same period last year.