Air arrivals for the first quarter of 2004 dropped seven percent compared to last year to 35,068, according to the latest Government statistics.

Visitors from the States made up 68 percent of the market but fell ten percent in number.

Air visitors from the UK also fell by ten percent to 3,238.

Numbers from Canada and other countries rose slightly but overall there were 2,623 fewer air visitors compared to the first three months of 2003.

Despite the drop in numbers, spending was only one percent down over the same period last year.

While outlays on accommodation and food dropped nearly 30 percent due to the downturn in air arrivals it was offset by a strong increase of 33 percent in spending on shopping, entertainment, transportation and sightseeing.

Overall resorts hosted 3,701 fewer visitors than in the first quarter of 2003 according to the Quarterly Bulletin of Statistics.

Fabian-inspired hotel repairs and renovations sparked a change in occupancy patterns as guest houses took a bigger share.

And the fall out from the hurricane also showed in a 20 percent decline in hotel employees ? amounting to 564 fewer jobs.

However, hotel renovation was a factor in the 34 percent rise in building activity, representing an increase of $14.9 million.

Commercial building activity rose by 73 percent compared to the first three months of last year with the BF&M site, the Bank of Butterfield in St. George?s and the condos on Dundonald Street playing a major part in the increase.

Residents returning from trips abroad spent 4.3 percent more than in the same period last year with significant increases in spending on electronic goods, cameras, clothing and footwear.

Business trips also jumped by one third to 2,367 trips.

There was a big rise in consumer spending with retail sales up nearly ten percent year-on-year.

Gross turnover in the retail sector was estimated at $129.4 million ? nearly $9 million more than the first quarter of 2003.

Building supplies needed for hurricane repairs helped boost demand while clothing stores and motor vehicles all saw an healthy boost in trade.