Bermuda?s balance of payments for the second quarter of 2006 recorded a $346 million current account surplus ? almost double that of the same period last year.

The increase in the current account surplus (CAS) ? which measures the amount of money Bermuda spends abroad and the amount brought into the Island ? has been attributed to growth in financial services and tourism.

An overall year-on-year increase of $110 million was shown in total payments to the rest of the world in the quarter ending in June. Receipts from abroad surged by $282 million to $1,008 billion, compared to the $726 million posted in the second quarter of 2005.

Tourism was the main contributor to the increase, with that sector rising by $14 million compared to the corresponding quarter last year.

The news was heralded by Finance Minister Paula Cox who described the figures as ?impressive.? However, Shadow Finance Minister Patricia Gordon Pamplin said that while both visitor numbers and spending are up, Bermuda has not attracted tourists with deep enough pockets.

Ms Cox said: ?I am very pleased with the performance of Bermuda?s external sector. The current account surplus of $346 million for the second quarter of 2006 nearly doubled compared to the same quarter in 2005. What is even more impressive is that the current account surplus for the six months ending June 30 2006 ? some $599 million ? was higher than the surplus for the entire 2004 calendar year. ?The balance of payments performance accords fully with the Ministry of Finance?s outlook for 2006. In the Budget Statement in February this year, I stated an expectation that the dynamic momentum of the international business sector would be sustained throughout 2006. I also noted that the outlook for the hospitality sector was favourable with an expected increase in air visitors as a result of additional airlift from the United States.

?As forecast, the financial services sector has been robust and the hospitality sector has been buoyant. The good news on the balance of payments is a positive reflection of the strong performance of the twin pillars of our economy so far this year.?

However, Mrs. Gordon Pamplin said: ?The Balance of Payments report serves to highlight that all motion is not necessarily progress.?

Using previously-released visitor figures to analyse the $159 million tourist spend, she said total visitors to the Island in the second quarter of the year numbered 228,781.

?Of these visitors, there were 101,133 arriving by air and 127,648 by cruise ship or yacht. Look at the contribution to the economy of each of these classes of visitors ? air arrivals spent $132 million out of the total $159 million, which when spread over 101,000 visitors averaged $1,305 per person,? she said.

But criticising the fact that cruise ship visitors do not have the spending power of air arrivals, she added: ?Compare that with the sea arrivals, who spent $27 million. When that paltry sum is spread over the 128,000 visitors from that segment, the average expenditure was $211. This highlights that the PLP policy concerning visitors is numbers driven, and not qualitative-results driven. We have succeeded in bringing numbers, but no money. This attitude and approach will not engender or sustain participation in the economy by the average Bermudian. The failure to concentrate on air arrivals does not help with an overall tourism product that would help employ Bermudians.?

She added that although services exported by Bermuda companies exceed those imported, the main beneficiaries are those working in the financial services industry.

?It is clear that Bermudians are in the main not benefiting from the fruits of the spoils of their country,? she said.