retail sector already suffering from the slump in visitors.

Residents entering Bermuda declared purchases totalling $22.5 million in 1992.

That marked a jump of 8.2 percent from the $20.8 million they spent abroad in 1991.

In the fourth quarter of 1992, residents reported spending $7.6 million abroad, up 7.5 percent from the same quarter in 1991, Government statistics released last week showed.

But views varied on exactly what the figures meant.

Mr. Louis Mowbray, president of the Bermuda Chamber of Commerce, said some local retailers are just hanging on, and the jump in overseas shopping is "a worrying trend.'' But Finance Minister the Hon. David Saul attributed the increase to changes at Customs that are making Bermudians more forthcoming about their overseas purchases.

Mr. Mowbray said the rise in overseas shopping is "going to take its toll on the retail trade over the next year''.

"What it is, in effect, is a growing tendency to take advantage of high-volume, low mark-up operations in places like New York...where the prices are much lower than can be offered locally,'' Mr. Mowbray said last week.

Bermuda's retailers face high transportation costs, relatively high wages, and low volumes, except during the peak visitor season.

And retailers were already hard hit last year, because there were 60,000 fewer air visitors.

While they miss out on warranties and other advantages of buying at home, "it's a natural tendency for people to go where the least cost is'', and "there is not a lot that can be done,'' he said.

Government promised in its recent budget to review its tariff structure, and that could help in giving Bermuda retailers more room to manoeuvre on prices, Mr. Mowbray said. The chamber will participate in that review.

Dr. Saul attributed the higher figures to "better policing by Customs''.

There is an improved professional attitude among Bermuda Customs staff, and the results began to be seen in increased declarations in the spring, he said, adding that he expects the numbers will level off.

Dr. Saul said that despite the jump in overseas sales, "it was a very good Christmas for Bermuda retailers''.