The Progressive Labour Party's landmark Budget has leapt to the assistance of the Island's struggling tourism industry with a $2.5 million cash boost.

Finance Minister Eugene Cox told the House of Assembly yesterday that his colleague, Tourism Minister David Allen, would have an estimated bankroll of $35,699,000 to assist him and his department in its resuscitation of the once top industry on the Island.

It marks a seven-percent increase on the $33,237,000 the department was slated to receive during the last financial year and ranks Tourism as having the fifth largest current account budget.

The department will need the additional funding to help turn around sagging tourism statistics.

Mr. Cox noted: "Visitor arrivals by air were down 2.9 percent in 1998. Of particular concern, arrivals from the United States, Bermuda's largest tourist market, were more than 3.5 percent below 1997.

"This is a continuance of the experience in 1997 which recorded a decline of 2.6 percent in air arrivals from all sources for the full year.'' Mr. Cox said: "We are all aware of the need for, as we stated in our platform, `a rescue mission for tourism'.

"The Minister of Tourism has already begun to deal aggressively with the problems he has seen and we know about. However, he does need significant resources quickly to implement some of the remedies.'' Mr. Allen was off the Island and unable to comment on the Budget announcement yesterday.

Of that $35.7 million, $1.9 million has been earmarked for the department's new advertising campaign in North America which will see Bermuda re-introduce the medium of television to its campaign.

A further $150,000 will go to support Bermuda's marketing presence on the other side of the Atlantic where, in Germany, the Island will be represented at the Straus Burg Affair.

On the administrative side of the coin, some $120,000 will go toward operating costs in the Island's overseas sales offices.

Events lined up for the year 2000 also received significant funding in yesterday's Budget.

About $93,000 will go toward meeting the Island's commitments in preparation for the Tall Ships 2000 Race and $300,000 will be used to sponsor the Bermuda Bowl bridge championship.

Mr. Cox noted: "Mr. Speaker, we must be aggressive in inviting out tourists to come and we must provide a welcoming atmosphere when they arrive, from the Airport through the hotel to the activities available to them during their stay and all Bermudians must be involved.'' To this end, initiatives already underway will continue to get cash from Government with the Monitor Group getting $500,000 and the Freeman Group receiving $486,000.

The Visitors Service Bureau is set to be expanded and will receive $132,000 in support of its efforts to assist visitors.

Arriving tourists will be entertained at the Airport to the tune of $390,000 with the Tourism Department providing $250,000 toward that total cost.

Mr. Cox noted that meeting the challenge revitalising the tourism industry represented would enable the PLP to meet discrepancies in the Island's economic sector.

While the international business sector had continued growing, he pointed out, that was not a trait Bermuda Tourism was enjoying despite the worldwide growth the industry was experiencing.

"It is no longer the largest single component of our foreign exchange earnings and has not been for some five years,'' said Mr. Cox.

"This has impacted on the jobs of Bermudians who have seen establishments close and employment that they counted on throughout their lives simply fade away.

"Regrettably hotel employment fell by 251 jobs and there were 181 jobs lost in restaurants, cafes and bars.'' Workers in tourism had to be encouraged to feel their jobs were valued so young people would be encouraged to enter the industry, continued Mr. Cox.

But Bermuda would not be allowed to become totally inward focussed under the PLP watch, he added.

"While expanded Bermudian employment will be the objective in a revitalised tourism industry, outside investment in the industry will also be encouraged.

"We recognise that globalisation exposes our tourist industry to world economic pressures and that value for money and a co-ordinated approach are essential elements of a successful future.'' Shadow Tourism Minister David Dodwell declined to make specific comments on the new Budget until he had a chance to study it further.

However he did say: "I don't see any real surprises in it. If you look at a lot of items on the list, besides the new advertising campaign, they were already under way.

"I think what continues to concern me is the continual focus on marketing. It is absolutely essential but not unless you deliver the type of product the customer demands today. Product building is not mentioned in the Budget statement but it should be.'' HOUSE OF ASSEMBLY HOA