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Air capacity on flights from Boston went up 117 per cent during the quarter, which led to 73 per cent more air arrivals from the city.

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One prominent hotelier said "We are paying north of 30 cents a k Wh.

I know of no other competitive jurisdictions, even on small islands, where there costs are so high. The cost per square foot for new build is a multiple of at least two over competitive areas.

There is a $1,000 fine for those who break the law. Tourist air arrivals rose for the ninth consecutive quarter, the Bermuda Tourism Authority revealed yesterday.

Bermuda is the sixth highest place in the world in terms of population per square mile, with the heaviest density of motor traffic of any resort. Public transportation buses do not pickup or collect visitors at the airport and cannot carry any luggage. Rough weather at sea created a near 50 per cent fall in cruise ship arrivals in the first three months of the year.

The figures show the sky-high construction and operating costs hoteliers and developers face when considering building in Bermuda, especially when compared to Bermuda's competitors where it is far cheaper to build and $400,000 is presently the most.

Thus it is difficult to encourage investors to build hotels in Bermuda.

Double-digit per cent increases in leisure air arrivals and spending are further steps in a long growth trajectory that is built on solid marketing fundamentals put in place by the BTA.

Mr Dallas explained much of the air arrivals increase was due to higher capacity particularly between the island and Boston.

Mr Dallas said: We had three cruises that had to be cancelled, one of which was rescheduled.

In a quarter, that small movement can make a big difference.

Local banks have them inside or out, other places do not.

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