Tourist spending drops almost 11%
Fewer air arrivals resulted in a knock-on decline in tourist property bookings, and a drop in spending on tourist activities of almost 11 percent.
According to third quarter statistics released yesterday, cash-strapped visitors appear to have stayed with friends and family in Bermuda instead – the number staying in private homes was double that of last year.
The first nine months of 2008 saw 228,848 visitors travel to Bermuda, 14,446 fewer than the first three quarters of 2007.
The declining number of arrivals translated into fewer bookings across the board for all tourist properties. The number of guests staying at resort hotels dropped from 43,869 to 37,132 – a 15.4 percent decline compared to the same quarter in 2007.
Visitors staying at small hotels, housekeeping accommodations and guest houses fell 22.5 percent, 19.6 percent and 11.9 percent respectively.
However, the number of visitors opting to staying at private homes increased by close to 50 percent.
Those who came in by air also spent less while they were in Bermuda than over the same period last year – an estimated $131.9 million during the third quarter of 2008, compared with $141.8 million in the same quarter of 2007.
Expenditure on accommodation and food fell 5.9 percent to $104.7 million.
Meanwhile, spending on shopping, entertainment, transportation and other tourist activities dropped by 10.8 percent or $3.3 million down to $27.2 million.
Overall spending by air arrivals declined seven percent, which was mainly attributed to curtailed spending habits amid rising prices and concerns over a potential global economic crisis.
The latest in a stream of bad news came after different but equally gloomy third quarter statistics released by the Department of Tourism on November 25.
At that time, Premier and Minister of Tourism Ewart Brown said estimated of total spending, based on exit surveys from visitors, was down from a minimum of $127.4 million to a minimum of $106.8 million, and from a maximum of $149.3 million to a maximum of $129.5 million.
A breakdown of spending patterns revealed that people splashed out less on accommodation and eating out during their stays.
The amount spent on accommodation by the average person fell from $871 to $791, and that spent on meals and drinks dropped from $334 to $283.
Based on travellers' exit surveys, it was estimated the total amount spent fell from a minimum of $1,330 to $1,100 per leisure visitor; and from a minimum of $1,128 to $1,081 per business visitor.
