Visitor spending plummeted by more than $18 million in the second quarter of this year, according to statistics released this afternoon.

The Quarterly Bulletin of Statistics shows that air arrivals during the second quarter fell 10 percent compared to the same quarter last year. The number of visitors stood at 89,642 people.

The report says that the “decline can be partly attributed to the knock-on effects of soaring oil prices on the global economy, as some major carriers have reduced their service to the Island to combat increased fuel costs”.

Air arrivals from the United States fell 14.5 percent in the second quarter to 66,379, down from 77,648 visitors in the same period last year.

“Despite lower numbers, visitors from the U.S. continue to account for the largest percentage of air arrivals to the Island, representing three-quarters of all tourists,” says the report.

“Conversely, modest growth was recorded in arrivals from other major tourist markets as the number of visitors from Canada and the United Kingdom increased by six percent and and 5.9 percent respectively.”

The decline in air arrivals translated into a similar fall in visitors staying at guest accommodations, according to the report.

Resort hotels experienced a decline in occupancy for the fifth consecutive quarter, dropping 13 percent, or 6,077 fewer bookings than recorded in the second quarter of 2007.

Similarly, visitors staying at small hotels, cottage colonies and clubs fell 19 percent to 17,515 compared to 21,631 people in the same quarter last year. The number of visitors staying at housekeeping and guest houses also declined significantly, dropping 18.1 percent and 18.6 percent respectively.

In contrast, approximately 6.8 percent more visitors stayed in private homes.

Expenditure by air arrival visitors spent an estimated $126 million during the second quarter of this year, approximately $18.3 million less than the second quarter of 2007. “This 12.7 percent decrease in spending is a direct consequence of fewer air visitors,” says the report.

Expenditure on accommodation and food fell 18.9 percent to $91.8 million, compared to the $113.2 million spent in the same period last year. However, spending on shopping, entertainment and transportation increased 10.0 percent to $34.2 million.

* Full story and reaction in tomorrow's Royal Gazette.