Bermuda suffered a 10.7 percent slump in visitors for the first quarter of this year - which Government blamed on media “propaganda and exploitation” of the war on Iraq and SARS.

Overall, figures were down from 42,632 to 38,052 compared to the first quarter of 2002, with air arrivals off 9.8 percent from 41,780 to 37,690.

A Department of Tourism briefing on the figures states: “Media propaganda and its exploitation of these events (war and SARS) forced potential travellers into the mindset that maybe the first three months of 2003 was not such a good time to travel overseas.

“Bermuda's arrival numbers suffered from the sensationalising of these global occurrences. The general sense among our US core market was a feeling of uncertainty.

“With the Homeland Security Agency raising the terror threat level to orange, the second highest stage, in February, Americans had visions of 9/11 all over again.

“The media zeroed into this heightened awareness and the ripple effect sent people off doing irrational things.

“Overseas travel was the furthest thing from people's minds during this time. Also, our US neighbours were coming to face to face with the reality that war with Iraq was a matter of when, not if.

“This version of the Gulf War was being brought much closer to home with the average American household. Enhanced media coverage again played a major role in elevating people's concerns.”

Bermuda Hotel Association President Norman Mastalir said occupancy rates for April were also down nine percent, but he was predicting a strong May and June will get the Island back on track.

Visitors are continuing to book at the last minute, and Bermuda can cash in on jittery nerves among American tourists who want to stay close to home due to the terrorism threat, he believes.

Mr. Mastalir told The Royal Gazette: “We were off nine percent at the end of April, but by the end of June, we project being up quite nicely over last year.

“We expect that by the end of June we will be back on track as far as occupancy is concerned.

“We've had a very strong May and June looks like bringing us back on track for the year.

Last year, arrival numbers were up slightly - but that came on top of the biggest drop in decades following the September 11 terrorist attacks in 2001.

Air arrivals for 2002 were 283,557 compared to 275,009 the previous year. Cruise numbers were 200,065, compared to 179,435. Overall, air and cruise arrivals were up 6.4 percent at 483,622.

The Tourism profile of visitors for the first quarter shows, based on exit surveys, showed 37 percent thought the Island was “above expectations” in terms of value compared with cost. A further 59 percent said it met expectations, with four percent saying it was below expectations.

Some 64 percent said they were “definitely” likely to return to Bermuda, and 76 percent would “definitely” recommend the Island.

For the hospitality of the people, 87 percent were completely satisfied. Those completely satisfied for personal safety were 84 percent, natural scenic environment (58 percent), seclusion and relaxation (48 percent), cuisine or dining experience (42 percent), and distance to travel (41 percent).

Dockyard continued to be the most popular location, attracting 79 percent of visitors, followed by St. George's (66 percent), Horseshoe Bay (42 percent) Gibbs Hill Lighthouse (37 percent), museums (34 percent), Bermuda Aquarium, Museum and Zoo (22 percent), Crystal Caves (19 percent), The Perfume Factory (17 percent), BUEI (11 percent), and Spittal Pond (nine percent).

A total of 79 percent were completely satisfied with transportation, and 70 percent completely satisfied with their accommodation.