Air, cruise and yacht visitation to Bermuda between April and June this year increased when compared to 2009.

Air arrivals were the second worst in the last three decades while cruise arrivals were the highest in the last three decades.

Hotel occupancy also rose, in large part due to the closure of hotels within the past 12 months.

Premier Ewart Brown outlined the state of tourism in the second quarter to industry leaders yesterday. In total 252,734 visitors came to the Island during the three-month period, a 25 percent increase compared to 2009.

The large number of tourists cruising to the Island spurred the growth on. Dr. Brown said: "171,295 passengers sailed to the Island which represents the largest second quarter total ever." The cruise visitors accounted for 67.7 percent of overall arrivals for the three-month period. The number of air visitors to the Island was up three percent — to 77,512 — during the quarter when compared to the same period last year. The air arrivals figure for 2009 was the worst on record in 30 years. [See side bar, page 3 for a breakdown of the statistics].

Speaking of air arrivals, Dr. Brown said: "The positive affects of additional airlift out of the Canadian market have seen air arrivals from this region increase by an astounding 42 percent, an increase of 3,060 Canadian visitors to Bermuda.

"Numbers out of Europe were positive as well, with an 18 percent increase in European visitors." The Bermuda Hotel Association member reported an 11-percentage point increase in occupancy figures, which averaged 69 percent this year.

The Premier said: "June's occupancy of almost 88 percent, in major hotels, is the highest recorded occupancy percentage in the hotel industry in this category, in any given month, going back to the bumper year of 2007.

"The reduction of rooms, approximately 235 rooms or eight percent in the past 12 months, clearly made business better for the existing hotels.

"Yet this, along with lower average rates, continues to be a source of concern as the declining economies of scale provides the challenge of not enough rooms in key demand periods."

As for hotel developments Dr. Brown said he had faith that good news on the former Club Med development would be made public before he steps down at the end of October this year. Looking ahead Dr. Brown said the cruise industry would continue to strengthen.

"I am pleased to announce Holland America Line's Veendam will return to Bermuda in 2012. The premium cruise liner is scheduled to make 25 calls from New York, serving St. George's and Hamilton. "The Veendam has a capacity of approximately 1,400 guests, and is projected to bring 34,000 visitors to Bermuda in 2012, making a financial contribution of up to $7.5 million to Bermuda's economy.

"Also, this quarter we were successful in attracting Celebrity Cruises to return to Bermuda for the 2011 season. Celebrity Cruises was a major part of our cruise product in the early 1990s and we are pleased to have successfully negotiated their return."

And he said he hoped the third and fourth quarter arrivals would be stimulated by events such as the Bermuda Tango Festival, the 2010 Bermuda Music Festival, Perfect 10 wedding promotion, PGA Grand Slam and the Bermuda Goodwill Golf tournament.