The amount tourists spent last year fell by more than a fifth, according to figures released yesterday by Government.

For 2008, air visitor spending was $344.1 million, representing a drop of 22.3 percent on 2007 and in addition, hotel gross receipts stood at $273.3 million at the end of 2008, down nine percent from $300.3 million recorded in 2007.

All types of accommodation earned less for the year with small hotels being hit the hardest with a 24.9 percent loss in revenue, the figures show. Yesterday the Department of Statistics also released figures for the fourth quarter of last year which showed visitor spending fell by $25 million to $65.2 million in the last three months of 2008 compared to a year ago.

The report said: "This decline was spread across all categories of spending as outlays on accommodations and food fell 28.8 percent to $50.4 million, while expenditure on shopping, entertainment, and transport fell 23.7 percent to $14.8 million."

It added that total air visitors for the fourth quarter of 2008 fell by 19.7 percent to 49,966 when compared to the same period last year. The drop in air visitors contributed to a combined decrease of more than 100,000 cruise and air visitors to the Island during 2008, although Government has always stated that cruise ship arrivals would fall while work was being carried out on the new pier at Dockyard.

The global economic slowdown, elevated fuel prices and a reduction in flights to the Island all adversely affected air arrivals during the year, said the report.

Total visitors from Bermuda's largest tourist market, the United States, fell 22.9 percent to 33,588 compared to the fourth quarter of 2007. This marked the fourth consecutive quarterly decline in air visitors from that destination in 2008.

Similarly, fewer air arrivals were recorded from Canada (-8.6 percent) and the United Kingdom (-16.8 percent) during the quarter. Air arrivals from all other countries were down, with 409 fewer visitors this quarter.

The report added: "The drop in fourth quarter air arrivals translated into weaker hotel bookings at commercial tourist properties, which experienced double-digit declines in the number of guest bookings. Visitors staying at private homes also declined, falling by 6.1 percent in the fourth quarter of 2008."

And it said gross receipts for the hotel industry decreased 9.1 percent to $53 million in the fourth quarter of 2008.

All commercial tourists' accommodations experienced a decrease in sales receipts.