Government figures reveal.

But the improving picture was disrupted by the massive mid-March snowstorm that paralysed the US east coast and closed airports.

US air arrivals rose 0.9 percent during the month despite a huge 11.7 percent drop out of the US northeast and a 6.4 percent drop in southeastern states.

Assistant Tourism Director Mr. Peter Smith attributed those drops to the March 12 weekend storm.

"We're confident that the storm really hurt us,'' he said when asked to explain the business drop out of the US northeast.

"Airports were closed. The northeast was in a state of paralysis. Airlines were heavily booked for Bermuda. It was not a question of airlines being delayed a day but a matter of us losing business because of it.'' Away from the eastern seaboard, US business was up significantly. Overall, Bermuda air arrivals were up 3.5 percent to 25,615 for the month. Visitors from both Canada and the United Kingdom grew although European visitors fell 12 percent to 359.

The average length of stay also increased during the month, meaning visitors spent more.

And some sectors of the hotel industry showed significant improvement. Cottage colonies business jumped more than 13 percent. Guest houses, whose lower rates and efficiency units appeal to cost conscious travellers, saw their business rise 31 percent with 286 visitors during the month.

March also saw the Island's large hotels register nearly six percent more business than last year. More significantly, the number of bednights booked at their properties rose 11.7 percent, meaning guests were staying longer and spending more.