Increased tourist arrival numbers and improved hotel occupancy over the last three months have given hoteliers something to smile about.

Mike Winfield, co-chairman of Bermuda Alliance for Tourism (BAT), chairman of BAT's airline committee and chairman of Bermuda Hotel Association, said he was pleased with the first quarter results.

On Wednesday Premier Dr. Ewart Brown announced that arrivals were up air arrivals for the first quarter were up 17.8 percent compared to last year, overall visitor arrivals were up 23 percent. He also announced that hotel occupancy was up 20.9 percent when compared to occupancy levels from January to March 2006.

He said: "There is no question that the first quarter results show significant improvements on last year and for that hoteliers are pleased.

"The new airlines and the lower airfares are impacting the market significantly.

"We are beginning to get the image of Bermuda in to the minds of our target market."

He said the arrival of Zoom's London to Bermuda service and the decision by British Airways' to slash their prices day's after the Zoom announcement could also positively impact arrivals numbers.

Mr. Winfield said: "With the dollar so low Bermuda is now an attractive place to come for the European market. Now that it is almost $2 for [POUNDSTERLING]1 it is quite attractive. I am looking forward to seeing business from these markets, particularly the German and Italian market."

But he added that for 2007 to be seen as a success it was important to also get the September and October arrivals back up to levels seen before 2001.

Prior to 9/11 and Hurricane Fabian those months were part of the Island's summer season and saw large numbers of tourists descend on the Island. Since then though numbers have dropped significantly in those months.

Mr. Winfield said the arrival figures for January to March are great because they have traditionally been seen as the low season and hoped to see the Department of Tourism build on this momentum.