of summer for the tourism industry.

A decrease in air arrivals from the US and Canada compared to last July and on the year so far, led to the lowest number of airline visitors since April.

And the Island's small and large hotels bore the brunt of the drop, losing 15 and 2.9 percent of the business they had last year.

But while the news is bad for the traditional hospitality industry, cruise ship business continued to outstrip all previous numbers.

In July, 17 percent more cruise passengers arrived than the same period last year -- bringing the total to 34,022 people, up nearly 4,000 on the preceding two months.

Meanwhile, visitors from the UK and Europe continued to rise by six and 21 percent, respectively in July. Those increases helped offset US decreases of 3.83 percent against the same month last year and a fall of six percent in Canadian guests.

For the year so far, 213,854 visitors came by air -- down 1.37 percent on 1998. And 110,070 cruise passengers to date in 1999 -- an increase of eight percent -- brought the year to date total for all visitors to 324,673.

But while more cruise visitors were spending nights on the Island, hotels were not experiencing a bountiful July.

Large properties saw a fall of nearly 3,500 bednights for the month -- continuing a yearly fall of five percent, nearly 30,000 below the 1998 number to 114,572.

Small hotels suffered a 15 percent loss for July, dropping to 23,884 bednights and 142,059 for the year.

But there was good news for guest houses, who saw a 48 percent rise in business -- bringing them nearly 500 more bednights to a July of total of 1,442.

Cottage colonies also saw an increase, whilst private clubs, housekeeping cottages and other small properties all saw a fall in the number of nights sold.

On the year to date, all accommodations, bar guest houses, experienced a fall in business between three and nine percent.

Total bednights, across all properties, fell last month by 2.29 percent and on the year so far by 3.79 percent. Bednights are considered to be a better indication of visitor spending that total arrivals.

According to the Department of Tourism, Airport surveys revealed a high degree of satisfaction from visitors during the spring period. Close to 80 percent said they would like to return for another holiday.

But the Island's taxi and shopping fell significantly in ratings from vacationers. The ratings dropped by nearly 20 and 13 points, respectively, to 47 and 74 percent.

Of Bermuda's US markets, there were increases in visitors from Massachusetts, New Jersey and Vermont, but falls in New York, Pennsylvania, Florida, Georgia and Maryland.

TOURISM'S UPS AND DOWNS These are the latest ups and downs in tourism figures released for July: Down: Air arrivals from the US, by 3.83 percent.

Up: Air arrivals from Europe, by 21 percent.

Up: Cruise passengers, by 17 percent.

Down: Bednights in large hotels, by almost 3,500, .

Down: Small hotel bednights, by 4,200 or 15 percent.

Up: Guest house bednights, by 48 percent, or 500.

Down: Total bednights, by 2.29 percent and by 3.79 percent for the year.