drop in visitor arrivals compared to the same period in 1996.

The monthly visitor statistics, which are issued by the Tourism Department, show that cruise arrivals were up by 2.2 percent to 104,961 for the year, including July, but air arrivals were down by 5.4 percent to 221,074.

Figures for the month of July, historically one of the Island's strongest in the tourism industry, show that 42,777 people visited the Island by air -- down 4.4 percent from July, 1996 -- while 33,538 cruised to Bermuda.

The arrival figures are much lower compared to ten years ago when Bermuda's tourism industry was in its heyday.

In 1987, Bermuda scored a record total number of visitor arrivals for the year with 631,314 people travelling to the Island.

During July of that year, 57,420 people flew to the Island taking the year to date total to 279,841. Meanwhile 25,644 people took cruises to the Island during that month.

The figures for July, 1997 reflect a drop in air arrivals from the Island's key markets in the US.

For the year to date, arrivals from the Mid-Atlantic and North East states -- which include New Jersey, New York and Massachusetts -- are down by 10.28 percent to 83,692 and 5.24 percent to 40,067 respectively.

The figures for July, 1997 are also down in comparison to July, 1996.

Last month 19,301 people flew to the Island from the Mid-Atlantic states -- a drop of 10.43 percent -- and 5,407 visited from the North East states -- a drop of 7.03 percent.

Figures for US arrivals for the year to date stand at 177,911, down 6.61 percent from 190,500 during the same period in 1996.

And the number of Canadian visitors fell 8.82 percent, from 22,153 in 1996 to 20,199 in 1997, while UK and European arrivals were up 8.2 and 13.38 percent from 12,432 to 13,451 and 3,900 to 4,422 respectively.

Looking at air visitors by accommodation for the first seven months only cottage colonies registered an increase -- of one percent -- while the other categories showed drops.

Large hotels had a 3.7 percent drop, small hotels were down 10.7 percent and guest houses fell 20.8 percent.

When comparing July, 1997, to the same month last year, the categories of cottage colonies and private clubs were up by 1.4 and 5.1 percent respectively.

Meanwhile large hotels were down 2.9 percent, small hotels fell 8.4 percent and housekeeping cottages dropped 12.3 percent.

However, statistics regarding visitor bednights for July show they fell less than a percent in comparison to the same month in 1996 -- from 293,687 to 293,594.

But figures for the year to date show that bednights -- a key indicator of visitor spending -- are down about five percent compared to the same period last year.

Information gleaned by the department from the Bermuda Airport Study shows that in the spring of 1997, 44 percent of the visitors were repeat visitors while the remaining 56 percent were first timers.

Over half of these visitors earned $100,000 or more a year while at least two-thirds earned $75,000 or more.

FARMER TO STAY LONGER VIP Farmer to stay longer US Consul General Bob Farmer's tour of duty in Bermuda has been extended.

Mr. Farmer, who was expected to leave towards the end of this month following his third anniversary as the US government's representative on the Island, will now leave in December.

It is understood the extension is due to delays in getting through paperwork with the next Consul General, Nebraska businessman Vin Gupta.