The US media's coverage of Tropical Storm Bertha led to a big loss in revenue for Bermuda's hotel industry.

That is according to Michael Winfield, president of Cambridge Beaches, who claimed takings were down, due in part to exaggerated stories about the impact Bertha would have on the Island that appeared in the American media.

Meanwhile, Frank Stocek, chairman of the Bermuda Hotel Association and general manager of Elbow Beach, said Bermuda's tourism industry was still performing well considering the current economic climate, and despite business being down slightly in 2008 on last year, it was more than holding its own for July and August.

However, Mr. Winfield, president of Cambridge Beaches, said a shortened holiday season combined with the impact of Tropical Storm Bertha had hit revenues hard.

"What we have got is a shortened season, so that business looks reasonable until about the third week of August and then we see a precipitous drop in occupancy beyond that," he said.

"Traditionally from mid-August to mid-October at those levels the hotels managed to do relatively well, but now the season seems to run from the end of May to the end of August, so it is a dramatically shorter season and as a result revenues and down and the ability to reinvest is a challenge and something we need to address.

"Secondly, there was Bertha, where we lost a considerable amount of business and one aspect of that was the US media was reporting potential calamitous events happening in Bermuda, none of which amounted to much in the end.

"Bermuda lost significant amounts of business for what amounted to one day of bad weather."

Mr. Winfield said he was keen to tap into business from the UK and Europe, citing a favourable exchange rate, a strong economy versus the US economy, and a different way of thinking to the Americans about holidays, as the main reasons why it benefits Bermuda.

"I am a long-term advocate of the UK and Europe business and that is why I am pushing that side of the business very hard," he said.

"Their exchange rate with Bermuda is good, the woes of the US economy are not as dramatic there, and the psychology of the UK and Europe is different in that they will not sacrifice holidays, unlike in the US when it is first thing they drop during hard economic times."

Last week, The Royal Gazette reported a 10-percent decline in hotel occupancy in May and a four-percent drop in April, compared to the same months last year, according to the latest Government statistics, with Norman Mastalir, managing director of Fairmont Hotels Bermuda, saying that business was behind schedule so far this year, linked to the current state of the US economy, while he was also concerned about numbers for the last quarter of 2008 in a US presidential year, as well as the disruption caused by Tropical Storm Bertha.

This follows a 13-percent fall in the number of visitors staying at resort hotels during the first quarter of this year compared to 2007, according to figures published yesterday in the Goverment's Quarterly Bulletin of Statistics for the first three months of this year.

Visitors staying at small hotels, housekeeping accommodations, and guest houses were down 13.7 percent, 3.9 percent and 12.4 percent respectively. However, visitors residing in private homes were up 4.3 percent year-on-year.

Gross hotel receipts reached close to $37 million, down $5 million on the previous year, while the industry as a whole employed 2,456 workers at the end of January 2008, up 0.2 percent on the prior year.

An analysis of revenue earned by major resort hotels revealed that room sales accounted for slightly under 55 percent of total revenue in the first quarter of this year, while revenue generated by hotel room bookings at major resort hotels totalled $18.3 million, a $1.7 million decline on the total during the same quarter in 2007.

Mr. Stocek said occupancy rates fell by three to four points, but there was some light at the end of tunnel, with the remainder of the year looking strong. "August is looking far better and September and October are similar to last year, even if they are a little bit down on last year," he said.

"Although Bertha didn't help, not because of damage caused, but in lost bookings, the future months are looking okay."

He said it was too early to call whether the Island's tourism industry might pull out of its current mini-slump, but reckons Bermuda's target market of high-income earners will continue to help boost the sector.

"I think the economic situation might not get better for another year or so and I think it is just going to be similar to last year," Mr. Stocek said.

"We seem to be sheltered here in Bermuda with our clientele tending to be in the up-market scale and they will still come whether gas is $4 a gallon in the US or not.

"Where it is impacting is group business is down and it remains to be seen what happens in the fall.

"In terms of tourism and marketing, there is a lot of promotional activity planned for the future to really help drive more business."