Tourism could be in for two to three grim years, according to a business leader, after new figures show competitors continue to attract more tourists while Bermuda has seen a decrease in visitors.

While the Government has blamed the credit-crunch and soaring oil prices for falling tourism numbers, regional competitors are still managing to increase the number of visitors flying to their islands.

Out of 10 countries around the Caribbean Bermuda is ranked ninth seeing a ten-percent drop in air arrivals between January and May 2008 compared to last year and one of only three countries which has seen a drop in arrivals during the period.

And Philip Barnett, President of the Bermuda Chamber of Commerce, said Bermuda needs to brace itself and change its attitude if it wants to see improvements in the industry. "We need to realise that a number of properties have closed, there are less beds, and we have to be fully committed to reviving tourism. At the moment in a recession it is hard to get the capital for these large hotel developments. It is going to be two to three years before one of these big-name hotels comes on line.

"It is going to get worse before it gets better. But let's be supportive of what we need to do to bring these developments. While sustainable development is important so is tourism."

And Mr. Barnett said it was imperative the Island focused on tourism, which its competitors are currently doing. He added that Bermuda's position as an international business location of choice could change depending on the outcome of the next US election.

"If they decide to put a bullseye on us things could change dramatically and the only viable other option is tourism. I think Bermudians need to get behind the industry and stop poo-pooing it. You can make good money, there are bartenders making $80,000 a year. Parents need to stop pushing their children away from it, if things change this is the main industry."Do we want a bunch of mediocre actuaries or some fantastic waiters and chefs?"

Shadow Finance Minister Bob Richards one of the main problems Bermuda had was that its Tourism Department was not running smoothly: "These other islands are drawing from essentially the same market as we are. "The difference is the turmoil that has existed in the Department of Tourism, particularly in the North American office. Preceding the latest lay-offs there was great unhappiness among Bermuda's representatives and in 2007 there were many resignations.

"These problems have hurt the department's performance and exacerbated the effect of weak consumer confidence pervading our market."

Mr. Richards continued that previous "crowing" over increased tourism figures were inappropriate, as was the Premier's tag line that Bermuda had entered a platinum period of tourism: "The poor numbers in the hotel figures underscore the point. Tourism is still in crisis. Dr. Brown's chickens are coming home to roost. The Platinum Period is mere wishful thinking.

"The assessments shed new light on the situation, particularly when it comes to Bermuda's competitors. In a July 4 Department of Tourism press release, it was stated: "As is the case in other local travel sectors around the globe, there is an indication that the US economic slowdown is affecting travel patterns. In addition, factors such as the high cost of fuel have also had an impact on visitor arrivals."

A recently released Caribbean Tourism Organisation list of air arrivals showed that out of ten countries with up-to-date figures only Grenada, Bermuda and Guyana saw a drop in arrivals by one percent, ten percent and 26 percent respectively for the five-month period.

Meanwhile Curacao reported a 40-percent surge in arrivals. Cancun, Cayman, Jamaica, Antigua and Barbuda all reported approximately a nine-percent increase in arrivals for that period as well.

The Department of Tourism declined to comment, citing its quarterly bulletin on tourism next week.