decrease in the use of Government ferry services in June.

According to Government statistics released yesterday for the month of June, passenger levels dropped by 3.3 percent, compared to those of June 1996.

This reflected an overall decrease of 2,190 passengers, bringing the total down to 64,935 from last year's 67,935.

The Paget/Warwick route in June last year ferried some 30,036 passengers across Hamilton Harbour, but in June that number fell to 27,076, highlighting a 9.9 percent decline.

However, passengers travelling on the Somerset ferry increased by a marginal 2.5 percent, representing 770 more people using this particular service.

The use of the new summer time east/west ferry, now in its second month of operation, also increased by some 780 passengers.

Department of Marine and Ports deputy director Michael Dolding attributed the increases to the weather.

"People won't travel all the way to Dockyard or St. George's unless the weather's good,'' he said.

On the other hand, in reference to the overall decrease, Mr. Dolding said that 90 percent of ferry passengers were visitors, therefore a slide in tourism will subsequently affect the ferry service.

"Ferry figures are usually a reflection of tourism statistics,'' said Mr.

Dolding.

But he described June's reduction in passenger levels as "mere fluctuations''.

July's figures will be the interesting ones, Mr. Dolding noted. That was the month of Government blue collar workers' work-to-rule which impacted on ferry services.

OCCUPANCY RATES RISE SLIGHTLY TOU Occupancy rates rise slightly Bermuda's hotels and cottage colonies operated at 74.3 percent capacity during the month of July, six-tenths of one percent ahead of same period last year.

Bermuda Hotel Association president Dennis Tucker said that while he was pleased occupancy rates didn't drop, he wasn't entirely happy.

"July has not been a good month for us; we're not where we would historically expect to be based on our past performance. Right about now we should be running in the 80 percent range.'' And while he was "relieved'' to see even marginal improvement over last year, Mr. Tucker conceded he was "disappointed'' at the same time.

The BHA, meanwhile, is projecting an occupancy rate of 66.6 percent for August, compared to 65.2 percent for last year, and 47.7 percent for September, a slight improvement over last year's 44.7 percent the year prior.

"In considering the viability of the industry, we have to be over 70 percent (occupied),'' said Mr. Tucker.