Premier Dr. Ewart Brown unveiled the latest tourism figures yesterday, declaring there was 'No Vacancy'.

Dr. Brown, Tourism and Transport Minister, said the arrival of more air carriers to the Island was resulting in demand for hotel rooms outstripping supply, and that greater investment in accommodation was needed.

At a press conference yesterday, the Premier also announced that Zoom Airlines have now gained UK Civil Aviation Authority approval to fly shorter routings.

The flight corridor across the Atlantic to the UK will take effect from August 10.

"This will cut Zoom's flight times down from the present 8 hours 30 minutes to the standard 6 hours 45 minutes," he said.

Dr. Brown summed up the second quarter tourism statistics as: "No Vacancy.

"If there was one overwhelming theme for the months of April, May and June, it's the fact that there was 'no room at the inn' during some periods of our second quarter.

"In some instances trying to book a room was near impossible." He said hotel occupancy levels had risen to 84 percent, compared to 78 percent last year an increase of 6 percent. This is however, a drop on the buoyant 20.9 percent jump recorded in April, when Dr. Brown reported on the first quarter figures compared to January-March 2006. The Premier said more tourist accommodation was badly needed.

"The lack of hotel inventory also had a trickle-down effect on our visitor arrival numbers, with our prospective visitors unable to book a Bermuda vacation," he said. "As a result, air arrivals for the second quarter were down slightly by 1.5 percent, with 99,594 visitors arriving on Island this quarter, compared to the 101,133 during the second quarter of 2006.

"The fact is, Bermuda has almost 11 percent fewer hotel rooms during this quarter over the same period last year." Dr. Brown said this was partly due to the "closure of the Harmony Club and Wyndham Hotels for redevelopment".

He added that the average stay had also fallen from 5.87 nights in the second quarter from 6.04 nights at the start of the year. However, hotel occupancy rates were up by 84 percent compared to 78 percent last year.

Visitors were also spending more. Second quarter expenditure fell between $127.1 million and $146 million, compared to $115.1 million to $133.9 million last year. Breaking it down, this equated to $1,276-$1,466 per person, compared to last year's figures of $1,138-$1,324.

Dr. Brown said cruise arrivals had increased by 6.32 percent on last year the equivalent of another 7,744 visitors. The total for the second quarter was 130,304 arrivals by cruise ship, and 232,806 visitors overall to the Island. "Combined total visitor arrivals were up by 1.77 percent for the second quarter of 2007, with 232,806 visitors coming to the Island during this time compared to 228,768 last year," said the Premier.

In April, Dr. Brown reported the first quarter results as showing visitor arrivals up 23 percent a much bigger increase on the previous year. Air arrivals for the first quarter were also up 17.8 percent compared to 2006.

Reiterating the need for more beds and greater choice for tourists, Dr. Brown said: "We are now finding ourselves in the midst of a mass transition period of hotel redevelopment. This second quarter showed the effect of what a limited hotel inventory can have on a vacation destination.

"As the global tourism industry continues to raise the bar of excellence in hospitality standards, with bigger properties featuring luxury amenities, and new and emerging regions getting into the tourism business, it has become apparent to our local industry partners that in order to maintain their competitive edge they must keep pace with the demands of our growing industry." Dr. Brown said that several hoteliers had made "that much needed capital investment in their hotel product". He referenced the $3.2 million refurbishment at the Fairmont Hamilton Princess; the upgrading of rooms at Willowbank; and the renovations at Cambridge Beaches.

This all pointed to a "hotel development renaissance", said Dr. Brown. Hinting at more hotels on the horizon, he said: "We are confident that by 2010 we will see exceptional new infrastructure that will make a substantial contribution to enhancing and modernising our tourism product. In just a little over two years from now we will have reached our optimum goal of 10,000 hotel beds. "We expect that when new properties like Newstead, Harmony, Ariel Sands and the Ritz Carlton are completed, we will have raised our hotel competitiveness to new heights," he said.

Dr. Brown said he wanted to put "the 'Bermudian' back in Bermuda Tourism'".

"I am talking about the charm, the genuine hospitality, and the very essence of what makes Bermuda tourism so special," he said.

The Ministry of Tourism is now working with the Ministry of Education to include tourism in the school curriculum. "The future is with our children. They have the interest, the desire and the hunger. Our job is to add fuel to their fire, so that the fire doesn't die out," said the Premier.

Summing up, the Premier said: "Bermuda Tourism is proving to be a force to be reckoned with, a solid Second Pillar, generating on average between $358 and $427 million a year for Bermuda's economy.

"Our challenge in the months and years ahead will be to maintain this success. In order to do that we must not rest on our laurels, instead we must redouble our commitment and effort to remain at the top of our game.

"These are exciting times for Bermuda tourism, and significant opportunities await us," he said.