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Good news, bad news on visitor spending

Overall tourism spending is in decline, although fewer visitors are spending more money per head, official figures reveal.

Visitor spending of $378.8 million in 2002 still lagged behind 2000, when it was $431 million, $476.4 million for 1999, and $486.8 million for the year before.

The 2002 total was ahead of the $350.5 million figure for 2001, but that year is considered a write-off because the September 11 terrorist attacks wiped out the season.

But there was a glimmer of hope for Government as it pursues its strategy of attracting big-spending high-end tourists.

The figures show visitors are continuously spending more each year while in Bermuda.

Numbers compiled by the Department of Tourism based on the Archer Report, the Total Marketing and Communications report this year on the economic impact of tourism on the economy, and exit studies of visitors show the trend is moving in the right direction.

Average visitors spending for 1997 was $1,301, rising to $1,348 in 1998, $1,342 in 1999, $1,369 million in 2000, $1,300 in 2001, and $1,400 last year.

The mean spending by air passengers has continued moving generally upwards, although spending by cruise ship visitors is on the way down.

According to the Department of Tourism figures, air passengers spent an average of $279 per day in 1997, going to $286 the following year and 1999, $297 in 2000, $279 in 2001, and $305 last year.

For cruise passengers, however, average spending per day is $164 in 1997, $166 in 1998, $152 in 1999, $151 in 2000, $161 in 2001, and $157 last year.

The numbers should be put in context of the overall decline in air arrivals over a long period and the continued rise in cruise passengers.

Overall arrivals have dropped from 562,680 in 1997 to 557,087 the following year, then 548,668, 539,865, 458,063 for 2001, and 484,034 last year.

Air numbers have seen a dramatic drop over the period from 380,795 in 1997 to 283,969 last year, while cruise numbers have jumped from 181,885 in 1997 to 200,065.

The drop in air arrivals has been blamed on a number of factors such as the sluggish state of the US economy to international terrorism, and the build up to war in Iraq.

But there has also been a slump in the number of hotel rooms in Bermuda, from 8935 in 2001 to 8809 last year.