Visitor arrivals this year have continued to fall despite the Companion Flies Free promotion, according to Department of Tourism figures released yesterday.

Arrivals for the first six months are 210,298 - down 2.5 percent compared to the same period last year.

But Tourism say the figures are moving in the right direction because the second quarter arrivals were only down 0.5 percent at 172,241 as opposed to being 10.7 percent off for the first quarter of this year.

Also on the plus side, say Tourism, is that visitor spending averaged between $1,251 and $1,468, meaning the strategy of going after affluent visitors was working.

And 95 percent of those surveyed felt the Island met or exceeded their expectations when it came to value.

The Companion Flies Free promotion - where Tourism and Bermuda Hotel Association pay the cost of an extra flight when someone books - has generated more than 11,000 extra visitors.

But even so, in the critical benchmark of air arrivals, the numbers are down 5.3 percent for the year at 131,068, and off 3.4 percent for the second quarter at 93,399. The number of air visitors for the first six months has declined by 7,341 in total.

And in a development which should cause alarm to the tourism industry, the number of people visiting the Island for leisure dropped from 74 percent of air arrivals in the second quarter last year to 65 percent this year. Business and convention business jumped from 17 percent of air arrivals in the second quarter of 2002, to 22 percent for the same period this year.

"In looking at the overall picture, the challenge has always been to attract more of these (affluent) visitors to Bermuda," said the Department of Tourism statement yesterday.

"The Department of Tourism's overseas partners have reported very good results from the new advertising campaign which has received wide coverage in television, magazines and newspapers across the the core market for the last five months.

"These channels, as well as the department's direct marketing and public relations activities have brought Bermuda to the forefront of the minds of the potential traveller. We are encouraged by the results so far."

The exit survey by Tourism indicated that the 93,399 air arrivals in the second quarter spent between $113.7 million and $133.4 million.

In the customer satisfaction survey, 68 percent said they would definitely return to Bermuda, while 83 percent said they would definitely recommend the Island to others.