The Island's tourism industry took yet another knock yesterday with the release of the latest visitor statistics.

And the figures have fuelled speculation that the outcome of the Rebecca Middleton trial may have damaged the Island's reputation as a tranquil, law abiding resort.

Air visitors for January dropped by 12 percent compared to the same figure last year, with the shortfall due to a dramatic drop in the number of North American visitors to the Island.

The month saw a total of 7,468 visitors from the US arrive on the Island -- more than 700 fewer than the corresponding month last year.

But what is bound to cause concern among tourism bosses is the collapse of the Canadian market in January, which saw visitor numbers drop by nearly one third on the same month last year.

January saw 1,552 Canadian visitors arrive on the Island, compared to more than 2,300 in the same month last year -- a drop of 32.46 percent.

The slaying of Canadian teenager Rebecca Middleton in 1996 shocked the Island.

And last December some Canadians called for a boycott of the Island after Middleton's accused killer, Justis Smith, was sensationally acquitted of the crime.

The one positive statistic is that the UK market continues to grow, with January seeing more than a 25 percent rise in visitors. Just over 1,000 tourists from the UK called on the Island in January, along with an additional 201 from the rest of Europe.

Last night Tourism Minister David Allen agreed that the Middleton case could be partly responsible for the decline in Canadian visitors.

But he added that the weak Canadian economy probably played a more significant role in the disappointing statistics.

He added that, while everything would be done to nurture the blossoming European market, the department would not be turning its back on the US and Canada.

"We consider the UK market very valuable but we also see a need to beef up our presence in Canada,'' Mr. Allen said.

Mr. Allen said that he was optimistic about the future, outlining a number of promotions that would boost the Island's profile in the US in time for the summer season.