Government blamed a new form for a statistical mistake which inflated air 2008 arrivals by nearly 28,000.

At a press conference yesterday Premier Dr. Ewart Brown revealed that air arrivals did not fall 4.62 percent compared to 2007 they actually fell 13.7 percent compared to 2007.

The Premier said: "On Tuesday of this week I was advised that due to the implementation of the new Department of Immigration Border Management System last year, the data collection process was compromised in June.

"At that time electronic manifests were introduced, eliminating the need for all travelers to complete departure cards and for Bermudians to fill out immigration cards.

"The process change with immigration cards caused an overstatement in the number of visitors staying in private homes."

Dr. Brown added: "As the Minister of Tourism and Transport, and as the Head of Government, I was obviously displeased when I learned the full extent of this problem at a meeting on Tuesday afternoon.

"I had to fight the temptation to raise my voice. I personally understand how important Tourism is to the Bermuda economy and I know many people rely on the statistical information we provide. That is why it is critical that we regain the public's confidence in our ability to accurately report visitor numbers going forward."

He said that in an effort to shore up confidence, he had instructed the Director of Tourism to contact the executive leadership of the Bermuda Hotel Association to explain what happened and why.

"I also asked him to explain how we changed the current way we capture numbers to ensure accurate results in the future," added the Premier who said he would appoint a Confidence Committee to ensure that our transition into this new system was handled properly.

Michael Oatley, Director of Information Technology Office, said the error was caused by incorrect classification of some returning residents (i.e. long term residents and work permit holders) as visitors.

The error occurred when the new immigration card came in last June as the new system required returning residents to file the same card as visitors.

That data is entered into a computer system used by Tourism to produce air-arrival reports as well as conduct market analysis. Prior to this returning residents filled out the back copy of the old immigration card, or B card, when returning to the Island. This was separated from regular visitors and never entered into the system. With the change, returning residents were processed as visitors in error.

Mr. Oatley said: "The obvious question is how was this error overlooked? While the volume may appear large over a six-month period, it is very small when viewed on a daily or monthly basis.

"In addition, the mistake occurred over the high season which reduced the noticeable impact even further. In short, the reasonableness checks carried out on a monthly basis showed a decline in visitors that were in-line with estimates and hence the data was deemed acceptable.

"However, as time passed, results for the last quarter of the year and the full year were analysed, leading to identification of the mistake. The incorrectly coded records have been reprogrammed, and are now correct."

More thorough controls are being introduced, particularly when a project involves coordination between departments, said Mr. Oatley. Tourism reports will now be reconciled with air manifest and immigration data to identify anomalies.

And a new computer system has been developed to ensure travelers are classified correctly when they are processed in the airport arrival hall.

Rozy Azhar, Acting Chief Immigration Officer, said: "The new system for capturing the visitor data is a web-based system that will be loaded at the end of each day with the data and electronic images of the cards from passengers who were processed in the border management system that day. Only the data relating to visitors will be loaded into the new system. This will immediately eliminate errors that have occurred."

The system will reduce the amount of information that has to be input by the data entry staff, allowing them the time to collect even more information from the card that will be useful for market analysis by the Tourism Department, such as the names of the hotels and guest houses where tourists are staying, said Ms Azhar.

Last night Opposition Tourism spokesman Michael Dunkley said: "We appreciate hearing of the Premier's 'commitment' to accurate reporting of tourism figures something we have been calling for for years.

"But we have to say his statement on the need to 'regain the public's confidence' in his ability to accurately report visitor numbers is unbelievably ironic and telling. He has been the dissembler-in-chief when it comes to visitor numbers."

Sen. Dunkley said over the past five years, Tourism reports blurred the distinctions between arrivals, particularly visitor and business arrivals, to present a much rosier picture of the industry than was the reality.

Industry confidence in the official numbers plummeted, as government spin replaced reality, said Sen. Dunkley.

He added the revised statistics make 2008 one of the worst performing years for Bermuda Tourism on record, putting it near the bottom of all 30 Caribbean island destinations in 2008.

Sen. Dunkley added: "This minister's record is one of continuing failure. His interfering, hands-on management of the portfolio screams for the creation of a Tourism Authority that can provide professional rather than political direction for the industry."

The Authority's primary goal would be to make Bermuda competitive again as a tourism destination, and its business-based mission will make it accountable to that goal, added Sen. Dunkley.

"Accountability for Bermuda Tourism's performance has been missing for too long."