Tourism arrivals dropped by more than eight percent during the first quarter of this year as people started feeling the effect of the economic slowdown, according to the Department of Tourism.

The arrivals numbers from January to March were down 8.11 percent compared to the same period in 2007. Meanwhile hotel occupancy was down 13 percent for the period compared to 2007.

The Department of Tourism attributed the slump to the US economic slowdown and said the high cost of fuel has also had an impact on visitor arrivals.

Premier Ewart Brown, who is also Minister of Tourism, said: "The first quarter visitor statistics reveal Bermuda is not immune to the economic slowdown in the United States.

"Fortunately for us, our core market remains affluent travellers who have proven less susceptible to an economic slowdown. If not for that silver lining I suspect the first quarter statistics would have been worse."

In total 44,845 visitors arrived on the Island during the three months, compared to 48,801 for the first quarter of 2007. A drop in air arrivals accounted for much of the slump – the number of people flying in fell by 4,096 people.

Last night Opposition Leader Kim Swan, who is the Shadow Minister of Tourism, said: "The first quarter results shows a significant drop in business and sends a warning signal that Bermuda tourism is in for a rough year. All our sources both on the Island and overseas have been telling us this for some time.

"I find it curious the Government waits until the completion of the second quarter to provide first quarter results. This delay of information hinders the ability of stakeholders to make informed decisions, such as a business needing to base its orders on anticipated tourist visitors, and its failure to release valuable stats in a timely basis."

The Department said that while there has been a slowdown from the US market, the UK and Canadian markets have remained steady. Visitors from Canada are up 1.5 percent, or 86 people according to research by The Royal Gazette and visitors from the UK are up 0.01 percent, or four people according to the research, for the first quarter.

The Department also revealed that visitors staying at resort hotels for the first quarter of 2008 are down 13 percent.

With many US companies feeling the pinch convention travel was heavily hit, down 40 percent compared to 2007 to 2,261 people — roughly the same figure seen in the first quarter of 2006. However, the Department of Tourism said that last year's convention business was particularly strong and up 40 percent on 2006.

Cruise visitors remained steady, reporting a slight increase of just over one percent.

The estimated visitor expenditures for the first quarter of 2008 ranged from $42.3 million to $50.7 million, with average per person expenditure ranging from $1,013 — $1,216, up from a range of $979 — $1,088 in 2007 according to the Department.

Premier Brown said: "It's encouraging to see that visitors coming to Bermuda consistently spend more when they get here. That sort of injection is critical for all of our tourism related businesses. I'm also encouraged that visitors coming to visit during this economic downturn are staying more than six nights per visit on average. That is on par with previous years."

Mr. Swan said he believed the Department needed to concentrate on key markets to prevent a further downward trend in arrivals: "We have been urging Dr. Brown to "fish where the fish are" and not to spread valuable Tourism dollars into unproven markets or markets that do not generate returns that justify the spending. We need to concentrate our spending in markets that can fill our hotel beds and believe Tourism must adjust its spending accordingly.

"The first quarter results have helped strip away the spin that has attached itself to official statements on tourism. For too long the Premier has been presenting Bermudians a much more positive, upbeat image of the state of Bermuda tourism than is the reality."

The statistics provided by the Department do not include a breakdown of how many people came for business or leisure travel, nor do they state the number of visitors arriving from the US, UK or Europe.

The Department has recently stated that it will no longer give out in-depth statistics until after the Premier's quarterly media luncheon. Previously The Royal Gazette has obtained them independently of the Premier's luncheon. The Department said the next quarterly media luncheon will be "later this month".