Visitor arrivals fell 12.2 percent in 2008, Premier and Tourism Minister Ewart Brown revealed yesterday.

With air arrivals down 4.6 percent and cruise arrivals down 19.1 percent, the overall number of tourists dropped from 663,767 to 582,980 for the year.

Those flying to Bermuda on vacation fell 10.1 percent, from 191,150 to 171,928 — overshadowing a 5.6 percent increase in business arrivals from 48,762 to 51,469; and a 21.1 percent rise in convention attendees from 18,776 to 22,733.

And the people that do come to the Island are also spending less in hotels, shops and bars and on leisure activities.

At a press conference yesterday, the Premier announced a battle plan intended to arrest the slide and help Bermuda weather the storm of the global economic crisis.

"The travel industry has been hit in 2008 amid the backdrop of a recession, soaring gas prices, a weaker US dollar and reduced flights by airlines," stated a Tourism Department booklet distributed at the conference to the media.

"Bermuda, like many other destinations, felt the effects of this."

Predicting further struggles ahead, the Premier told the media: "Forward looking visitor bookings tell us that Bermuda is being affected by the economic downturn in the United States. The weakening of the pound and the Canadian dollar is also expected to impact the two markets that have shown some buoyancy in recent times.

"Hotels are reporting that advanced bookings are pacing on average 20 to 30 percentage points behind the previous year."

Air arrivals were down from 305,548 in 2008 to 291,431, with the major problem a 9.5 percent slump in air visitors from the United States, down from 229,498 to 207,810.

Visitation increased from Canada, the UK, Europe and the rest of the world, but overall figures were down because the US dominates the market.

Government had predicted a fall in cruise visitors at the start of last year, due to the absence of small ships and the inability to accommodate more than one ship at a time.

The fall of 19.1 percent represents a drop from 354,024 passengers to 286,408. On this point, the Premier said: "Cruise arrivals are expected to increase by approximately 11 percent in 2009 with the completion of our new Dockyard cruise pier."

Dr. Brown said the pier, to be known as 'Heritage Wharf', will be a multipurpose cruise terminal with a new pier, ground transportation area for buses, taxis, minibuses and water sport tours, roadway improvements and a new visitor information centre. The first ship is scheduled for April 29, with a formal opening planned during Heritage Month.

Yacht visitors were up 22.6 percent from 4,195 to 5,141.

All kinds of accommodation suffered falling figures throughout the year, with resort hotels down by 15.8 percent from 145,015 to 122,139. Small hotels, cottage colonies, private clubs, inns and bed and breakfasts also struggled, with an overall decline of 17.5 percent.

Spending figures were released for the final three months of 2008, showing that leisure visitors spent $171 per night, down from $197 the previous year; and business visitors spent $221 per night, down from $310.

Average spending per person for the quarter dropped in accommodation from $841 to $766; in restaurants from $324 to $280; gifts and souvenirs from $73 to $61; other shopping purchases from $48 to $19; and recreational and other activities from $87 to $41.