Visitor expenditure fell by more than a fifth in 2008, providing another indicator that tourism is flagging.

The drop in spending on accommodation, food, shopping, entertainment and transport brought $111.4 million less into the economy than the previous year.

According to the Department of Statistics, air visitors spent 23.5 percent less on accommodation and food, and 17.8 percent less on shopping, entertainment and transport in 2008.

Cruise visitors spent 18.2 percent less than in 2007.

Overall, vacation and business visitor expenditure was down 21.7 percent the equivalent of $111.4 million.

The figures were revealed in the Department's Quarterly Bulletin of Statistics, which provided a breakdown for the last quarter of 2008 and the year overall. The updated statistics report total expenditure by air visitors down from $442.7 million in 2007 to $344.1 million, while cruise visitor spending dropped from $70.5 million to $57.7 million.

Overall, vacation and business visitors spent 21.7 percent ($111.4 million) less.

Expenditure dropped from $513.2 million in 2007 to $401.8 million for 2008.

There was also a nine percent drop in hotel income. Despite a rise from $281,331,000 to $300,252,000 in hotel gross receipts from 2006 to 2007, last year this fell to $273,365,000.

Small hotels in particular appear to be struggling.

While resort hotels, cottage colonies and other properties such as guesthouses have reported a drop in income of between 6.7 and 8.8 percent, small hotels saw their gross receipts fall by 24.9 percent ($8,906,000) almost a quarter, on 2007.

Premier and Tourism Minister Ewart Brown was unavailable for comment last night due to being off-Island.

Shadow Minister for Tourism Michael Dunkley however, said: "The collapse of this Government's marketing of Bermuda tourism last year could have been lessened when it became clear in the late spring that we were headed for bad result.

"The Government ignored our call for urgent specific action to shore up results in our core markets, primarily in the US north-east."

In a statement on July 14, Opposition Leader Kim Swan said: "Bermuda Tourism officials must take drastic action to save the Island's tourism season.

"Sources overseas and among local hoteliers indicate this year is in bad shape in terms of hotel visitor arrivals. Hotelier forecasts for the months to come indicate little upward movement from the 13 percent slump recorded in the first quarter of the year."

He added: "Circumstances dictate the Government move on a rescue plan for the tourism season. It needs to move with strength and speed to support the industry."

Senator Dunkley said last night: "Why it did not move at the time is something the Premier has to answer for. Clearly, the North American sales operations were paralysed by his ill-timed, ham-fisted restructuring of the office an effort that in effect sidelined the entire Bermuda sales team in the midst of our usual high season.

"In every category in which management, planning and leadership can be measured, the Premier, as Tourism Minister in 2008, failed Bermuda."

Last week the Department of Tourism released new figures on air arrivals in 2008, after admitting numbers had been inflated since June 2008 due to a statistical error.

Yesterday's The Royal Gazette reported that October saw a 17.9 percent drop in arrivals on 2007, although Government previously reported this as a 2.2 percent fall.

November saw a 23.8 percent decrease, although this was originally reported as having the same level of arrivals.

And while a 6.8 percent increase in air arrivals was reported for December, the corrected figures now reveal 18.3 percent fewer visitors on 2007.

Last week Michael Oatley, Information Technology Office director, said the error was caused because long-term residents and work permit holders flying back to Bermuda had been counted as tourists.

At the same press conference Dr. Brown revealed overall air arrivals for 2008 fell 13.7 percent compared to 2007.