Tourism feels pinch of global economic decline

Published: Tuesday | March 24, 2009


HAMILTON, Bermuda (CMC):

Tourists spent more than a fifth less in 2008 compared with the previous year, according to new figures released by government.

Air-visitor spending in 2008 was US$344.1 million, a drop of 22.3 per cent over 2007, while hotel gross receipts stood at $273.3 million at the end of 2008, down nine per cent from $300.3 million recorded in 2007.

All types of accommodation earned less for the year, with small hotels being hit the hardest with a 24.9 per cent loss in revenue, the figures showed.

The Department of Statistics also released fourth quarter figures for 2008, which showed that visitor spending fell by $25 million to $65.2 million in the last three months of the year compared with 2007.

According to the report, this decline was spread across all categories of spending, as outlays on accommodations and food fell 28.8 per cent to $50.4 million while expenditure on shopping, entertainment, and transport fell 23.7 per cent to $14.8 million.

Severe drop

It added that total air visitors for the fourth quarter of 2008 fell by 19.7 per cent to 49,966 when compared to the same period in 2007.

The drop in air visitors contributed to a combined decrease of more than 100,000 cruise and air visitors to the island during 2008, although government had said cruise-ship arrivals would fall while work was being carried out on a new pier at Dockyard.