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Bermuda Online Travel & Tourism Guide

Our exclusive introduction to our Atlantic Islands in more than 125 websites

By Keith Archibald Forbes (see About Us) exclusively for Bermuda Online

To refer to this file use "bermuda-online.org/tourism" as your Subject.

Tourism picture 2010

In addition to the weekly callers, a number of premium cruise lines will call in Bermuda in 2010.  The number of cruise calls is projected to increase from 138 in 2009 to 154 in 2010. Also, the number of cruise visitor arrivals will increase from just over 318,000 in 2009 to just shy of 337,000 in 2010. This represents a six percent increase. Heritage Wharf, in Dockyard, was expected to generate $34 million through government fees, on-Island spending by cruise visitors and crew as well as shore excursions taken by cruise visitors In total, the cruise market was anticipated to contribute more than $70 million to Bermuda's economy in 2010.

Holland America Line's cruise ship Veendam will return to Bermuda in 2011. The Veendam is scheduled to make 24 calls from New York, serving St. George's and Hamilton. Norwegian Cruise Lines has also committed to Bermuda for 2011. They will run two ships from the US North East coast, both holding more than 2,220 passengers.

The Tourism Department planned to support hotels and niche market promotions and continue its successful digital marketing strategy. The department is currently in talks with JetBlue to increase the number of flights from Boston. 

The launch of WestJet's service out of Toronto on May 3, 2010 is considered by Tourism to be the most significant change in this market in the past 25 years. Canadian advertising will be increased, with the appointment of a sales representative in this market in the coming weeks. The Department is also looking to hold a major event in 2010, in hopes of positioning the Island as a location of choice for destination weddings. 

2009 results

2008 results

Visitor arrivals fell sharply in 2008. With air arrivals down 13.72 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.

The Premier announced a battle plan intended to arrest the slide and help Bermuda weather the storm of the global economic crisis. With the travel industry affected in 2008 amid the backdrop of a recession, soaring gas prices, a weaker US dollar and reduced flights by airlines, Bermuda, like many other destinations, felt the effects. Forward looking visitor bookings indicate 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.

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. 

The amount tourists spent in 2008 fell by more than a fifth, according to figures released by Government. For 2008, air visitor spending was $344.1 million, representing a drop of 22.3 percent on 2007 and in addition, hotel gross receipts stood at $273.3 million at the end of 2008, down nine percent 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 percent loss in revenue. This decline was spread across all categories of spending as outlays on accommodations and food fell 28.8 percent to $50.4 million, while expenditure on shopping, entertainment, and transport fell 23.7 percent to $14.8 million.

Excluding private, unlicensed premises, Bermuda has 47 official guest accommodation properties comprising hotels, guesthouses and cottage colonies and about 134 restaurants.

2007 results

The Bermuda Government says it is "focused on attracting quality visitors" (those with incomes above $150,000). Bermuda saw a record breaking number of visitors to the Island in 2007. Bermuda had 663,767 visitors, an increase of 3.44 percent from the 641,717 visitors who arrived in 2006. Total air arrivals reached a 7 year high with 305,548 visitors arriving on island in 2007, up 2.2% from the 298,973 visitors in 2006. An Airport Exit Survey showed that the estimated total air visitor expenditure had risen by approximately $50 million. Hotel occupancy was also up, although there were 245 less beds in 2007 due to hotel closures. Bermuda's PR agency Corbin & Associates estimated that the total value of coverage in international media was worth approximately $16 million.

Tens of millions of dollars were invested in new hotels across the Island, with projects under way at Newstead Belmont Hills, Fairmont Southampton, Fairmont Hamilton Princess, Coco Reef, Tucker's Point and Ariel Sands. The former Wyndham resort is to become the Southampton Beach Resort, while Club Med, Lantana, and the Golden Hind properties are also earmarked for redevelopment. Bermuda is anticipating the arrival of luxury brands St. Regis, Ritz-Carlton and Jumeirah.

However there is growing concern that the business traveler is bolstering the arrivals numbers and that too much emphasis is being placed on the traditionally lower spending cruise ship passenger. Bermuda's largest customer segment is the business traveler, at 50-60 percent, driven by international companies on the Island. But with the arrival of low cost carriers out of Boston and New York, such as JetBlue, Bermuda has seen improved hotel occupancy levels, with many people coming here for a leisure weekend. In guest houses, 2007 was a booming year. Occupancy went gone up dramatically. It's the first time in 20 years most properties were full all summer. This is the best year Bermuda has ever had, and the airlines with the lower cost fares had a lot to do with it.

In January 2007, the World Bank confirmed Bermuda has the highest Gross Domestic Product (GDP) per capita in the world. The Island’s total GDP – the market value of all the goods and services produced – rose by 9.1 percent in 2005, driven upwards chiefly by the expansion of the international business sector. Bermuda’s total GDP was estimated at $4.857 billion – or $76,403 per head. That puts Bermuda at the top of the GDP per capita global league table, with second-placed Luxembourg more than $10,000 behind. In comparison, the US had a GDP per capita over the same year of $41,600, Canada $33,900 and the UK $30,100. 

See details about all tourism accommodation properties in Bermuda.