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Hotel reservations down as wary US tourists leave it late

Hotel bookings for the second quarter of the year are significantly down on the same period in 2001, according to official figures obtained by The Royal Gazette.

Bermuda Hotel Association (BHA) figures show that as of now, bookings for May are 5.9 percent behind what they were last year, with projected occupancy of 62 percent, or 44,918 rooms sold.

June bookings now are 12.6 percent off the same time last year, with 59.3 percent (or 41,546) rooms sold.

There is good news for April, however, with bookings up 3.4 percent at 63.2 percent occupancy compared to the same period last year, with 44,280 room nights sold.

BHA President Billy Griffith told The Royal Gazette yesterday that there has been no solid surge in business yet, but that there was an increasing tendency towards tourists booking later.

The figures also did not take into consideration any business which might be drummed up by the Compliments of Bermuda free flight promotion launched last week, where a free air seat is offered to the companion of a tourist who has booked at least five nights.

The BHA figures also show actual occupancy levels fell in March compared to last year by 3.5 percent to 44.9 percent occupancy, or 32,182 rooms sold.

The figures for April, May and June show a mixed picture, with bigger hotels doing better business than small hotels and cottage colonies.

Bookings for major hotels are up 12.4 percent for April, down four percent for May, and behind 6.4 percent for June.

For smaller hotels, the figures are more grim: 17.3 percent off for April, 5.5 percent down for May, and 36.9 percent for June.

And for cottage colonies, bookings as of now are off 20.6 percent for April, down 14 percent for May, and behind 20.6 percent for June.

Mr. Griffith said yesterday: "Although there is an expectation that the companion flies free (free flight promotion) will drive more business, there is no real indication that we are out of the woods.

"The trend is that there is no real break-out business, no solid surge in business as yet. We are getting bookings, but nothing to write home about. There is a definite indication that the bigger hotels are doing better than the smaller hotels and cottage colonies due to group business.

"Comparing where we were last year is not a major comparison because we were slipping last year, so the expectation is that the companion sale will create visibility in a significant way that was not there before.

"We've got a tremendous amount of work to do to get bookings up. There are still a lot of issues in the US such as the economy and the fear of flying syndrome so the companion sale is to offset that by offering a free flight.

"A lot of people are booking later and later each year, and its an increasing trend. I am not looking at these numbers and saying this is fantastic business we are doing, because that is not the indication at this time. The indication is we are still flat compared to the previous year."

Tourism Minister David Allen did not respond to a request for comment yesterday.