percent, first quarter slump in visitors this year as compared to 2000.

But as the figures were released yesterday, Bermuda Hotel Association president Billy Griffith predicted summer numbers will not be below last year's all-time low.

First quarter figures showed there were 41,025 visitors this year compared to 48,310 for the same period last year.

Air arrivals were down 16.7 percent to 40,176. There was a 15.5 percent decline in arrivals from the United States, an 11.2 reduction from Canada, Europe was down 52.3 percent and United Kingdom arrivals fell 25.3 percent.

The number of rooms available fell by 10.3 percent from 2,809 to 2,519.

Availability in large hotels was down eight percent, smaller hotels were less 12.4 percent and cottage colonies were off 18.4 percent.

Occupancy levels fell from 40.6 percent to 33 percent. Major hotels were down from 41.3 percent to 30.9 percent, cottage colonies down 31 percent to 24.9 percent, but small hotels were up 51 percent to 58.4 percent.

Tourism Minister David Allen said there were less rooms available because of the renovations spurred by the tax breaks in the Hotel Concessions Act -- and some vacationers had decided against Bermuda because they did not want to visit a hotel if work is being carried out.

"We can't have gain without pain. The Hotel Concessions Act has been a great success, but it has meant a bit of temporary dislocation,'' said Mr. Allen.

Mr. Griffith, who is also the president of the Harmony Club, said: "We have suffered from the lack of available rooms. There has been a certain percentage of business that has stayed away from hotels where there was renovation works, and that's normal.

"For April, May and June, we are still showing the same late booking trend and the advance figures we are getting from some hotels show no major concerns for April, May and June.

"The business is coming late, but I still think we'll achieve at least the same as last year. We do have good hopes for the next quarter.'' The number of bednights spent in hotels and cottage colonies was down from 202,886 to 169,314.

Mr. Griffith said the impact of hotel improvements should be felt as early as this summer.

He said 500 travel agents had recently visited the Island and seen the renovations, and they had renewed enthusiasm about selling Bermuda.

The winter period has traditionally been difficult for Bermuda and the new public-private sector Bermuda Alliance for Tourism was looking at this.

Mr. Allen said there was a Caribbean region-wide slump, with 13 of the 26 countries in the Caribbean Tourism Organisation showing declines, particularly from Europe.

There was reason for optimism "once the dust settles'', said Mr. Allen, with $500 million in new investment in improving or building new hotels completed or planned.

This includes the Tucker's Point Club, Cambridge Beaches, Palmetto Gardens, Surfside, The Wharf, Grotto Bay, Fairmont Southampton Princess, Elbow Beach, The Reefs, Hamilton Princess and the former Club Med.