A 21 percent surge in visitors has boosted hopes of a big change in Bermuda's tourism fortunes.
Hotel chiefs believe the overseas advertising push and attractive holiday deals are paying off.
They are keeping their fingers crossed that April and May will see the momentum continue.
"We still have to keep up our guard,'' said Mr. John Harvey, executive director of the Hotel Employers of Bermuda.
It was too soon to get carried away by the encouraging signs, he added.
Latest figures show 55,124 visitors arrived here between January 1 and March 27. This compares with 45,458 over the same period in 1993 -- a 21.3 percent rise.
For the week March 21-27, some 9,179 people flew into the Island, a 34 percent increase on the same week last year when 6,852 people came here.
Mr. Harvey said he was "naturally pleased'' by the upswing in numbers.
Travel agents had reported interest in special deals enticing people to Bermuda. The temperature guarantee scheme had also proved a big success.
"There has been a noticeable improvement in March. We just hope April and May will be the same.
"I am concerned we will see business go a bit soft in these months, although there has been a late booking pattern so we will have to wait and see.''