Overall tourism arrivals have dropped 12.75 percent for the first eight months of 2008, compared to the same time last year according to figures obtained by The Royal Gazette.

The total number of visitors between January and August this year was 435,391 — lower than the same period in 2007 and 2006 which saw 498,998 and 474,476 visitors come to the Island respectively.

Figures reveal the number of tourists flying to the Island between January and August fell 6.9 percent with 63,607 fewer people coming compared to the same period in 2007.

And the cruise ship industry did not fare better, since January the cruise arrivals have dropped 17.95 percent compared to the first eight months in 2007. August alone saw a 31 percent drop in cruise ship visitors, which means 21,000 less cruise ship passengers visited that month compared to the previous year.

August is usually considered one of the most popular months for visitors; however this year saw 47,855 passengers descend from ships, rather than the 69,619 who visited in August 2007.

The statistics come a day after Government officials said August air arrivals dropped by 1.9 percent.

The news that cruise visitors have dropped off comes as no shock to store owners who spent the summer complaining of weak sales and an empty Front Street. Irish Linen Shop manager Jeremy Hartley said: "The absence of the ships in the harbour is very noticeable and I think it sends the wrong message to hotel tourists that visit town. Having no ships here gives them an uneasy feeling of the tourism industry and Bermuda's economic status."

Gaylynne Romeo, owner of Foreign Cargo, said July and August were notoriously quiet months when residents go away on holiday, but she was clearly seeing a difference in sales compared to previous years.

A new cruise ship terminal, to accommodate two cruise ships, is currently being built in Dockyard and is expected to open in April 2009. However, Tourism Minister and Premier Ewart Brown has said Bermuda was in for a "lean" three years in the tourism industry with the a reduced number of hotel rooms on the Island and weak financial markets around the world.