Bermuda experienced a marked increase in air visitors last year — but the island’s limited hotel occupancy continues to burden the tourism sector.

The Bermuda Tourism Authority’s report on the 2024 fourth-quarter and year-end tourism results show that total visitor arrivals grew throughout the year by air, cruise and yacht.

It added that hotel capacity is only expected to see a modest increase this year.

Yachting saw a significant increase with the return of major events such as the Newport to Bermuda Yacht Race and Bermuda’s hosting of SailGP.

Furthermore, leisure air visitor spending increased by 27 per cent compared with 2023, which the BTA said demonstrates “resilience and a positive trajectory for Bermuda’s tourism industry”.

The BTA reported: “Air visitor arrivals rose significantly, driven by strong performance in key US markets, which saw year-over-year increases from New York, Boston, Philadelphia and Washington DC among other markets.

“Leisure air visitor numbers increased by over 15 per cent compared with the previous year, accompanied by a 10 per cent rise in per-person spending.

“This growth was supported by expanded air capacity, which provided more options for visitors to access the island.

“Notably, air arrivals during the non-summer months of January through May, and September through December, saw a boost in leisure travellers, resulting in a significant contribution to visitor spending during these periods.”

Total visitor spending increased 22 per cent to $531 million, which the BTA said was largely driven by accommodations — with air visitors spending 35.7 per cent more at hotels, totalling an estimated $245.1 million.

Restaurants and transportation services also saw modest growth in spending.

The hotel sector experienced higher rates, with a 4.5 per cent year-on-year increase.

However the BTA said: “Limited hotel capacity remains a key constraint on air visitor growth in the summer months.

“The temporary closure and renovation of major properties such as the Fairmont Southampton and Elbow Beach hotels has shrunk the available inventory, with hotel capacity remaining at approximately 75 per cent of 2019 levels.

“In 2025, hotel capacity is expected to remain relatively flat, with only modest increases anticipated, including the addition of some newly completed rooms in the Nautilus wing of Azura and the planned opening of Hillcrest, a new 14-room boutique hotel in St George’s.

“However, several hotels are taking advantage of the Government’s Tourism Investment Act to enhance their offerings, which will add overall value to the Bermuda tourism product.”

There were 974 yacht visits in 2024 including 79 super yachts, reflecting a 41 per cent increase on the previous year. Overall, the sector contributed $13.85 million in spending.

There was a modest increase in cruise ship passengers despite a number of weather-related cancellations.

The BTA added: “Bermuda welcomed over 535,000 cruise visitors in 2024. Although there was a slight decline in per-person cruise visitor spending, the overall performance of the sector remained positive, contributing to the island’s tourism economy.”

In sports tourism, key events such as the Chubb Triangle Challenge and the Butterfield Bermuda Championship PGA Tour event attracted international visitors.

The BTA’s marketing and public relations efforts resulted in 375 premium media placements, generating a media value of $232.9 million and reaching an audience of over 776 million impressions through publications such as Condé Nast Traveler, Vogue, Cosmopolitan, Essence, Forbes, and Travel + Leisure.

“A notable success was the Airline Support Campaign which focused on increasing occupancy during off-peak periods,” the BTA said.

“This effort, along with the increased airlift itself, contributed to higher visitation during autumn and winter.”

Initiatives aimed at enhancing the visitor experience continued, one success story being the Vegan Fest which saw a 30 per cent increase in attendance and 37 per cent increase in spending compared with last year’s event.

Tracy Berkeley, the BTA’s chief executive, said: “We are moving in the right direction and we will not be derailed from our mission to maximise value for Bermuda’s tourism sector.

“Bermuda has seen growth across key metrics in 2024 and my team is on track for more good news, driving long-term group business and making inroads in the luxury sector.

“We have delivered targeted marketing for the destination, created low-friction experiences designed to meet visitor expectations, and through our education and training programmes are strengthening community partnerships.

“Like the rest of our community, we look forward to welcoming even more visitors in 2025 and 2026.

“The opportunity lies in optimising occupancy during the non-summer months and our efforts have already shown a lift in visitor spending throughout the fall and winter periods.

“The strategy is bearing fruit and I am confident that we will see continued progress.”

To view the full 2024 Q4 and Year in Review Tourism Metrics reports, visit www.gotobermuda.com