By DANA SMITH

dsmith@tribunemedia.net

DIRECT flight service from Panama to Nassau boosted Latin American visitors to The Bahamas by more than 40 per cent, last year, while United States visitors fell by nearly four per cent.

According to the 2012-2013 Budget Communication read by Prime Minister Perry Christie in the House of Assembly, tourism as a whole "continued to post positive gains" last year despite a drop in growth compared to 2010.

Arrival growths slackened to 6.3 per cent last year from 13.1 per cent in 2010, he said, noting bad weather could be behind the drop.

The drop reflects "to some extent, the adverse impact of weather related events on flights and cruise ship itineraries," Mr Christie said.

"In particular, the increase in sea visitors abated to 9.1 per cent from 16.7 per cent, while air passengers fell by 2.1 per cent to reverse the 3.4 per cent rise of 2010."

However, the increase in tourists arriving by sea was enough to offset the fall in those who flew.

"Disaggregated by ports of entry, total arrivals to New Providence expanded by 2.8 per cent as the five per cent rise in sea passengers outweighed the 1.6 per cent decline in air visitors," the Prime Minister said.

A 7.7 per cent boost in the "dominant" sea traffic mitigated a 12.2 per cent "fall-off" in the air segment and also benefited Grand Bahama and the Family Islands with the increase in sea passengers.

"Visitors to Grand Bahama firmed by 4.8 per cent (and) Family Island arrivals grew by 13.7 per cent, supported by a 15.5 per cent surge in sea passengers and a more muted 1.2 per cent rise in air arrivals," he continued.

"Despite the improvement in airlift capacity, continued weakness in several key source markets led to visitors from the United States falling by 3.8 per cent and arrivals from the Caribbean contracting by three per cent.

"In contrast, the commencement of direct service by regional carrier, from Panama to Nassau, contributed to the 43.4 per cent boost in travellers from Latin America, while lesser gains were posted for the Canadian, 4 per cent, and other markets - 3.2 percent."

Provision hotel performance for 2011 also showed growth with room revenue increasing by 2.8 per cent to $435.1 million and a 2.3 percentage point rise in average room occupancy to 54 per cent.

Mr Christie also stated there was a 2.7 per cent increase in the average daily room rate to $204.48.

"In 2012, tourism activity is expected to maintain a recovery bias, benefiting from the stable revival in the main group business segment, additional airlift and marketing initiatives," he said.