Coast tourism struggles through summer

GULFPORT — The Coast’s tourism industry has been struggling through a slowdown brought on by the anemic national economy, but experts in the field say some narrow sectors are doing well and others are expecting brighter days.

Air traffic in and out of the Coast is holding its own and new flights have been added. Hotel and motel room rentals are down, but the picture is improving.

In short, this summer has been a time of survival for the industry.

WILLIAM COLGING/SUN HERALD The Killingsworth family, from left, Veronica, 12, Cassie, 7, Angelina, Zane, 14, and Ron, play together on Biloxi Beach Wednesday. The Killingsworths are vacationing from Dawsonville, Ga.

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“It’s not as busy as we would like,” said Bob Davidge, a spokesman for Hollywood Casino in Bay St. Louis.

At the Mississippi Hotel and Lodging Association, Executive Director Linda Hornsby put it this way: “I do think we have bottomed out. We’re going to turn around, but it’s just taking a little bit longer than expected.”

Richard Forester, at the Mississippi Gulf Coast Convention and Visitors Bureau, said hotel occupancy rates have been running just north of 60 percent. Rentals of the Coast’s 10,000 rooms were down 6 percent in June and 11 percent in July, but those were improvements over recent months.

“We haven’t turned the corner yet, but I think I see it in sight,” Forester said.

Some niche tourism businesses, though, have actually been boosted by the poor economy.

“Things look very encouraging,” said Louis Skrmetta at Ship Island Excursions.

His company takes passengers from Gulfport Harbor on day trips to Ship Island. Skrmetta said the recession seems to be helping his businesses.

His clientele is mostly people from neighboring states who are opting for day or overnight trips to the Coast, instead of longer, expensive vacations with faraway destinations.

Skrmetta’s three boats can take 1,200 people a day to the island at maximum capacity, and that has happened at least twice this summer.

“We think we will surpass the 40,000 mark this year,” he said — a level not reached since before Hurricane Katrina in 2005.

Gulfport-Biloxi International Airport has been recovering this year from the loss of AirTran, a major carrier that pulled out in January.

“That left a big void,” said Jeremiah Gerald, director of air service development.

However, Continental began offering popular flights from Jacksonville and Tampa, and three new flights a week by Southern Skyways offer low-cost trips to and from Atlanta.

“Those passengers have a huge, direct effect on the economy,” Gerald said. “They come here for two or three days, and they spend money.”

In July, 37,000 people got off flights at the airport.

“That was the best on record for this year, and we expect to keep those numbers up,” Gerald said.

“In the fourth quarter, we’re going to be just about where we were in the fourth quarter last year.”

Hollywood Casino has been offering specials including reduced-price meals for senior citizens one day a week.

The casino has also reopened its marina and gave away two Chevy Corvettes in August.

Two others will be given away in October.

The hotel industry, too, has come up with new tactics to fight recession.

This summer, the Convention and Visitors Bureau and Hotel and Lodging Association began offering a three-night stay package, with the last night free.

However, Hornsby said, hotels discovered that many people didn’t have that third night to spare.

So, the industry came up with an alternative: For two-night stays, the second night at participating hotels is half price.

“We call it the BOGO,” Hornsby said. “By one, get one.”

Forester said this season seems partially bleak because 2008 was strong for Coast tourism.

The recession was not as pronounced then. But now, vacation and travel plans are being scaled back or scrubbed altogether.

“We had a really good year last year, so we’re comparing apples and oranges,” he said.

Tourism Campaign Pushes 67 Days Of Smiles

ORANGE COUNTY -- It’s been a tough year for tourism in Central Florida, but now tourism leaders said they have a new plan.

The Orlando/Orange County Convention & Visitors Bureau rolled out Orlando Makes Me Smile Wednesday, a new marketing plan that will rely heavily on social networking.

With attendance numbers dropping and multiple tragedies hitting theme parks hard, there has been little to smile about so far this year.

Stacey Doornbos and Kyle Post are supposed to change all that.

Doornbos and Post, who are from New York City, are the faces of Orlando Makes Me Smile campaign. They'll spend 67 days hitting local attractions and then blog, Twitter and Facebook on their experience.

"Orlando is beautiful. It is a wonderful city,” Doornbos said. “It’s clean. There are so many things to do here and we are just really excited to actually take in over one hundred events."

So far, parks have seen numbers drop by 8 percent. Convention bookings are down even more -- nearly 18 percent -- and next year won't be much better.

Experts predict visitor levels will remain nearly flat while convention bookings drop another 5 percent.

"This has been a challenge for every destination in the country,” said Gary Sain from the Orlando/Orange County Convention & Visitors Bureau. “So we are holding our own, but obviously we are going to be very aggressive in trying to get more business to our destination.”

Drive markets, such as Miami and Atlanta where someone can easily make it down to attractions for a weekend, will be a big focus point.

Ads touting the smile campaign will run on radio, online and in print.

However, the main focus will be on Doornbos and Post and the word of mouth their experiences can bring.

“It's a good way for people to experience what it’s really like. That it’s not some overly produced thing. It’s just two people in Orlando experiencing what we are doing," Post said.

Miss Bahamas Tourism Queen, Tiara Cooper listed among the Favorites for International Title

Nassau, Bahamas – In the final days leading up to the Miss Tourism Queen International competition, one of the world’s leading pageant websites is taking note of Bahamian beauty Tiara Cooper. The statuesque beauty has been named as one of the favorites to win the coveted title by the beauty experts of leading pageant website Global Beauties.

Tiara, who captured the Miss Bahamas Tourism Queen title during the 2008 Miss Bahamas World pageant, has been competing at the pageant in China for the last three weeks. She has visited several provinces, experiencing the unique culture of China while promoting the Bahamian culture in the process. There are 98 delegates competing in the pageant which culminates with the grand finale on August 28th.

The Miss Tourism Queen International Pageant was founded by Mr. Charlie See in 1949. In 1993, the Miss Tourism Queen Organization held the first world final competition in Sri Lanka, and later in USA, Russia, Brazil, Germany, Japan, Singapore, and many other countries as well. The contest then moved to China in 2004, and has been held there ever since, growing to the point where it is now considered to be a Grand Slam pageant – one of the top 4 in the world. With each country's tourism ambassadors coming together for the event, Miss Tourism Queen International aims to enhance tourism development, friendship among the countries, and international culture exchange.

Bahamians are being encouraged to boost Tiara’s chances in the pageant by voting for her online at http://www.misstqi.com/vote. php. The contestant receiving the highest number of votes automatically advances to the finals. There are 60 contestants competing for the title in this spectacular event.

Florida Tourism

Tourism executives look for ways to stretch marketing dollars and lure groups

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With Florida visitor arrivals down 10 percent since autumn and no recovery expected before mid-2010, anxiety is running high at the governor's annual tourism conference this week.

Travel executives are seeking ways to do more with less, position themselves for an eventual uptick and identify new trends that the state can tap – from experience seekers to foodies.

They need to innovate, because the tourism industry -- vital to the economy of the state and South Florida -- faces its worst slump in decades, deeper even than the period after the 9-11 attacks in 2001.

In a brief speech Monday, Gov. Charlie Crist offered no specifics for the struggling industry, noting only "Now, more than ever, is the time to promote," and "visit Florida." He also made no mention of the recent $10 million cut in state funds for travel marketing.

But executives found some solace in plans outlined by the state's tourism marketing group, Visit Florida, to stretch a 30 percent smaller budget, especially through the Internet.

Visit Florida is turning more to Facebook, Twitter and social networking groups for promotions and trimming costly TV spots. It is targeting efforts more to Florida's top seven source markets including New York, Atlanta and Toronto. And it is deepening ties with business, working more closely with Disney and other major attractions and even teaming up with retailers such as Bealls to showcase giant photographs of Florida destinations in local stores, said Chief Marketing Office Will Secombe.

Executives recognized that neither government nor business has the cash today to boost marketing the way they did after 9-11, and they questioned whether travelers will ever return to the free-wheeling spending they did before the recession.

"We're training consumers to wait for the last-minute and best deal. And even if that's not a permanent change, it will be a tough one to recover from"' said Visit Florida Chief Execuive Chris Thompson.

New numbers from Smith Travel Research show the depth of the challenge in South Florida.

Through July, Broward County hotels saw occupancy fall 6 percent and average daily rates 13 percent. Revenue for available room – the industry benchmark -- dove 18 percent to $78 a day.

Palm Beach County hotels fared even worse. Through July, revenue per available room plunged 26 percent to $85 a day, Smith Travel said.

Jorge Pesquera, president of the Palm Beach County Convention and Convention Bureau, said his agency has been seeing a slowdown in the monthly declines, thanks to aggressive promotions that include a final-night stay at $19.09 and rebates up to $4,909 off large meetings booked by Sept. 30. The agency also is slowly tapping $2 million in extra county funding for promotions.

"I'm feeling most optimistic than I was this winter," Pesquera said. But he still sees no recovery until next year – once business travel and the meetings business improve.

Nicki Grossman, president of the Greater Fort Lauderdale Convention and Visitors Bureau, sees fewer tourist dollars until jobs recover and families spend more freely.

"Right now people are still congratulating themselves on how much they save," Grossman said.

In northeast Florida, hotelier Richard Goldman knows the pain first-hand at the 600-unit Amelia Island Plantation. His resort has laid off about 250 of its 1,100 workers since autumn, as its groups and meeting business plunged – especially in the wake of government officials criticizing resort meetings by leaders of companies receiving government aid.

"They're not hurting the fat cats. They're hurting the Joe Publics," said Goldman, senior vice president at the resort.

Goldman said groups used to account for up to 70 percent of his hotel's business and likely will fall to half this year. Rates are down too, by about 15 percent to an average $157 a night, he said.

Not all travel businesses are foundering.

Florida Vacation Auction.com of Fort Myers, is growing by tapping into travelers' desire for bargains. It now offers as many as 50 auctions a week on lodging packages and attraction tickets, almost double the tally last year, said Chief Executive Sal Dickinson, a former marketing chief for hotel groups. Discounts range up to 80 percent off retail.

Yet even Dickinson recognizes "there's only so low you can go" and stay in business "to make payroll and keep the lights on." He expects deep discounting will bottom out, perhaps next year, as business and group travel rebounds and hotels stop focusing so heavily on leisure guests to fill empty rooms.

That leaves many at the governor's conference to adjust to what economist and trend-spotter Richard Florida calls the "Great Reset," accelerating the transformation from an industrial to a "creative" society. He finds the Sunshine State well-positioned to cater to the growing creative class that seeks new experiences and areas with diverse people.

Wage freeze, tourism spending key items on Fort Smith agenda

Freezing wages and warming tourism were the hot topics for the last of two special meetings held Tuesday (Aug. 25) by the Fort Smith Board of Directors to plan for the 2010 budget.

The first meeting was held Aug. 17, during which City Administrator Dennis Kelly recommended a wage freeze for all city employees in 2010, and proposed a broad plan to expand the city’s tourism and recreation assets through implementation of a 3% prepared food tax.

WAGES
After Kelly reiterated his request to hold fast on salaries in 2010, City Director Kevin Settle noted that many in the private sector are also seeing wages frozen or cut. He noted that in the past six years with his employer, the workforce have seen three wage increases. Settle added that he and other salaried colleagues at his employer (Exide Technologies in Fort Smith) are taking week-long furloughs (non-paid leave) in the near future.

“It’s tough out there. I don’t like freezing wages, but I feel the pain,” Settle said, noting his support for Kelly’s request.

City Director Cole Goodman agreed with Settle, and added that its better to freeze wages than cut jobs.

But City Directors Don Hutchings and Steve Tyler said it sends a mixed message to talk about holding wages at the same time the city proposes a multi-million dollar plan to expand tourism and recreation facilities.

“It’s a big mistake,” Hutchings said of proposing a wage freeze when also proposing the tourism expansions.

But Directors Gary Campbell, Cole Goodman and Settle reminded the others that the tourism projects and the wage issues were realities of two separate pots of money. Goodman said citizens have to know that the “funding sources are different” and that the tourism and recreation projects have the potential to “make things better for everyone.” Director Bill Maddox, who has a reputation for opposing expansive new programs, agreed with Goodman’s comments.

Settle said if a wage freeze is enacted that the policy comes with a caveat that the policy will be reviewed in mid-2009 to see if economic conditions might allow raises to return in the second half of the year.

The board is likely to decide on the matter by November.

TOURISM/RECREATION FUNDING
In opening the dialogue on his proposed 3% prepared food tax, Kelly said his simple request to the board is, “What do you want to do?”

The bottom line of what Kelly presented Aug. 17 is $11.55 million in upfront capital costs, with roughly $3.55 million in ongoing annual costs funded by a 3% prepared foods tax — aka, restaurant tax — that could potentially generate $27.54 million in the first five years. More than 40% of restaurant taxes are paid by those outside Fort Smith, meaning the city generates $1 in tourism-related improvements for about 60 cents. (Link here for details on Kelly’s proposal.)

The main priority of the funding is to fix an estimated $1.8 million gap in convention center funding that will become problematic in 2012. The city’s portion of the state’s tourism turnback funds are set to expire in 2010. The city received around $1.8 million annually from the turnback program. Between 2001 and 2007, the city collected $13.23 million in turnback funds, with $4.36 million of that used to help pay down the 1997 sales and use tax bond debt.

Maddox was the first director to comment, suggesting the city use a portion of the existing 1-cent street tax and returning the business license fee (could generate up to $1.5 million annually) to fund the tourism/recreation asset expansion.

“That (business license fee) is a source of revenue that needs to be presented to the chamber of commerce to get their backing,” Maddox said.

Settle encouraged the city staff to begin working on maps and other visual aids that will help citizens get a better grasp on what is being presented. He said maps of trails and other new facilities are needed “so people can see what we’re talking about.”

The directors asked Kelly to prioritize the projects in the plan and present the priorities in a special study session before the end of the year.

Kelly agreed, saying there is “tons of due diligence to do” on plan details, and that it would be up to 90 days before substantive information would be available. Kelly said initial city staff discussions have suggested finding convention center funding is the first priority, with tourism/recreation projects that create the most jobs on the next priority level.

Kelly also agreed to work in funding options like those offered by Maddox.

“You have a tremendous opportunity for mix-and-match here to get the job done,” Kelly said of potential funding options.

"Boycott Scotland" the Latest Reaction to Lockerbie Killer Release

People are threatening to boycott Scotland. I don't think it is such a bad idea to boycott Scotland. In fact boycotting Scotland is a reasonable response to the release of mass murderer 57-year-old Abdel Basset Ali al-Megrahi on "compassionate grounds."

Robert Mackey has written an article on The New York Times titled "Scottish Justice Secretary Explains Release of Lockerbie Convict." In the article we are made privy to the video presentation of Scotland's Justice Secretary Kenny MacAskill defending

"Boycott Scotland" the Latest Reaction to Lockerbie Killer Release

Date: August 21, 2009

why the killer was let go. This is simply further angering those who think Scotland should be boycotted.

Abdel Basset Ali al-Megrahi served 8 years of jail term that was supposed to me a 27-year-minimum term. This was punishment for killing 270 people.

It is hard to know just how much Scotland had to do with this decision to release the killer. Do they deserve to be boycotted?

There are basically two key points that have played a role in the decision to send Abdel Basser Ali al-Megrahi home.

He is dying of prostate cancer. All sources including medical are sure that he hasn't a chance of surviving. So why keep him locked up? He is going to die so let him go home. This is termed throughout the article as "compassion."

Of course the use of that term inflames people who want to boycott Scotland because this person had no compassion for the people on the plane.

The way that most people are threatening to boycott Scotland is to refuse to take their regular vacation trip there.

Also, there is some concern that the Scotland "Lockerbie Killer" was the right person convicted.

There was supposedly a lot of circumstantial evidence and those who were witnesses had a lot to gain economically to convict him.

What do we make of this event?

I don't buy any of it.

Muammar Qaddafi has been trying to get Abdel Basset Ali al-Megrahi released.

The United States has begun to bond with him. In fact Obama has made a point of being very friendly with Qaadafi.

Tourism helping Iceland weather their perfect storm

If you think the recession in the US has been dreadful, I recommend reading up on how Iceland has been coping.

This nation of just 320,000 people let its banks pull the country into a total financial disaster.

Their three national banks had debt equaling over three times the countries gross domestic product.

Their government collapsed, their currency lost a third of its value, they had to take out emergency loans with the IMF, and some of their European neighbors don't want to let them into the EU until they repay their debt. Sucks to be Iceland.

But despite all this, the country still has its biggest asset - itself. The nation is gorgeous, and they are heading back to their roots to take full advantage of this.

Tourism is up 20% this year, and they are on target to welcome 600,000 people, almost twice their own population. Part of the driving force behind this increase is a substantial drop in the cost of visiting Iceland. The country was always well known for its insanely high prices - it was quite normal to be charged $16 for a glass of wine, or $150 for a short excursion.

Many of these prices have dropped by at least 30%, which still puts them on the high side of what you'd want to pay, but makes it affordable enough to pull in more tourists. The lower exchange rate has also lowered prices of air travel to Iceland, flights from many European countries are available for under $200, and even round trip tickets from the US to Reykjavik are available for under $550 (all in) on Icelandair.

I highly recommend visiting the site of their tourism board to see how much the nation has to offer. Your tourism krónur may not be able to pay off their debt, but you'll certainly help them in the right direction.

Guests More Satisfied With Hotels Around the World

"Was your hotel worth the money?" This was the question investigated by hotel.info, the free online hotel reservation service for over 210,000 hotels worldwide. hotel.info is analysing the over 1 million hotel ratings awarded by hotel.info booking customers from around the world in terms of the price performance of 3 and 4 star hotels. The hotel.info Hotel Value for Money Index for mid 2009 has some surprising results, in comparison with the ranking at the end of 2008.

During the economic crisis, the satisfaction of guests with the performance of the hotels in which they have stayed has risen around the world. Obviously the economic crisis has led to hotel customers believing hotels are offering greater value for money than before. The average of all ratings submitted by customers who had made bookings in the largest 20 major cities of the world has improved from 6.69 points at the end of 2008 to 7.11 points (out of a possible 10) now.

One reason could be the cheaper room prices caused by the recession, since these have fallen by an average of 8-10% since the beginning of the crisis last autumn. After all, the price is an important factor when it comes to assessing the value for money of a hotel. Another factor, however, is that the indicator seems to show that hotels go out of their way to help their guests more in times of crisis - after all, the numbers of travellers have definitely fallen. It is now much more important to fight for every individual customer, in view of the harder competitive environment.

Another interesting aspect is that while the economic crisis has caused many hoteliers to tighten their financial belts, the ensuing job cuts have in no way curtailed the hotels’ levels of customer service.

Given a global comparison, hotel guests regard hotels in Lisbon, Portugal, as providing the best value for money. The Portuguese capital, and its German counterpart, Berlin, pushed the leader from the end of 2008, Tokyo (Japan) back into third place. Major cities such as New York, Moscow and London disappointed in contrast, not even making it into the top 20. Even the major European centres of Paris, Amsterdam and Stockholm in Sweden fell from the top 20, being replaced by Madrid, Helsinki and Dubai. Last year’s UK top two, Bournemouth and Southampton, remained unchanged at the top of the tree.

In the UK, too, the hotel.info Hotel Value for Money Index has returned some unanticipated results. While the winner Bournemouth (7.78) beat competition from Coventry (storming up from 14th to 3rd), Glasgow and Portsmouth to the top spot, Birmingham, Oxford, London and Brighton recorded below-average results and are back in the bottom third of the national ranking. Obviously the hotel trade in these destinations is continuing to offer below-average value for money.

Overall, hotels in major UK cities fared only moderately well at an international level in terms of value for money. In comparison with the 7.33 average score for the major cities from all of the countries represented in the study (including Germany, Switzerland, France, Spain, Italy, the USA and China), the UK result, with a value for money index rating of just 6.71, is significantly below the average country score, and is thus only one place above the bottom in a table of 15 comparable countries.

hotel.info Global Top 20 (major cities)
2009 (middle of year)
1. Lisbon 7,83
2. Berlin 7,75
3. Tokyo 7,74
4. Prague 7,73
5. Beijing 7,54
6. Budapest 7,45
7. Warsaw 7,37
8. Dublin 7,31
9. Madrid 7,29
10. Athens 7,25
11. Vienna 7,23
12. Ottawa 7,20
13. Istanbul 7,15
14. Helsinki 7,09
15. Zagreb 7,08
16. Bangkok 7,07
17. Singapore 6,88
18. Rome 6,85
19. Washington 6,56
20. Dubai 6,47
Source: traveldailynews. com

Vegas Brand Competes for Global Tourism Market

John Bischoff addresses the Las Vegas Hospitality Association

At the Las Vegas Hospitality Association’s (LVHA) August 20 luncheon at Wolfgang Puck’s Postrio restaurant at the Venetian, the guest speaker was John Bischoff, vice president of international brand strategy for the Las Vegas Convention and Visitors Authority (LVCVA). Along with statistics, Bischoff covered how the LVCVA is branding Las Vegas in the international marketplace, how LVHA members can get involved, and how important it is to be flexible in these changing times.

Bischoff joined the LVCVA a year-and-a-half ago to develop the company’s international sales division and build Las Vegas into the “world’s” most desirable destination. In the 1990s, the LVCVA had eight international sales offices. In 2007, the LVCVA Board of Directors adopted a global strategy, and in 2008, the LVCVA approved 12 offices representing 75 countries around the world. Before this new brand division, the LVCVA focused on the leisure market for foreign visitation.

In each foreign office, there are three types of people: an account manager, who is the “face of Las Vegas;” a person devoted to MICE (meeting, incentive, conference, events); and a public relations person to help market the brand. All total the offices employ upwards of 50 people.

Bischoff asked the question, “Why bother to go after the international market if it’s so difficult with challenges such as homeland security, visa and passport issues, biometric identifiers, consumer confidence, currency fluctuations and exchange rates, etc.?”

His answer was, “International visitors plan their trip in advance, stay longer, and spend twice-as-much money as a domestic visitor.” He pointed out that this not only includes gaming revue, but also non-gaming expenditures such as lodging, sightseeing, shopping, food and beverages and transportation.

What is the LVCVA’s strategic vision? It’s a tired approach, brand global domination, plus specific local, in-country, and regionalized branding. Bischoff explained the LVCVA’s three tiers. The first tier is Canada, Mexico and the United Kingdom, which makes up 70 percent of the international market, but it’s going down. The second tier at 20 percent and going up covers the European Union, Australia/New Zealand/Southeast Asia, South America and Russia/Eastern Europe. The third tier is the emerging markets China, Russia, India and Brazil.

The LVCVA operates off of 33.8 percent of the room tax revenue. While the visitation has been down, in 2007, Las Vegas had 39,196,000 visitors with 4.7 million international visitors making up 12 percent. In 2008, the Las Vegas-figure dropped to 37,500,000 visitors, but the international number jumped by 900,000 for an increase to 15 percent penetration.

Other efforts by the LVCVA include managing seven foreign specialized “VisitLasVegas.” Websites and introducing “Las” in front of the “Vegas Only” logo. Bischoff said not everyone knows the destination as “Vegas” and that the slogan, “What Happens In Vegas, Stays In Vegas,” doesn’t necessarily translate literally in other countries so it too needs to be massaged.

Bischoff mentioned the ways in which LVHA and tourism industry processionals in Las Vegas can get involved. People can go on sales missions, work trade shows, support fams (familiarization trips), invest in programs by offering products and services, stay in constant communication with the LVCVA and give feedback.

The LVCVA also works to get more direct flights to Las Vegas and has met with much international success especially in the United Kingdom where Virgin Air currently offers nine weekly direct flights. Beginning October 26, British Airways will debut daily direct flights offering 7,500 more seats monthly.

Bischoff summed up how his LVCVA division may accomplish its goals. “We need budget flexibility as we seek out infinite opportunities. We need to apply money where there’s an opportunity on the LVCVA’s behalf.” He also emphasized that Las Vegas needs to be both proactive and reactivate to situations that arise.

Spain's key tourism industry dips 6.1 percent

MADRID (AP) — Spain's key tourism industry has seen a 6.1 percent dip in summer holiday arrivals this year amid the global economic downturn, the Tourism Ministry said Friday.

Just over 6.6 million international arrivals were recorded during July, down from the same period the previous year, the ministry said in a statement.

The global recession caused a 10.3 percent drop in arrivals during the first seven months of the year — to 30.2 million tourists after a record total of 33.6 million during the same period in 2008.

Spain has for years consistently been ranked within the world's top three tourist destinations — both by arrivals and income earned — along with France and the U.S.

In late July, Spain's government approved a €1 billion ($1.42 billion) aid plan to help the tourism sector ride the economic recession.

All of Spain's traditional destinations suffered a fall in arrivals except for the capital, Madrid, which saw a 6.6 percent increase.

The largest proportion of foreign tourists came from Britain, with just over 1.6 million arrivals, ahead of France which overtook Germany, the ministry says.

The number of Britons traveling to Spain's holiday resorts — 24.5 percent of Spain's tourism — dropped by a significant 16.1 percent as a phenomenon dubbed "stay-cation" gripped the British Isles.

The southern region of Andalucia, with its historic Moorish monuments and Costa del Sol beaches, suffered the sharpest decline in visitors, with an 11 percent drop.

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The eastern region of Valencia was the least hard hit, with a year-on-year dip of only 0.4 percent and it was this destination that experienced a large increase in French tourism, which rose by 35 percent. French tourism to Madrid was also boosted by 23.4 percent.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.