Occupancy rates on the North Cape Coastal Drive rose from 29.8 to 39.6 per cent.Occupancy rates on the North Cape Coastal Drive rose from 29.8 to 39.6 per cent. (CBC)

Early indicators on the P.E.I. tourism season show occupancy rates up slightly.

The results suggest the Island may be able to weather some difficult market conditions, including a high Canadian dollar and unprecedented gas prices.

"We are pleased with the numbers and realize that with the high fuel costs and rising Canadian dollar, the industry has been faced with some uncontrollable challenges," Tourism Minister Valerie Docherty said in a news release Tuesday.

"The feedback our department has been receiving from operators has been generally positive."

Results are mixed across the province, with the west generally doing better than the rest. Overall occupancy rates rose to 37.0 per cent in June 2008 from 34.9 per cent in June 2007. The actual number of visitors was down slightly on the month.

Air travel continues to be a strength, with a 12 per cent increase in traffic. Bridge traffic was down slightly, and the ferry from Nova Scotia suffered a 10 per cent drop in traffic compared with June of last year.

While the June numbers are promising, the tourism industry makes a large proportion of its money in July and August. No numbers are yet available, but some anecdotal evidence suggests July has not been as strong.