By Jacob Geiger
VIRGINIA BEACH
Margaret Figueroa had planned to head for Florida this week. But two weeks before she left home, the Staten Island resident decided that gas prices topping $4 a gallon made Virginia Beach a better - and more affordable - destination.
She called the Days Inn and was surprised at how easy it was to book an Oceanfront hotel on such short notice.
"We'll go to Florida next year," she said.
Tourists still are coming to Virginia Beach and the Outer Banks this summer, but business is down as many of those who do come stay fewer nights and cut back on spending. Both tourists and those who serve them blame the cutbacks on the slumping economy and high gas prices.
Room occupancy rates are down in Virginia Beach and the Outer Banks this year, according to Smith Travel Research.
In Virginia Beach, the average hotel occupancy rate dropped from 62.3 percent in June 2007 to 58 percent last month, Smith Travel said. On the North Carolina coast, occupancy rates dropped from 57.8 to 51.8 percent over the same period.
Fewer people in the hotels means fewer riders for Hampton Roads Transit's Virginia Beach trolley lines. Ridership on three lines used by tourists dropped from about 113,000 in June 2007 to just over 79,000 in June 2008.
Despite those numbers, overall hotel revenue for the city is up 0.6 percent for the first six months of 2008, said Chuck Applebach of the Virginia Beach Convention and Visitors Bureau. That may not sound like much, but Applebach said it's about the best the city can hope for.
"When you look at the industry and what we're seeing, being even or slightly positive is very good," he said. "We've been thinking all along that if we could match or slightly better 2007 - which was a record year for us - in this economy we'd be doing very well."
Restaurant and convenience store owners weren't deflated by the tourism decline, but it has had an effect on their businesses.
Sales have dropped 30 to 40 percent from last year at Catch 31, an upscale seafood restaurant in the Hilton, said Travis Rotruck, the restaurant's manager.
"Last year it was steady, but this year it's been more hit-and-miss. There are some days... it looks like the off-season."
At Prime Only in Nags Head, where the average entrée runs about $25, check totals are down about 10 percent this year, according to owner Russ Poland.
"What can you do?" Poland said on the phone Friday.
He still sees most of his regular customers, but they are spending less.
A Buffalo, N.Y., couple who come every year when they visit the Outer Banks for vacation told Poland that the high cost of gas meant they would go out one night less.
"They said it cost them an extra $135 driving down," Poland said. That's plus an extra $50 this year for driving around the Outer Banks.
At least one Oceanfront vendor is bucking the trend. Jeremy Brower said business at his hot dog carts has been booming. He guesses that's because his hot dogs are inexpensive.
Sangeeta Samanti said business at her Blue Water Beach Shop at the Oceanfront picked up a bit after July 4, but June sales didn't look good.
"This is a luxury item," she said. "People are spending more on eating and sleeping."
Where hotels have seen an increase is in last-minute bookings.
Mike Luciano, manager of a Best Western on the Oceanfront, said people are showing up at the hotel on Saturdays looking to reserve a room or calling just a few days in advance. He said the trend of last-minute reservations has been increasing in recent years, but this year it really exploded.
Some of the larger chains tout programs that offer gas cards or a free night if visitors spend a certain number of nights at the hotel.
"We tried things like a gas card," said Bob Swenson, general manager of the Sheraton Norfolk Waterside. "But it seems people are focusing on the basics, just getting a reservation and not getting a package. They're watching rates closely and looking for the best deal."
That's why Carolyn McCormick did something a few weeks ago that she's never done before: She started a summer advertising campaign.
"We're spending $100,000 right now and adding $100,000 in August, all for Internet advertising," said McCormick, who's in her 11th summer as managing director of the Outer Banks Visitors Bureau. "It's a 'visit now' campaign, and that's unprecedented."
The visitors bureau typically spends its $2 million advertising budget in the off-season, especially winter and spring.
McCormick has stepped up overseas advertising in the past few years. She said international tourism is up this year as Europeans take advantage of the dollar's decline.
She said companies that rent beachfront homes and condos have avoided the declines plaguing hotels, and rentals have averaged 85 percent occupancy this summer.
Sun Realty, which has about 1,400 properties on the Outer Banks, said business this summer has been comparable to last. Melissa Crocker, Sun's director of marketing, said some tourists are choosing long-weekend visits instead of full-week stays, but business hasn't changed much.
Along Sandbridge, Seibert Realty, which rents about 400 homes and condos, has seen business go flat or down a few percentage points from last year. Kathy Frierson, Siebert's marketing manager, said the company hopes to attract local residents who've decided not to take a longer vacation this summer.
"Normally we don't do local ads, but with the economy the way it is, we know people are staying home," Frierson said.
The ones who have come to the Oceanfront are trying to ensure the slumping economy doesn't ruin their vacation.
Ginny Frederick comes to Virginia Beach from Sunbury, Pa., each year with her family. This year, the family decided to stay one less day to save money.
Mark Deisher of Radford said his family brought their own snacks and drinks to the beach to cut down on costs.
Beverly Smith, who comes down from New Jersey every summer with her family, said the family hasn't been able to go out and enjoy as many tourist attractions this year.
"Just trying to buy gas to get here and then home is a lot."
Staff writer Ryan Hutchins contributed to this report.
Jacob Geiger, (757) 446-2643, jacob.geiger@pilotonline.com
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Curtis J, you're an exception
And God bless you. Sounds like you are the guy who is always hauling something or stopping in a snowstorm to pull someone out of a ditch. My brother is like that, but most of the rest of us can get by on a small economy car once the kids are grown (or if we only had one or two to begin with . . .). Cheers, MGM
"Going green, blue, purple
"Going green, blue, purple will not lower the gas prices and yes it will take many years for alternative fuel so don't go out here and fool people."
Please read up on supply and demand. Basic econiomics dictates that the cost per barrel will drop with less demand. Albeit for a short period.
For those of you looking for a political slant; don't forget the Bush admin actually offered tax incentives for business owners to buy heavier trucks. The incentive was only for heavier trucks. Why would someone do that?
RE: green
"Going green is a waste of time and money."
I'm not going to argue the point, but I totally disagree with you. If we don't start doing something even "little steps", we are doing nothing to reslove a serious problem.
Green
Going green is a waste of time and money. Why is it just SUV's I guess no one notice those big pick up trucks which are SUV's without the cover. If I had a choice big pick / SUV or one of those little cars, I choose the big pick up or SUV. For one I feel alot safer and two if I need to haul something large I can't do it while trying to save the gas in a small car. You can't haul a boat and trailer or carry lumber in one of those little cars. And while you're stuck in the snow or high water don't ask for a hand to get out from a truck passing by. And yes when a polical party refuses to help the American people when it comes to oil because of their perks and political future yeah it's time to point fingers. Going green, blue, purple will not lower the gas prices and yes it will take many years for alternative fuel so don't go out here and fool people.
Vacationing slump
It's all a conspiracy theory. You can "blame" which ever political party you want, quote speeches from either candidate, blame past Presidents until the cows come home, etc. but what good will that do? None! Some of still love the big SUV's for some strange reason. Time to go green and face the facts(however "real" they are). Time to buckle your belt. Things will hopefully get better. Oh, wait, Myrtle Beach is offering something :)
Poor dumb aliens
"You seem to have a choice in November -- more of the same or change. An intelligent species would pick change - even just the hope of change.
Repeating the same mistake is illogical."
Yes, voting along party lines for a man such as Obama that has no platform other than telling you what you want to hear even if it is a lie could be a big mistake. Comparing Bill Clinton to Obama is laughable. The only thing they share is a party affiliation. This is the same partisan LOGIC that gave you Bush.
What's funny is acting as an alien or advertising on cartoons may actually reach Obamas core voter. LOL
at least VABeach
At least VABEACH Has tourist, Norfolk has NONE, and no reason for them to visit there.
Interesting
As I monitor your communications, I see that you constantly discuss a past leader, Bill Clinton.
You must miss him very much.
I have reviewed your historical documents and can see why you are nostalgic. The last seven years have been a disaster. Obviously, you long for the prosperity that marked Clinton's tenure.
You seem to have a choice in November -- more of the same or change. An intelligent species would pick change - even just the hope of change.
Repeating the same mistake is illogical.
Quick comment on car size
I keep seeing people, from this article and other ones, pointing fingers at families not driving economy cars. We have a family of five which is average. I know in our case we need 2 government mandated child seats, and we have another older child (we used to use 3 seats). Because of the seats, the three cannot sit on one row. When we had three seats, we couldn't fit our hands between the seats to buckle them. The seats would not fit side by side. Now with 2 seats, the older child is literally squished at the shoulders and hips and has to sit sideways whenever we try to fit all of the children on one row. The older child can't sit in the front b/c of air bags. The center front usually doesn't have a shoulder belt or headrest so it's unsafe. If we had those wide 70's-type station wagons, we'd fit. Unfortunately today's sedans aren't wide enough...we've tried!
oh, big surprise...
More hard-hitting news from the pilot - gas prices are having an impact on vacation travel. Wow, am I shocked...
But look out, dems, gas prices dropped, which can't be good for you. Gonna have to work even harder to get gas prices up to $6 so it can be an issue in November. $3.76/gallon won't give Obama the nod, will it?
jmo
oil
We only import 27% of our imported oil from the middle east, yet the republicans find a way to make that the reason for high prices. If we tapped into the oil reserves in the U.S., do you really think that the big oil companies would lower the price and give up the gravy train? No, they would just export the domestic oil and we would see no change at the pumps. The price of gas is high for no other reason than the oil companies simply raising it because we will pay it and nothing more. Yeah, blame the democrats for the recession that Bush and his republican chimps have run the country into.
I spilled a cup of coffee this monring & I Blame Clinton
"You can blame or thank Bill Clinton, Obama and the other democrats who like seeing Americans pay high gas prices continue. Because they're so scare of losing money, perks and votes they must stand strong and defeat the American dream of more gas at a cheaper price."
Not only do I blame Clinton I also blame Obama, I KNOW he also had a hnad in it. Is it me or does the above quote make any sense whatsoever? The more comments I read the more stupid they seem to be.
That's Rich...
Bill Clinton and Obama are the reason gas prices are high. Yea, they single handedly thwarted big oil from getting at more oil. Now let us not even mention that from 2001 to 2007 the Repubs completely controlled DC-both houses of Congress and the Whitehouse. What exactly did they do during that time? The fact is there are so many facets to what is happening with oil that fault lies everywhere you can look. McCain puts out a mind numbing commercial saying Obama is to blame for high oil prices and then follows it up saying Bush gets credit for the retreat in pricing. Yet the announcement from Bush about opening acreage came out several days after the initial and largest market retraction in oil pricing. Do not buy into the lies. Anyone with such simple analysis of the situation is simply pandering to get votes and is not serious about resolving the issue. Straight talk my bootie.
Hatteras - karma at work
Glad to see tourism down there. Their ignorant attitude towards island guests has left a bad taste in my mouth. The island can rot for all I care. Besides, those who actually care about the environment aren't welcome anyway.
Oh, yeah...spending a week in Kitty Hawk in August and a week in Vegas in September. Life is too short. I'm not going to fret over a few extra bucks in gas. Carpool, folks. Sell your SUX 9000 and get a hybrid or at the very least an economical model. Unless you're the Brady Bunch or a soccer coach why does a family of four need and eight seat behemoth?
coulda fooled me
At the oceanfront, maybe more people are eschewing hotels for condos where they can book a better place for the same or less money and be able to cook their own food every day to save some money. That is what my sister and her family are doing here for their vacation next week. This is their first time renting a condo instead of a hotel at the boardwalk.
I see no change from a year ago
Every Saturday it's the same thing till the end of summer. The 168 bypass is full of cars, SUV with luggage carriers and of course those huge campers heading to the OBX and the ones leaving the highly overbuilt commercialization in the Mid Atlantic east coast. All but a few are out of states tags on those week long warriors rides. I avoid the OBX like I do VBH. I vacation in Florida because they have beautiful beaches, no over development and parking too!
Walking the beach
After having to dodge getting hit by some of those crazy on-the-beach drivers, we gave up going to the Outer Banks for long, peaceful beach walks. And with the added attitude towards those that are wildlife supporters, that gives us more reasons to not go and spend our money at the Outer Banks. I do believe there should be beaches where people can drive their vehicles, but those who do should be respectful of those who walk the beach too. Bad treatment and bad attitudes never attract tourists: they drive them away. One has to wonder how long it will take the 'Bankers to learn that.
I just love Virginia Beach.
The crystal blue water. The platinum white sand. The gentle, peeling waves pidder, pladding down the shoreline. It's quite heavenly.
Vacation vs Gas
You can blame or thank Bill Clinton, Obama and the other democrats who like seeing Americans pay high gas prices continue. Because they're so scare of losing money, perks and votes they must stand strong and defeat the American dream of more gas at a cheaper price. Wind mills and solar power will not fill your gas tank up while you're heading to your vacation spot. Continue being fooled by these people and you're continue paying high gas prices on your vacation.
waste of resources?
We enjoyed our drive to California by coming up with an alternative fuel that uses those stupid, annoying OBX stickers.