Outer Banks' tourism up in June despite economy

By Ryan Hutchins

There were fears that 2008 would be a terrible year for the tourism industry on the Outer Banks.

There's been plenty to worry over - such as spiking gas prices, a shaky economy and closed beaches. Two raging wildfires in the region weren't likely to help, either.

But it appears that all that hasn't prevented vacationers from packing North Carolina's coastal communities more than they did last year. Restaurants, however, have seen a slight dip - indicating that tourists might be spending less money when they get here.

Gross occupancy receipts in Dare County increased by more than 7 percent in June over a year earlier, according to statistics compiled by the Outer Banks Visitors Bureau.

The first half of the year was up more than 4 percent, with about $107 million pouring in.

"It kind of reinforces the viability of the destination," Carolyn McCormick, the agency's managing director, said Friday.

Camping sites, cottages and the motel-hotel groups saw declines in June.

However, rental homes were up more than 10 percent in June. The properties brought in more than $56 million, or nearly 86 percent of occupancy income for the month. Time shares and bed-and-breakfasts also jumped.

Occupancy also is up on Hatteras Island despite portions of the national seashore closing in April because of a legal agreement. Some officials have bemoaned the closures, intended to protect birds and turtles from beach drivers.

L ast week, Warren Judge, chair of the county Board of Commissioners, spoke in Washington before a Senate subcommittee, telling lawmakers that the closures had "battered" the local economy.

Vice Chair Allen Burrus, whose family has owned the Red and White grocery store in Hatteras Village since 1866, gives a different perspective.

"I own a small mom-and-pop grocery store, but I'm doing well," he said on the phone Friday. "Business is up."

However, he said more expensive items - such as steak - haven't been selling as well this season.

Restaurants have seen a dip in gross receipts, falling more than 1 percent in June over a year earlier. Meals were somewhat flat for the first half of the year - down 0.65 percent at $75.8 million.

Some of the moderate to higher-end restaurants have noticed the pinch.

At Tale of the Whale Restaurant in South Nags Head, owner Dan Bibey said during a phone interview that business is as expected - it's down.

"It's not terrible, but it's also not one of our banner years," he said Friday.

W hat wasn't expected are the fluctuations the business has seen this season, he said. "This year you have one day that you're really slow, compared to other years, and then the next you're really busy."

Bibey, whose restaurant sells entrées costing around $20 and has a "lighter fare" menu, said he hasn't taken any unusual measures to attract customers, though he has seen other places do so.

Business also has been a bit slower this year at the upscale Ocean Boulevard Bistro & Martini Bar in Kitty Hawk, owner Donny King said during a phone interview.

"We're hanging in there," he said. "We're not meeting the gains we'd like, but business is steady."

In the past, King said, he has had a lot of repeat customers who come back each time they vacation on the island. That's changing, though, he said.

"We've noticed we're getting a little bit of newer clientele and losing some of our old clientele," he said.

July has typically been the busiest month for occupancy and meal receipts, and success in July is usually previewed in June. Since 1994, there has been only one year when June occupancy increased from a year earlier but July's didn't. July meal receipt activity has also typically mirrored the previous month.

Retail indicators aren't available yet for the second quarter, but McCormick expects they won't look as good.

"I don't think retail has fared as well, but I don't know 100 percent," she said.

She expect s that the remainder of the season will be decent, at least when it comes to filling rooms and houses.

"I'm cautiously optimistic," she said.

Ryan Hutchins, (252) 441-1627, ryan.hutchins@pilotonline.com