Resort towns are facing the reality that with a struggling economy and record fuel prices, Americans are predicted to travel less this summer.
This Memorial Day weekend, the traditional kick-off of the summer travel season, merchants in the northern Wood River Valley reported a mixed bag of business successes.
"There are a lot of factors at work," said Sun Valley-Ketchum Chamber & Visitors Bureau Executive Director Carol Waller. "This year we've got the economy as the huge issue. The weather this weekend—I know the weather affected a whole lot of campers. Memorial Day is typically a big weekend for camping for our regional visitors, and that just wasn't the case."
Waller said that while summer business could be good, "it would be a stretch to expect a record-setting summer—anywhere."
"Even though we might not be on pace for a record-breaking summer, if you look at what happened to our community in the six months to a year after 9/11, we were down initially. But our community was at total off less than 10 percent, which was significantly better than I thought we'd do."
Waller said she expects this summer's business to be similar to the months following the 9/11 disaster.
AAA-Idaho reported last week that Memorial Day weekend travel was predicted to decrease nationwide this year. Based on a nationwide survey conducted by the Travel Industry Association, AAA estimated that 37.87 million Americans would travel 50 miles or more from home, a decrease of nearly 360,000 travelers from last year's 38.23 million.
The travel organization said the 0.9 percent decline is not significant in size, but does suggest that a weak U.S. economy and high gasoline prices, coupled with higher costs for accommodations, food, car rentals and other travel services, are having some effect on typically resilient holiday travel.
"Many Idahoans feeling the pinch of record high gas prices are deciding whether to travel this holiday, or to find ways to make the travel fit the size of their wallet," said Dave Carlson, AAA Idaho director of public relations and government affairs.
AAA noted, however, that the West appears to be the region least influenced. Motor vehicle travel in the West was projected to be off by only one-tenth of a percent, the lowest of five geographic regions analyzed. The West was also expected to produce the largest number of air travelers with 1.4 million, a 0.2 percent decline from a year prior.
"Consistent with longer-term trends, and based on anecdotal information from our travel planners, we believe Idaho travelers this holiday will opt for camping trips close to home," Carlson said.
Based on AAA's Daily Fuel Gauge Report, Idaho's average price for regular grade gasoline is $3.70, up 40 cents since April 1 and 50 cents higher than the record prices set a year ago. The U.S. average price was $3.94 on Tuesday, up more than 70 cents from a year ago.
Record high crude oil prices, currently averaging about $125 a barrel, are driving record pump prices throughout the country, AAA said.
Waller said the chamber is working on promotions to attract more regional travelers.
"We typically don't do a whole lot of advertising in the summer, but this summer we feel like we need to reach our close-in neighbors," she said. "We're a great way to get a little vacation without a whole lot of expense.
"People won't stop traveling, but there will be more closer-to-home trips, and people will be watching their discretionary spending."
Part of the chamber's summer marketing strategy is to promote the free events and amenities, like the Sun Valley Summer Symphony, and hiking and mountain-biking opportunities in the Wood River Valley.
"We're trying to hook people by saying there are opportunities for free recreation and entertainment up here, too," she said. "So there are many things to be positive about."
Campers and boaters descend on Magic Reservoir over Memorial Day weekend to celebrate, commemorate and recreate. An annual West Magic boat parade was held Sunday, followed by a memorial service and barbecue. Industry experts predict more close-to-home travel this summer as the stagnant economy and record-high fuel prices pinch people’s wallets.
Photo by Willy Cook
