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Early Returns Don’t Predict a Sizzling Summer

Early Returns Don’t Predict a Sizzling Summer

Tourism: Still, Hotel Occupancy in July and August Looks Strong

BY TANYA RODRIGUES

Staff Writer

With the summer tourism season kicking off Memorial Day weekend, the forecast for leisure business for local hotels and attractions is for flat if not slightly increased sales.

It follows a mixed review of the first four months of 2002, which indicated drops in several important areas.

Overnight visitors declined by 5.5 percent to 3.2 million and visitor spending dipped 6.5 percent to $1.16 billion.

Then there are fears of random terrorist attacks could bring the industry to its knees once more.

Earlier this month, the Travel Industry Association released summer projections of a slight increase in travel. According to a study the organization did of 1,300 adults, Americans are planning to take more than 233 million person-trips during June, July and August. A person-trip is one person traveling more than 50 miles one way.

The numbers are up 2 percent over the same poll last summer.

“The issue is not whether Americans will be traveling for pleasure this summer , because we think they will,” said Suzanne Cook, TIA’s senior vice president of research. “The issue is really how they will travel, where they will go and what they will do when they get there.”

Shorter Trips Planned

The TIA found that travelers plan to make shorter trips, spend less money and stay closer to home.

Kerri Verbeke Kapich, vice president of marketing for the San Diego Convention & Visitors Bureau, described the research ConVis has on the summer as “optimistic.”

People visiting family and friends will be particularly strong this year, Kapich said.

“We’re hopeful that the trends we’re seeing projected for the national level will also be reflected in San Diego,” she said.

Local hotels, especially in the beach areas, have told the bureau that occupancy in July and August looks strong, Kapich said.

At the Hotel del Coronado, confidence about July and August had been tempered with uncertainty for June’s prospects, said Michael Hardisty, managing director of the corporation that runs the hotel. The hotel is owned by Los Angeles-based Lowe Enterprises.

Now, he said, June’s reservations have increased. Hardisty attributes the upswing overall to “somewhat of a robust recovery in the leisure market.”

Last fall, heading into the end of the year, the Del marketed heavily to driving-distance markets in Southern California and Arizona, and Hardisty said it’s paying off now.

Corporate Travel

Remains Uncertain

Corporate travel remains uncertain, so Hardisty said there’s more concern about the fourth quarter of the year, which is far more dependent on business travelers.

This summer, Legoland California is budgeted for a 2 & #733; percent increase, and is expecting a lot of drive-in business from the Western states, such as Utah, Colorado, Arizona, Oregon and Washington, said park President Bill Haviluk.

Still, Haviluk’s expecting an increase in tourists flying in, buoyed by developments such as Southwest Airlines’ new flights between San Diego and Chicago.

According to Hardisty, the incident-free Winter Olympics in Salt Lake City restored consumers’ confidence in travel.

Reports this month of possible terrorist attacks in the United States could damage that progress, he said.

“Hopefully that will just get everybody to reemphasize vigilance and awareness of security, and it won’t dissuade them from traveling,” Hardisty said.

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