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Tourism outlook uneasy in troubled economy
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Tourism and the economy
With many conventions booked months in advance, the downturn in the economy has yet to affect area hotels like the Coconut Point Hyatt that rely on group bookings throughout the year which keep the front desk with incoming and outgoing customers. An unstable economy may have far reaching implications for area hotels as people and corporations scale back on expenditures.
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BONITA SPRINGS Troubles on Wall Street and the struggling U.S. economy have Southwest Florida hoteliers uneasy about the upcoming winter season.
Heading toward November, many are taking a wait and see approach.
“I think there’s still a question in the air,” said Bob Delaney, general manager of the Hampton Inn in Bonita Springs. “People don’t know what will happen with the election and the bailout, but I think in the next month we’ll know better where we are going.”
Delaney said business at his hotel is starting to pick up after a traditionally slow September, but the economy has him worried.
“Last year we had the real estate downturn, which really hurt us, and now it’s Wall Street,” he said. “It’s been kind of a double-whammy.”
Delaney said it is too early to tell whether northerners will feel good enough about finances to travel south this winter and spring. But one positive sign are strong group bookings at the larger hotels.
“I’ve heard they are looking at a pretty good season as far as group bookings,” he said. “That’s why I’m saying season could be a bit better for us this year than last year. But it’s not going to be what we need. It’s not going to be gangbusters.”
Group bookings are solid at the Hyatt Regency Coconut Point Resort & Spa in Estero, said Joe Thompson, director of sales and marketing. But he’s also waiting to see if leisure travel follows suite.
“The group business is dependent on the economy, but most of the larger conventions book six months ahead so it hasn’t been affected by the recent crazy news,” he said. “We haven’t had any group cancellations yet, but what we are worried about is what comes beyond this season.”
Like Delaney, Thompson is unsure if families and other vacationers will travel to Southwest Florida in great numbers this winter.
Leisure travelers, who represent 40 percent of the Hyatt’s business, typically book between 30 and 90 days before their planned vacations, he said.
“It’s going to be a tough year,” he said. “But after the election, whichever way it goes, typically there’s a spark for the economy. It’s wait and see. All the resorts are dependent on leisure guests but they haven’t started booking yet.”
Leisure travelers make up between 70 and 80 percent of business at The Naples Beach Hotel & Golf Club, said owner Mike Watkins.
He said bookings are slightly down from last year for both categories.
“They’re down, as they are at most hotels,” said Watkins. “I don’t think anybody is going to have a better season than last year, but our bookings aren’t way down.”
So far, February, April and May have solid numbers while January and March are weak, he said.
His staff is currently developing new specials and advertising packages to help fill the slow months. Discounted fourth nights for guests who stay three nights are one example, he said.
“I think everybody’s affected when you have that much impact on Wall Street,” he said. “It takes a toll.”
Jack Wert, executive director of the Collier, Marco Island, Everglades Convention & Visitors Bureau, said he doesn’t expect a great season but that tourism should remain steady.
“We are projecting pretty much a flat year for 2009,” he said. “We did have a good season last year, overall, and we have good advance bookings for meetings and so forth. From what I’m hearing, cautious optimism would be a way to describe it.”
Wert expects in-state travel to continue to be strong, but the out-of-state numbers in coming months will depend on oil prices and airline fares.
“We don’t know what that’s going to do,” he said. “And election years tend to impact the economy. So there are a lot of unknowns.”







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