Chattanooga: Effect of higher gas prices on tourism hard to predict

By: Brian Lazenby
(Contact)

Rising gasoline prices did not deter Mary Dykes from loading her family into the car last weekend for the more than 400-mile trip from Pascagoula, Miss., to Chattanooga.

She came to bring her son to see Thomas the Train Engine, who was appearing at the Tennessee Valley Railroad Museum, and other area attractions.

“Thomas the Train is only in the area about once a year, and the little guy just had to see him,” she said.

However, Ms. Dykes said she probably won’t take another vacation until December — but not because of rising gasoline prices.

Staff Photo by Kelly Wegel-- Children and adults gather at a waiding pool at the Tennessee Aquarium. Officials at area attractions said they are seeing fewer visitors from far away and more from the area.

Gregg Laskoski, spokesman for AAA, said Ms. Dykes is not unlike many of the auto club’s members, who claim they are not planning to change their vacation plans.

vacations less price sensitive

“When it comes to doing the things people have to do Monday through Friday, to get the kids to school, to get to their jobs, to run their errands, people are pretty disgruntled and want to cut back as much as they can,” he said.

But when it comes to a discretionary use of the roads, as a family and especially with children involved, they are going to resist very strongly anything that affecting a planned vacation, Mr. Laskoski said.

Mr. Laskoski said a recent survey showed that 30 percent of AAA members are not planning to alter their summer vacation plans, yet about 40 percent said they will travel to places closer to home.

He pointed out that gas prices, even well beyond $3 a gallon, are a relatively small portion of vacation costs. The bulk of vacation spending is for hotel accommodations and food, he said.

Gas prices typically increase every year from March to May and drop again after Labor Day, but Mr. Laskoski said things are different now.

The March to May increase is usually tied to supply and demand, but this year the increase is due to a rally in crude oil, he said. Also, prices didn’t drop last fall as they typically do, Mr. Laskoski said.

“What is happening now is happening for very different reasons than what we have seen in previous years,” he said.

Cindy Todd, director of marketing for the Tennessee Aquarium, said it is too early to predict what the summer season will look like, but there have been fewer visitors coming from far away.

“We have seen a trend since spring break where we are seeing more local visitors, but fewer coming from out-of-town,” she said. “That is concerning to us because we are seeing stories about how people are holding off on spending.”

Local figures seem solid

Karen Baker, spokeswoman for Rock City and Ruby Falls, said it is hard to predict how gas prices will affect visitors. While it appears some travelers are staying closer to home, visitors from Chicago, Cleveland and other distant cities are still visiting here, she said.

“We are seeing a downturn on certain days and above projections on other days, so it is really hard to tell,” she said.

Bob Doak, president of the Chattanooga Area Convention and Visitor’s Bureau, said it is difficult to predict what gas prices will do to area tourism because he feels consumer confidence and the economy as a whole have a greater impact on what people do and where they travel.

However, he is worried tourism could drop if gas prices top $4 a gallon by summer’s end.

“That will put us in a unfamiliar situation,” Mr. Doak said.

Most area attractions have reported they are at or above where they were at this time last time, he said.

Hotel tax collections for January to March are up 9 percent over the same time last year, Mr. Doak said.

“That’s certainly a good indicator that we are still getting the hotel stays,” he said. “We’re hoping for a banner year again.”

Bobby Parker, owner of Parker’s Brainerd Citgo on 3660 Brainerd Road, said the gas price situation is bad, but it does not compare to the energy crisis he weathered in the 1970s.

Mr. Parker, who has been in business here since 1971, remembers during 1973 when he would only be shipped a small percentage of the gas he had ordered. The rationing caused him to only sell a certain number of gallons a day or sell gas only on Mondays, Wednesdays and Fridays.

“The deal back then was they said we had a shortage of fuel,” he said. “It got to the point where we couldn’t get enough.”

Mr. Parker and employees would park cars blocking his parking lot on days he was not selling fuel to prevent what happened on days they were selling when 30 to 50 cars would be lined up to buy fuel.

“It was crazy back then,” he said. “They would line up into the street to get it. It got to be a real problem.”

Mr. Parker said he believes the only way out of the current situation is for consumers to conserve fuel.

“People don’t seem to be very much into that. Cars keep getting bigger and bigger. It’s a mess,” he said. “We just need to do what we can and conserve as much as we can. That’s the only thing that is going to help.”

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