Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, February 14, 1991 TAG: 9102140119
SECTION: BUSINESS PAGE: C6 EDITION: METRO
SOURCE: Associated Press
DATELINE: VIRGINIA BEACH LENGTH: Medium
In 1990, Virginia Beach hotel sales amounted to $109.5 million, a 3 1/2 percent decline from 1989, according to figures issued Tuesday by the city's Convention and Visitor Development Department.
James B. Ricketts, the department's director, said it was the first year the city failed to meet year-ago results in the 16 years he has worked with the industry. He estimated such a drop has not occurred since the 1960s.
"We took a real beating last year in our close-in market with a lot of negative publicity," said Linwood Branch, president of the Virginia Beach Hotel and Motel Association.
For the all-important summer season, occupancies dropped three points last summer to 80 percent, a sign of fallout from 1989's Labor Day riots. Despite an extensively organized comeback festival last year, turnout was light.
The lean times shocked hoteliers, who had reported double-digit growth as recently as 1987.
Branch said his organization is asking City Council to add a half percent to the city's 9 percent lodging tax to pay for promotions and special entertainment events to lure tourists.
Ricketts said the prospects for the 1991 vacation season are uncertain, particularly because of the Persian Gulf War.
"Some of the thinking is, with international travel cutting down, people will vacation closer to home," he said. "If the war continues, there is apprehension that people won't travel at all."
July hotel sales fell 12.5 percent compared to the same month in 1989. July is considered the heart of the tourist season.
Restaurants, on the other hand, saw a growth in sales of 3 1/2 percent last year, to $345.7 million, and retail sales were steady.
by CNB