The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, February 24, 1995              TAG: 9502240596
SECTION: BUSINESS                 PAGE: D2   EDITION: FINAL 
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER 
DATELINE: VIRGINIA BEACH                     LENGTH: Short :   50 lines

BEACH TOURISM UP IN '94 DESPITE SUMMER RAINS, STATISTICS SHOW

Although resort retailers complained that last summer's rains hurt their business, statistics released Thursday show that tourism in 1994 topped 1993's record levels.

Business was up in hotels, restaurants and stores citywide; tourists spent more per night and were more likely to say they'll come back, according to a presentation by the city's department of Convention and Visitor Development.

``We had a strong season,'' James Ricketts, department director, told an audience of about 50 hospitality executives. ``It was comparable to (1993), which was our best year ever.''

Hotel receipts were 3.7 percent higher in 1994 than 1993, restaurant sales were up 4.6 percent and preliminary numbers show citywide retail sales grew 10 percent, he said. Room bookings fell slightly, but the annual occupancy rate remained steady at 59 percent.

David Groth, president of the Resort Retailers Association, said that Oceanfront retailers did not share in the bounty.

Retail may have been up citywide, but midsummer rains dampened sales on Atlantic Avenue, he said. Tourists don't buy beach chairs, towels or bathing suits - the most expensive beach shop items - on days too wet to use them, said Groth, who owns David's Beach Shop.

``I think it was a decent season for motels and restaurants,'' he said. ``I don't know of anyone who was up in retail.''

City officials were guarded in their projections for the coming tourist season. A. Palmer Farley, partner with Barker Campbell & Farley, the convention and visitor department's advertising agency, said that the strong American economy and a falling Canadian dollar is expected to hurt local tourism.

A growing U.S. economy means people will have the money to take expensive vacations farther away, Farley explained. Tourism from Canada is also expected to decline this year, he said, because a weaker Canadian dollar makes vacations here more expensive.

In response, the city is launching an aggressive advertising campaign and is working jointly with other cities and attractions in the region to magnify promotional dollars.

The local ads portray Virginia Beach as a great place for a family vacation, and the regional ones focus on Hampton Roads' attractions for kids.

KEYWORDS: TOURISM by CNB