The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, May 25, 1996                TAG: 9605250515
SECTION: LOCAL                   PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY LANE DEGREGORY, STAFF WRITER 
                                            LENGTH:  119 lines

OUTER BANKS EXPECTS A BIG SUMMER WEATHER AND THE OLYMPICS HAVE SLOWED THINGS. BUT BY JULY 4, ESPECIALLY WITH GOOD WEATHER, TOURISM IS EXPECTED TO JUMP.

Record cold temperatures across the East Coast last winter, cool drizzle through most of the spring and hurricane threats last summer have slowed the Outer Banks' economy over the past eight months.

Many northern schools will be staying open late into June to make up for missed snow days. And with the Atlanta Olympics holding the spotlight in August, sections of this summer may also be slow.

But if the sun continues to shine over barrier-island beaches this Memorial Day weekend, Outer Banks tourism should pick up - it may even slightly surpass last year, say Dare County business leaders.

``If that big eye in the sky don't shine, we don't make any hay,'' said Outer Banks Chamber of Commerce spokesman John Bone this week. ``The summer season means everything to us. And Memorial Day Weekend through Labor Day are our most productive months.

``It's been miserable so far,'' Bone said. Occupancy taxes from January through March were down 22 percent from the same time last year, he said, and food and beverage tax revenues fell 4 percent.

``But we expect to have a very good year overall,'' said Bone. ``If we have good weather, we'll get the crowds.''

Traffic was picking up on U.S. 158 bypass Friday afternoon. Cars filled with coolers and kids were bound for Outer Banks beaches.

Traditionally, Memorial Day weekend kicks off the area's tourism business, then drops a bit some until schools dismiss students in mid- to late June.

And by July 4, tourism experts predict 150,000 to 200,000 vacationers to fill Outer Banks beaches each week - a huge increase compared with the estimated 25,000 year-round residents.

Most hotel rooms and many rental cottages already were booked by Friday. And dozens of new restaurants and shops have opened.

``We're optimistic that everyone who went stir crazy over the winter with all the snow, ice and cold will be ready to enjoy our beaches and attractions,'' said Dare County Tourist Bureau spokeswoman Rebecca Moore.

Among other attractions, there's a new high-tech tackle shop in Nags Head, a smoking volcano miniature golf course in Kill Devil Hills, an upscale restaurant and wine bar in Corolla, a row of new oceanfront rental cottages in Nags Head, and a Holiday Inn Express in Hatteras Village.

To attract more visitors, Outer Banks tourism officials increased their print advertising budget from $220,000 spent in the 1994-95 fiscal year to $285,000 this year. That money comes from occupancy and meals tax revenues. It went primarily to buy ads in Richmond, Raleigh and Washington, D.C.

Already, Moore said, telephone requests have shown that at least some of that spending paid off. Between March 16 and April 15 in 1995, 14,281 people called the Tourist Bureau seeking Outer Banks information. During the same period this spring, 15,576 inquiries were logged on the toll-free telephone line - about 9 percent more than last year.

``It's shaping up to be a real strong season,'' Hatteras Island Realtor Tim Midgett said. ``There's been an excellent show of people all week.'' ``The Outer Banks is becoming more and more of a vacation destination for new market areas. More people from North Carolina are calling and booking cottages every week. We've tried to tap into that state-wide market for years. And now, suddenly, there seems to be more of an awareness of us.''

Ramada Inn owner Sterling Webster agreed. A member of the Dare County Chamber of Commerce's Executive Board, Webster said tour group travel has begun growing as early as May. And the summer-like temperatures of the past 10 days have immensely helped reservations. ``Our summer season bookings are up 50 percent - just from this past week - from what they were a year ago at this time,'' Webster said from his Kill Devil Hills hotel Friday. About 4,700 hotel and motel rooms line the Outer Banks from Corolla through Ocracoke. In the same area, 14,000 rental properties accommodate vacationers and seasonal visitors.

``June is starting to fill in a bit more recently. But the reservations seem to be coming later because schools are running so long,'' said Re/Max Property Manager Linda Hess, who oversees 320 rental cottages from Duck through South Nags Head. ``We have had a lot of first-time callers, though, who want to come to the Outer Banks and have never been here before.''

Sun Realty Rental Manager Betsy Taylor said she was experiencing the opposite in reservations: ``We've got spots here and there for June,'' she said of her company, which manages 1,100 properties from Corolla through Hatteras Island. ``But early June is usually hard to book and this June looks somewhat better than last June.

``I'm surprised we still have some oceanfront units left for August, though,'' Taylor said. ``The Olympics might have had some impact on us that we hadn't counted on. . . . In the end, I predict this summer season will be about steady with last year for us.''

Alex Risser, owner of Outer Beaches Realty, which manages 415 properties on Hatteras Island, agreed. He said bookings are about equal so far with 1995 numbers.

``A lot of people canceled or moved around spring vacations because of school schedules,'' Risser said Friday from Avon. ``Memorial Day Weekend is not as good because people don't seem to want to travel in holiday traffic. .

Nags Head restaurateur Mike Kelly forecasts 4 to 7 percent growth in food sales this summer. But, like rental cottage managers, he said final numbers will probably be affected by the new eateries.

``I don't know that the overall increase will translate to the same jump for each restaurant,'' Kelly said.

``There's probably about a 1 to 3 percent price increase across the board - due to food and labor cost hikes - that will bring revenues up. But with the changing of hands of some establishments, and other new operations opening, they'll all begin to attract trade for themselves, too. The major effect won't be felt during the peak summer demand. But we'll all probably start experiencing it in September and the off-season. I really do think that 1996 is gonna be a good year.''

Kelly, like most Outer Banks residents, said he hopes he doesn't hear ``the H-word'' this season. Hurricane scares frightened many would-be vacationers away from the barrier islands in late August last year. Everyone hopes the storms will steer clear of their area.

``People always are optimistic in election years,'' Kelly said. ``I'm predicting a strong season for us all. We've had good traffic all week already. I really enjoy it when you can't get out on the Bypass. It makes you look forward to the summer that much more.'' ILLUSTRATION: Color photo

DREW WILSON/The Virginian-Pilot

Traffic moves along U.S. 168: ``We're anticipating travel will pick

up and be good for the summer,'' said Rebecca Moore of the Dare

County Tourist Bureau. As for this weekend, most hotel rooms and

many rental cottages were booked by Friday.

KEYWORDS: TOURISM OUTER BANKS NORTH CAROLINA

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