DATE: Saturday, August 16, 1997             TAG: 9708160243
SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY DEBBIE MESSINA, STAFF WRITER 

DATELINE: VIRGINIA BEACH                    LENGTH:   77 lines

THE TOURIST ATTRACTION VIRGINIA IS ENJOYING A RECORD-SETTING SEASON.

Pleasant weather, new attractions and an aggressive marketing campaign have set the city's tourism industry on a record-breaking pace this year.

Resort-area hotel occupancy is up 3 percentage points, from 59 percent to 62 percent, between January and July over the same period last year.

Room nights have jumped 5 percent, from 607,488 rooms rented to 639,062 rooms rented for the first seven months of 1997.

``That's pretty good,'' said James B. Ricketts, Virginia Beach Convention and Visitor Development director. ``When you get into room nights and occupancy, success is measured in very small percentages. If you're up 1 percent on room nights, you're doing pretty good.''

Likewise, hotel receipts rose 6.2 percent, and restaurant receipts are up 4.2 percent citywide through July.

About 75 percent of these revenues are generated in the resort area, Ricketts said.

``Short of something happening, it looks like it's going to be a banner season,'' said James H. Capps, president of the Virginia Beach Hotel and Motel Association and operator of the Breakers Resort Inn at 16th Street.

Despite the sanguine financial report, some resort merchants say business isn't so good. While overall sales are up, competition among restaurants and shops has resulted in smaller profits for some.

``Unlike the hotels, it's not a banner year, but it's not the worst year we've ever had,'' said Michael Lagiglia, president of the Resort Retailers Association. ``It is better than last year.''

Tourists are important to the city, representing about 12 percent of Virginia Beach's economy.

Last year, 2.2 million visitors spent about $500 million in Virginia Beach, according to a 1996 Economic Impact Study conducted by Old Dominion University. Both spending and the number of visitors have increased over the past 10 years, with dips in 1989, 1990 and 1991 because of a weak economy.

Businesses in the resort area credit the weather for the influx of visitors. But they also cite $100 million in improvements, including an Atlantic Avenue facelift, the expanded Virginia Marine Science Museum and the GTE Amphitheater. A stepped-up, $4.4 million advertising campaign, fueled by an increased lodging tax, has attracted visitors too, business owners said.

Plus a new, wider boardwalk stretching from Eighth Street to Rudee Inlet has drawn rave reviews. The entire boardwalk will be replaced as part of a $103 million hurricane protection project to be completed in three years.

``I think we're on the right track,'' Capps said. ``So many good signals are being sent from Virginia Beach now. The museum. The amphitheater. The boardwalk. The new golf courses coming.''

That positive feeling, however, is not as prevalent in resort shops and eateries, where sales are not as strong.

``It's a mixed bag,'' Lagiglia said.

Gone are the days when tourists lined up outside restaurants and crammed into resort strip shops. Lagiglia closed his Beach Bumper Boat business due to poor sales and opened a parking lot.

It's not that there are fewer tourists, but there are more businesses vying for their dollars. Lagiglia said the number of gift shops has doubled since 1985.

``Used to be that I was the only one who sold drinks within a few blocks. Now everyone's carrying drinks,'' said Ted Pletcher, owner of Aunt Anne's pretzel shop at 14th Street and Atlantic Avenue.

Ricketts said he was aware of the increased competition and was sensitive to merchants' complaints.

On the other side of the water, Colonial Williamsburg is enjoying a reasonably good tourist season, with visitorship up over last year. Busch Gardens Williamsburg officials say their park is experiencing a record-breaking season with the opening of Alpengeist, the world's tallest, fastest, most twisted inverted roller coaster. ILLUSTRATION: [Color Photo]

D. KEVIN ELLIOTT/

The Virginian-Pilot

Tourists are important to the city, representing about 12 percent of

Virginia Beach's economy. Last year, 2.2 million visitors spent

about $500 million. KEYWORDS: TOURISM ECONOMY

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