Small businesses lifted by return of summer tourists – KIRO 7 News Seattle

Small businesses in the US that rely on tourism and vacationers say business is recovering as Americans rebook postponed trips and spend free on food, entertainment, and souvenirs.

U.S. states and cities have eased many of their restrictions on crowd size and the wearing of masks, a positive sign for businesses that struggled for more than a year when theme parks and other tourist attractions closed.

Still, returning to “normal” before the pandemic is a way out for most. There are few business travelers and international tourists. Many companies struggle with staff shortages and other challenges. And if a surge in the more contagious Delta variant or another variant of the coronavirus forces states to re-issue restrictions or bans, progress could be lost.

The US Travel Association, a travel trade group, predicts that domestic travel spending will reach $ 787 billion in 2021. That is 22% more than in 2020, but still 20% less than in 2019. The association predicts that travel spending will not rise entirely above 2019 levels by 2024.

In Santa Fe, New Mexico, Jenny Kimball, co-owner of the 180-room independent hotel La Fonda on the Plaza, said her hotel sold out in the summer and an average of 90% full in the fall. This is a welcome change from the two or three guests the hotel had at any given time as it stayed open during the height of the pandemic.

“It’s insanely busy, it’s wonderful, everyone is happy,” she said.

The clientele is different than it was before the pandemic: there are more families and people working remotely and they stay longer, an average of four or five nights compared to two or three.

“Families want to stay longer and really want to vacation and see more of the city and more museums,” says Kimball.

Kimball’s biggest problem: a labor shortage in the restaurant, bar and kitchen. She urged vacationers to be patient.

“After such a terrible year, it’s very difficult to have the demand and not be able to meet it because we don’t have 100 percent staff yet,” she says.

Heather Bise owns and operates a 7 bedroom bed and breakfast in Cleveland, Ohio, near the Rock and Roll Hall of Fame. It opened The House of Bise Bespoke in 2019 and was aimed at international tourists who drew guests from New Zealand, Botswana, Eastern Europe and other far-flung places.

Cancellations started in January 2020 and they refunded guests thousands of dollars.

So Bise revised her business model and rented out the whole house. Ohio lifted mass gathering restrictions in March and the Hall of Fame reopened in June. Business has recovered in the past two months – so much so that she earned more than she was before the pandemic. The demand is so great that it has increased prices and switched from breakfast and dinner to breakfast only.

But their guests are all from the US now, usually families meeting for a reunion or wedding party – which now make up 60% of their business. She fears that the wedding business will disappear after the summer and autumn.

“Let’s just hope people have weddings in January,” she said.

Many owners are pleasantly surprised by the surge in domestic tourists, but still have to meet business and overseas tourists before business returns to normal. This can take some time. While improving from 2020, the USTA estimates that business travel spending this year will be less than half of the $ 270 million of 2019, and international travel spending will be about a third of the $ 179 million that were issued two years ago.

Martha Sheridan of the Greater Boston Convention & Visitors Bureau said the Boston tourism industry relies on “leisure visitors” – families who travel to the city to see attractions, couples on vacation and women who do “girls’ weekends.” This means that weekend business is strong, but mid-week business is still “significantly lower than normal”.

That could change, she said, when conventions resume in late July.

Due to the pandemic, Boston Duck Tours has lost the large groups it normally counts on – not just people from international cruises in port or around town for business trips, but students on school trips as well. The tour group has offered land and water tours in the Boston area every year since 1994.

Business is about 80% of 2019 levels, with 21 of the 28 duck boats – which can operate on land and water – operating at about 75% capacity. But vacationers have come back strong, said Cindy Brown, the company’s CEO.

“We weren’t sure how busy we would be,” she said. “I was shocked to see how many people enjoy traveling, seeing sights, and getting out of their homes.”

And so far, tourists have been liberal with their expenses, say small business owners.

Denise Quinn owns The Gilded Oyster jewelry store in Falmouth, Massachusetts, which has Cape Cod vacationers for much of its business.

Since Massachusetts dropped its mask mandate and indoor and outdoor gathering restrictions in May, shoppers have been flocking and spending more.

“Now it’s just great to be here, we’ve opened up and the wearing of masks is complete,” she said. “Vacation apartments and inns are all fully booked and people want to do something good for themselves.”

People are spending more in the store, she said, and buying multiple items instead of just one, including gifts for themselves and others.

“The average price is definitely higher,” she said. “People come to do something good for themselves and to get a reminder of their time in the Cape.”

Quinn says she is concerned that COVID cases are picking up again and hopes to continue business operations even if restrictions are in place. If necessary, she is ready to resort to masking, online shopping, roadside pickup, and home delivery to keep business going.

Alan Dietrich, CEO of Crater Lake Spirits in Bend, Oregon, which has two tasting rooms for tourists visiting the area, said he has seen a surge in demand since pandemic restrictions were completely lifted before July 4th.

“Every minute we’re open we see people coming in,” he said. “People have been locked up for the past 14 months, eager to do something. The only limiting factor is the staff. “

He also sees people spending freely. In Bend, the average price of a main course has risen by $ 3 and the price of a cocktail has increased by $ 1 due to staff shortages and higher food wholesale prices, says Dietrich, who also sits on the board of Bend’s tourism development group.

“Nobody shies away at the prices at all,” he added. “Nobody cares what that stuff costs, people are just happy to be out and about.”

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