Summertime is almost here. Is your county ready? Many counties across the country are dependent on tourism as a primary source of revenue and view the late spring, summer and early fall season as the period when the most money goes into county coffers. Some counties have taken even greater advantage of the tourists in their communities by adding additional taxes on the activities most used by tourists. These include additional surtaxes on rental cars, amusement taxes, hotel/motel occupancy taxes and prepared meals taxes on foods.

In addition, a large proportion of the sales tax revenue is collected in the summer months in counties that are tourist destinations. Will that be the case this year? The United States has been experiencing the longest period of prosperity in recent history and many counties have reaped huge revenue benefits from the high volume of tourists and the things they buy. Will the recent economic slowdown and the increase in the price of gasoline affect travel this summer?

The Travel Industry Association of America (TIA) recently conducted a special travel poll asking potential travelers about their travel plans for this summer and whether the economic concerns will impact these plans.

The survey found that only 7 percent (10 million) of potential travelers have reduced their plans or plan not to travel at all because of their economic concerns. On the other hand, more than 14 percent of travelers stated they would travel less or not at all because of rising fuel prices.

The poll went on to ask whether economic concerns would change the planned trips in some way. Of those who have already stated that economic concerns will alter their plans, 12 percent plan to take fewer trips than they did last summer. Five percent indicated they would shorten their trips and 4 percent won’t be traveling as far from home as originally planned. Still others indicated they would be spending less money on lodging and food (3 percent) and others (3 percent) said they would be driving instead of flying.

Dr. Suzanne Cook, senior vice president of research at TIA, said recently, “The impact of a slow-growth economy and increasing fuel prices is playing a role in the travel plans of many U.S. consumers. Most Americans, however, indicate that they will continue to travel this summer, but some may simplify or modify their travel plans to fit new economic realities.”

Other data from this report show that travelers residing in the Pacific region, which includes California, Oregon and Washington, are the most likely to say their summer plans will be affected by rising fuel prices. Travelers with incomes below $25,000 are the most likely to say that rising fuel prices will affect their summer travel plans.

Of the nearly 140 million adults who traveled in the past year, more than 20 percent plan to travel more this summer than last. The general reasons for additional travel are more vacation time (29 percent), better finances (14 percent) or people to visit (10 percent).

The Travel Industry Association of America forecasts that even though we have a softening economy and high gas prices, we will see a slight increase in travel for the summer season. They project there will be 230 million person-trips during June, July and August, up nearly 1 percent from the 229 trips made last summer. (A person trip is one person traveling 50 or more miles one way away from home.)

Dr. Cook further said that “the challenge lies with the industry to package the travel product to stimulate demand among consumers interested in economizing and getting the best deal possible for their travel dollars.”

Florida California New York Hawaii Texas Nevada Colorado Virginia South Carolina Washington, D.C.

43 percent 32 percent 12 percent 12 percent 10 percent 9 percent 9 percent 7 percent 7 percent 6 percent

Where will these travelers be going? The TIA reports that the following 10 destinations are the most popular with Summer 2001 travelers:

So, in spite of the slowing economy and the rise in gasoline prices, Americans still plan to travel this summer. Counties that are dependent on tourism for a major part of their revenue may have to work a little harder, but the revenue is assured. Travelers will come this summer.

Information from the Travel Industry Association of America Web site at www.tia.org was used in this article.

(Research News was written by Jacqueline Byers, director of research.)