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March Posts Good Numbers for TourismBy Desiree Parker Saturday, April 24, 2010 Williamsburg area hotels have seen another month of higher room occupancy, according to March’s Smith Travel lodging report, and Busch Gardens was the likely stimulus.For years, the local hotel industry has seen sinking occupancy rates, with the recession plunging numbers even lower. However, December and January saw occupancy numbers that weren’t down for the first time in a long while, and now March is looking a bit better, too. December was up 15 percent over 2008, which Hotel Motel Association President Chris Canavos chalked up to the opening of Christmas Town at Busch Gardens. March occupancy numbers are up 7.6 percent from last year, and Canavos says Busch Gardens staying open all week for Spring Break is the likely reason. “It just shows you that when the park opens earlier, it really makes a difference,” he says. March and April are key indicators for how the year is likely to shape up, according to Canavos. Generally the two months are looked at together, because Easter can fall in either month. So far, April isn’t looking great – as of April 17, occupancy is down four percent compared to last year. Canavos also points out that these numbers are based on the abysmal occupancy seen during the first full year of the recession, and a better indicator of how the area is doing is to look at the Williamsburg area in comparison to its neighbors (and competitors for overnight visitors) like Newport News and Virginia Beach. In January and March, occupancy rates in Williamsburg were higher than in neighboring areas, which had’t been the case most of 2009. Canavos says June and July are good months to get a feel for the year’s trend, but he’s glad to see some improvement early in the year. The HMA aims for an occupancy rate of 58 percent, the number at which a hotel can make a reasonable profit. Even with better occupancy in March, 70 percent of area hotels are still under 40 percent occupancy; only 16 percent are at 55 percent or over. Year-to-date, 85 percent of hotels are under 40 percent occupancy, and only one hotel is at 50 percent or better occupancy. |
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Comments
what they don't tell you is that this huge 7.6% increase in occupancy took us from 28.9 % to a whopping 31.1% Say what would like to congratulate the leadership on all of their hard work. I would like to say that at 31.1% occupancy continues to be the worst in the state and swimming at the bottom of the barrel for tourist destinations in the entire country. These minor increases will be the type of mediocrity that we will slap each other on the back and tell ourselves how smart we are and isn't it wonderful. At the same time Virginia Beach which averaged over 50% occupancy in March and other destinations that actually have good leadership will be laughing all the way to the bank.