Tourism in Gulf Shores, Alabama

Good year expected in 2008 despite economic problems in other areas Tuesday, February 12, 2008
By GUY BUSBY
Staff Reporter

Despite a weak national economy, some tourism numbers are up and Gulf Coast officials expect a good year for visitors in 2008.

In 2007, taxable lodging rentals reached about $237 million, up $39 million from 2006, according to Alabama Gulf Coast Convention and Visitors Bureau reports. Even with gasoline prices higher than a year ago, residents expect that upward trend to continue, said Herb Malone, bureau president.

"Overall, 2007 was a record year and we're expecting a good year in 2008," Malone said. "Historically, what we've seen in that area is that when things slow down in the national economy, we still have people. They're still going to travel, even if it's not as far. If things slow down, people might decide that instead of flying to the islands, they'll drive to the beach."

Some of the increase in lodging revenue is because of higher rates. The average daily cost of a hotel room increased from $120.14 to $129 while occupancy rates dropped from 61.3 percent to 57.6 percent.

Malone said some of the change in occupancy rates can be attributed to more units being available because of construction that has been going on since Hurricane Ivan hit the area in 2004. He said that even though prices have gone up, the area is still considered an economical destination.

In 2007, the number of lodging units increased to 15,263 with the addition of 161 hotel rooms and 779 condo units, Malone said.

"They've added inventory. Some of the lower-end priced units that were here before Ivan are gone and the occupancy rates are not quite up to pre-Ivan levels, but they're increasing," he said. "We're still a value destination. The prices of our upper-end units are nowhere near the upper-end units in most places."

While rentals increased during the year, retail sales slowed in the second half of 2007, according to CVB statistics. During the fall of 2007, taxable retail sales dropped 7.8 percent and then fell 8 percent in the winter. Overall, taxable retail sales of $627 million dropped 1.8 percent for the entire year.

Malone said retail sales also include items purchased by local residents throughout the year and can reflect local and national economic fluctuations more than hotel and condominium rentals.

Overall, Baldwin County continues to lead the state in tourism revenue, said Ami Simpson, spokeswoman for the Alabama Bureau of Tourism and Travel.

In 2006, the last year for which complete statistics are available, Baldwin County generated almost 23.5 percent of the state's total tourism income, according to state reports. Tourists spent about $1.96 billion in Baldwin County that year out of $8.35 billion statewide.

The next highest single county total was in Jefferson, where tourists spent $1.35 billion, according to state reports.

Baldwin County also had almost a quarter of the total number of employees working in travel-related industries statewide. The 39,333 Baldwin County workers in travel-related employment was 24 percent of the 162,688 around the state.