Slowing economy hits local tourism
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| Local hotel owners say customers aren't spending as much money at their businesses this year. They've also noticed visitors shortening their stay. (CAROLINE DAVIS/ Rockbridge Report) |
As the national economy continues its downward spiral, local Lexington restaurants and inns will rely on tourists and cutting costs to sustain their businesses.
“A lot of people are getting their heads chopped off by this economy,” said Ugo Benincasa, owner of the Sheridan Livery Inn and Restaurant. “I’ve been 30 years in the business and I’ve never seen it like this.”
A June report issued by the Rockbridge Regional Tourism Board revealed a weakening pace of excise tax revenues for the past year, indicating a slowing of tourism in the area.
Last month, the Rockbridge Advocate published tourism figures showing that 4,835 people signed the guestbook at the Lexington Visitor Center in June – a decline of 146 from the previous June’s figure of 4,981. But the decline in numbers is just part of the story.
“I think it’s the overall economy and people just cutting back,” said Rockbridge County Commissioner of the Revenue David C. Whitesell.
Benincasa has witnessed that firsthand.
“People just aren’t spending as much out as they used to two or three years ago,” he said. “There still is tourism from the closest areas, but before, people would stay a few nights. Now they’ll do maybe one-night stays in Lexington.”
The Sheridan Livery has maintained a relatively steady number of patrons.
At the Hampton Inn Col Alto, reports are similar. The inn has observed its first year without growth since its opening in 1997, said General Director George Moore.
Benincasa said the decline of the market has hit the Sheridan Livery Restaurant especially hard.
High food production costs have been a major factor in local restaurants’ profit decline. Benincasa said the Sheridan has seen a 30 percent increase in its food costs over the past couple of years.
Other restaurants and inns in the area have upped the prices of their restaurant meals or hotel rooms to counter their rising costs. Moore said the Hampton Inn has increased its room prices over the past few years – and many other area hotels have followed suit.
But at Benincasa’s restaurant, prices remain relatively untouched. Instead, Benincasa has taken a creative approach to saving money.
“You have to use your imagination a little more than you used to,” he said.
Benincasa said the restaurant now incorporates less expensive ingredients, but without sacrificing the value of the meal.
“To survive, [the kitchen staff is] doing more work-intensive food these days,” he said.
And the Sheridan isn’t the only restaurant in town with a few tricks up its sleeve.
Lexington’s newest arrival, the Red Hen restaurant, opened Sept. 11, and owner John Blackburn already has ideas for tackling the area’s economic woes.
“Tourism is probably the best card we have in our hand right now,” said Blackburn. “And we need to be a little more effective in playing that card.”
Blackburn said he hopes to advertise in the surrounding area to catch travelers heading to the Homestead and the Greenbrier.
“I think we can have a really prosperous, bright future in Lexington in terms of our economy,” said Blackburn, “but only if we get out there and go after it and not be quite so complacent.”
Like Benincasa, Blackburn has found his own solution to cutting food costs: using local produce and ingredients.
“[The cost] of that nationally distributed, trucked-in food is going to continue to rise …. Hopefully ours will stay about where it is because we’re not transporting [food] more than 20 miles to our restaurant.”
Blackburn said a community effort is crucial to warding off future economic troubles.
“[T]he more businesses that there are that really cater to visitors … the better off all downtown merchants will be,” said Blackburn.
In the meantime, local business owners will be hoping for an economic turnaround.
“I don’t know what changes there will be in the future,” said Benincasa. “But we’re going to ride this out hoping that things are going to get better.”
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