Region's tourism industry may be hampered by gas prices, shaky economy

By Rebecca Barrett

For the Gazette-Times

Mid-valley summers are notoriously sunny, the kind of weather that attracts thousands of visitors for festivals, outdoor activities and family fun.

But thunderheads could be lurking on the horizon for local tourism. Experts are forecasting a storm - high gas prices and uncertainty in consumer confidence - that could spell gloom for local businesses that depend on tourism.

"Travel is going to be down this year," said Jimmie Lucht, executive director of the Albany Visitors Association, and president of the Willamette Valley Visitors Association.

However, there could be a few breaks between clouds, including a boost for the hospitality industry with the Olympic trials in Eugene starting later this month, and more foreign travelers, thanks in part to a weak U.S. dollar. With the price for gas around $4 a gallon, families may forgo out-of-state vacations, so there could be an increase in regional travelers to Linn and Benton counties.

At $7 billion annually, tourism is Oregon's third-largest industry, according to Travel Oregon, the state's tourism commission. That includes 4.1 million visitors annually to the Willamette Valley region.

"Folks are beginning to realize that it's a big industry," Lucht said.

For businesses and government, tourism is an economic staple, with local lodging taxes used to pay for public services, and visitors providing a customer base for restaurants, hotels, even service stations, which in turn provide local jobs.

Marketing the mid-valley

There's a lot to market the mid-valley as a tourist destination, from Albany's 700 historic homes to birdwatching in Benton County. The Willamette Valley has also branded itself "Oregon's Wine Country."

Developing these specialty niches to attract visitors is one of the ways the tourism industry has evolved, said John Hope-Johnstone, executive director of Corvallis Tourism. Three years ago, Corvallis Tourism expanded what Hope-Johnstone calls "tailored lifestyle marketing," including culinary, bicycling and birding. So when someone requests information, he not only gets the visitor's guide, but also information for his particular interest or hobby.

With birding, for example, Corvallis Tourism has purchased the unique URL, Oregonbirding.org, and advertises in Audubon magazine. Corvallis Tourism puts people in contact with the local Audubon chapter, and promotes Corvallis as a tourist destination for its close proximity to Finley, Ankeny and Baskett Slough national wildlife refuges and the E.E. Wilson Wildlife Area.

Hope-Johnstone agrees with the assessment that 2008 will be a flat or slow-growth year for tourism. Corvallis is a "drive market" and the effects of high gas prices are already evident.

"We're seeing that in a slight reduction of visitors coming to the visitor's center," he said.

Multimillion-dollar payoff

Visitors to Corvallis leave behind $79 million annually, according to Corvallis Tourism's most recent annual report.

Additionally, Corvallis' 9 percent room occupancy tax generates about $1 million per year, according to city budget figures, with half that money used for economic development, including $300,000 to pay for Corvallis Tourism's operations. The other half is spent to support services that visitors and locals enjoy, including libraries, parks, transit, and police and fire services.

Corporate travel in Corvallis accounts for about 37 percent of lodging occupancy, slightly less than leisure travel, which accounts for 39 percent of lodging occupancy, followed by business travel at 15 percent, which includes athletic events, conferences, social and cultural visitors.

As home of Oregon State University and with a healthy mix of businesses, Corvallis has a higher number of corporate travelers than other cities with 55,000 people, and that's a good thing during an economic downturn, Hope-Johnstone said.

"It helps us through some of the tough times," he said.

Rebecca Barrett works in the marketing and public-relations department of The Corvallis Clinic. She is a frequent contributor to Mid-Valley InBusiness; see its next issue June 6.