Climbing Pump Prices Has Tourist Businesses Fearful of Decline in Summer Travel

Analysts are predicting gasoline prices will top $4 a gallon soon and stay that way throughout the summer months.

March 14, 2011

SARATOGA SPRINGS, N.Y. -- The cost of gasoline does not appear to be heading downward anytime soon, and with the summer travel season just over two months away, many businesses that depend on tourists are concerned that will negatively impact summer travel plans, the Times-Union reports.

Upstate tourist destinations like Lake George and Saratoga Springs are remembering the dismal summer of 2008, when area gasoline prices reached $4.21 a gallon and tourism businesses tanked.

Hany Shawky, a University of Albany finance professor, said soaring energy prices will hurt the country??s recession recovery. He also thinks that gasoline will reach $4 per gallon. "It could last the entire summer," said Shawky.

Jeff Lenard, NACS spokesman, said the increase has already impacted consumer behavior, with convenience stores registering declines in demand as drivers park their vehicles more. Also hurting retailers is the fact that more motorists are using credit cards to fill up, which adds to the station??s overall operating costs.

"Concern over the cost of gasoline rose for the fifth consecutive month," said Douglas Lonnstrom, who founded the Siena Research Institute.

While some New York tourist spots remain optimistic, the owner of the Golden Arrow Resort in Lake Placid has another incentive up her sleeve. In 2008, the hotel offset the cost of visitor??s gasoline. "We??ve definitely talked about doing that again," said Jennifer Holdereid.

Advertisement
Advertisement
Advertisement