Fewer Tickets to Ride

As Gas Prices Rise, Tourists and Companies Cut Back

The Spirit of Washington dinner boat packs powerful twin diesel engines that carry 600 people on sightseeing voyages along the Potomac. Two eight-cylinder generators keep the neon lights glowing at the onboard bar. The bow thruster helps it push away from the dock.

Fueling them all are 7,000 gallons of diesel that have shot up in price by about 40 percent over the past year. Add four other boats with a total of 20 engines among them, and it's one big financial headache for Sal Naso. He's worried.

"We've absorbed most of the cost," said Naso, vice president and general manager of Entertainment Cruises, which owns the boats, "but if it keeps going up, we're going to have to pass it on."

The spike in fuel prices is hitting the Washington region's tourism industry during the heart of the high season, pummeling vacationers and the companies that cater to them. Official numbers won't be available for months, but warning signs have been spotted.

Some travelers are cutting their trips short and have less money to spend. Tour bus operators and sightseeing boats struggle to maintain prices even as their costs increase. One rental car company is offering free gas to keep people driving as the specter of $4-a-gallon fuel begins to reshape the way we spend our time off.

"We are starting to see some fundamental changes in consumer driving behaviors," said David Portalatin, director of auto industry analysis at NPD. According to an April survey by the research firm, 8 percent of consumers plan to vacation closer to home, and 12 percent have canceled trips altogether.

The trouble began around Memorial Day, said Lon Anderson, director of public affairs for AAA. Several measures indicated tourism was declining.

In Ocean City, AAA reported, the "flush count" -- an estimate of the number of visitors based on water use -- was down 13 percent from the previous year. Holiday traffic across the Chesapeake Bay Bridge dipped 3 percent, the first significant decline since 2002. Traffic on Virginia highways was down 4 percent. MasterCard gasoline purchases were down 5 percent in the Washington area.

And the road isn't always easy for those who do drive: AAA has seen a 15 percent increase in calls for help from motorists who have run out of gas as they test the limits of their fuel tanks.

Washington's tourism bureau is trying to preempt a big drop in visitors with a new $2 million marketing campaign dubbed "Staying Power" that touts the capital's free attractions (jazz at the Corcoran, anyone?) and public transportation. Destination DC President Bill Hanbury said anecdotal accounts from local companies show that tourism is about even with last year.

About 2.3 million leisure travelers visit the city between June and August, according to the organization. Their dollars are particularly important during these slow, sweaty months when Congress is out of session and business travel grinds to a halt. More than 90 percent of leisure travelers arrive by car; nearly 60 percent stay overnight.

"We are a drive market," Hanbury said. "You're not even taking a full tank of gas to get to us, and I think that's going to be our advantage."