After a Turbulent Year, Revelers Toast to Happier Days Ahead

It's freezing. Consumer confidence is at an all-time low, and housing prices just took another dive. It was a year that seemed, for many, much more Eeyore than Pooh.

Yet, despite the doom and gloom, people from the Washington region still found reasons to celebrate New Year's Eve. And despite tales of woes in the retail sector, restaurants and some hotels across the region reported that bookings were even or up slightly from 2007.

"People are going to celebrate, even if they downgrade the celebration," said Lynne Breaux, president of the Restaurant Association of Metropolitan Washington. "Maybe they don't drink the finest champagne, but then again, maybe they do, because it's a once-a-year celebration.''

Last night in Old Town Alexandria, revelers poured into the elegant teal lobby of the Hotel Monaco and gathered beside a crackle-free gas fire to consider what lies ahead. A man tied a purple and pink balloon butterfly as the crowd waited for a First Night magic show.

Lou Carter, a retired Navy equipment operator visiting from Gloucester, Va., took in the festive scene in the packed hotel and expressed some optimism.

"It's going to be a good year," Carter said. "I think the economy's going to turn around. It can't go further down. It has to go back up."

In Alexandria, online sales for the city's relatively inexpensive First Night ceremony -- $20 per ticket, $12 if bought before Christmas -- tripled over the previous year, spokeswoman Katrina Lucas said. "I think part of that is because we are a very budget-friendly way to celebrate New Year's Eve," she said. "The economy is playing into our favor that way."

The weather was not as friendly: High winds prompted Alexandria and Annapolis to cancel fireworks displays. And many of those who turned out were bundled up against temperatures that dropped below freezing.

In Bethesda, David Fishback and his wife, Barbara, stuck with their traditional New Year's Eve routine: catching a movie (this year's choice was "Frost/Nixon") before joining friends for dinner at La Panetteria, an Italian restaurant they like.

Some restaurants, mindful of the economy, adjusted their offerings for the passing of 2008. For example, Arlington County's Tallula replaced the four-course, $80-per-person prix fixe offering from the previous year with a three-course prix fixe for $50 per person.

For some people, it was a night to splurge. Tickets to the swank 12th annual Downtown Countdown New Year's Eve gala at the Grand Hyatt were sold out, as were tickets to the Rock and Roll Hotel's bash in Northeast Washington.

Still, many who had donned tuxedos and New Year's tiaras at the Hyatt said they were more price-conscious about their party plans because of the economy.