Travel and tourism in California are showing surprising strength this summer, proving to be a reliable economic engine that is helping to keep the cooling economy from stalling.
Despite worries that this would be the stay-home summer of the decade, state officials now expect vacation travel this season to increase slightly from last year's brisk pace. The market is being bolstered by great travel bargains and extra cash that consumers have from home refinancing and tax rebates, plus an unwavering attitude that nothing should get in the way of the family vacation.
Apart from the resilient housing market, tourism "is really the only positive thing we see going on right now," said economist Steve Cochrane, who follows California's economy for Economy.com, a national research firm. "Households are still willing to spend money on things they want, and that attitude is saving the tourism industry."
The state's $75-billion industry, which supports jobs for more than 1 million Californians, can thank folks such as Pat and Candice Bartley.
The Stockton couple, both 44, traveled to Laguna Beach this week, none too worried about the $194 oceanfront room rate at Vacation Village. They splurged on room service, Jet Ski rentals for their two teenage boys and massages at a nearby day spa. A round of golf was also on the agenda.
"It isn't that we're loaded or anything," said Pat Bartley, a mechanic, as he sipped coffee on the hotel's beachfront patio Wednesday morning. "But we work hard all year, and this is our summer vacation. We're going to enjoy it, by gosh."
"That little tax rebate helped a lot too," added Candice Bartley, a stay-at-home mom who teaches scrapbooking classes. She spent half the rebate, about $300, on an "impulse purchase" of a watercolor print.
Consumer spending has been a solid, if puzzling, cushion to the nation's shaky economy, and that is clearly evident in California's huge tourism industry. Although corporate travel is down and some hotels and amusement parks are struggling, many businesses that cater to tourists have been pleasantly surprised by the flow of visitors.
John Stoddard, general manager of the Wilshire Grand Hotel, said this is turning into the best vacation season in four years at the 900-room property in downtown Los Angeles--an increase he attributes to steady convention traffic, regular international visitors and consistent family spending habits.
