Central Mass. Tourism Industry Keeps Watch On 2013 Economy
While some tourism-related businesses gradually improve from the tumble they took during the recession, others say they weren't as negatively affected by the economic downturn, as people sought entertainment and recreation closer to home.
Either way, they're expecting a relatively flat year compared to 2012, with little improvement, seemingly reflective of consumer confidence bouncing back and forth in recent months.
“Last year was a pretty good year compared to the year before,” said Rick Skinner, general manager at Best Western Royal Plaza Hotel & Trade Center in Marlborough. “Still not to pre-2009 levels, however we did show an increase from the previous year. I would say we're probably going to be at about the same level.”
Paul J. Sacco, president and CEO of the Massachusetts Lodging Association, said his members are expecting a slight increase in occupancy from 1 to 1.5 percent this year and modest rate increases.
Occupancy in Massachusetts ticked up from 65.7 percent in 2011 to 61.6 last year, Sacco said.
Similarly, Middlesex County's occupancy rates were up from 69.1 percent to 69.7 percent. However, Worcester County's dipped from 61.2 percent to 59.5 percent last year, according to Sacco. (Data from STR Global pegged occupancy in Worcester County hotels last year at 61.3 percent, but only from January through September.)
That decline isn't necessarily cause for concern though. Sacco said it could have come from just a few less meetings in the county or one less major event.
He said that while occupancy continues to increase nationally and within the region across all types of lodging, including large hotels, discount hotels and bed-and-breakfast establishments, it's still below 2007 levels.
Economic Uncertainty A Factor
Skinner said there's still uncertainty about how federal and state budgets will pan out this year, which he thinks is holding numbers down as businesses and consumers remain wary of the economy. While most of the Royal Plaza Hotel's guests are leisure travelers, Skinner said the facility hosts hundreds of events per year, and event sizes have dropped.
“I think a lot of it has to do with unemployment,” he said. “When organizations and associations lay off people, there's less people coming to these events. As you see employment levels increase, you'll start seeing higher participation.”
He expects the number of events hosted at the site to be on par with last year.
And while the Royal Plaza Hotel employed 189 people at its peak around 2007, that number dipped about 20 percent around the time of the recession. Skinner said about 155 work at the hotel now; he expects about the same level this year.
More Hopeful At Tourist Sites
Things are more optimistic for local tourism destinations like Old Sturbridge Village and Tower Hill Botanic Garden in Boylston.
Michael Arnum, director of marketing at Tower Hill, said the last two years have yielded the best attendance in the gardens' history, topping 80,000 visitors. More are expected this year.
“The trends that we've seen in the past are continuing,” he said, explaining the increased attendance. “People are gardening more, particularly food gardening and that's partly because of the economy.” And, he added, “More and more people are doing 'staycations,'” or vacationing at home. “They're discovering all the great resources they have around them.”
Tower Hill has also added offerings in recent years, including the opening of a winter garden, helping boost memberships and traffic. It recently began working with a marketing agency to help increase visibility and has collaborations like the Three Museums partnership, which encourages guests to visit the Museum of Russian Icons in Clinton, Fruitlands Museum in Harvard and Tower Hill in the same day.
Despite the growth in attendance, Arnum said the garden will likely maintain its staffing level of about 30 this year.
“I think we want to focus on raising the revenues first before we do any more hiring,” he said.
In Sturbridge, hiring is up, as living history museum Old Sturbridge Village reopens 30 lodging units and the historic Oliver Wight House, which have been closed since 2005.
Ann Lindblad, vice president of marketing and communications, said after dips in attendance under a previous administration, numbers have been improving the past five years. Reopening of the lodges is made possible by about $1 million in donations.
Lindblad said the lodges are popular for wedding parties, antique lovers who have traveled to the Brimfield Flea Market and visiting scholars.
She said the village is in the process of hiring about 20 part-and-full-time staffers, and adding another six to 12 seasonal interpreters and museum teachers is possible.
Part of what's helped the village increase visitors has been new attractions and events like its Candlelight Christmas. It's also done a series of community days to reintroduce the village to residents of area communities.
“We do attract visitors from all over the country,” Lindblad said. “And probably 8 percent of our visitors are international. But we have a hunch that you might live 20 miles away but haven't visited since (you) were in fifth grade.”
And she believes these factors will help the museum through the year.
“We will be on par with last year if not on the upward side of things,” she said. “We're very optimistic.”
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