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Drive-in Tourists Boost Numbers; Disney Bang Fades

Disneyland’s 50th anniversary celebration keyed big gains in Orange County tourism last summer.

While the festivities continue through September, the frenzy is winding down. That’s slowed OC tourism growth a bit, particularly in the theme park district around Anaheim.

The county is expecting a 2% gain to 45.4 million visitors this year. Washington, D.C.-based Travel Industry Association forecasts an overall 5% increase in U.S. travel this year.

“We expected softening this year,” said Bruce Baltin, senior vice president of PKF Consulting in Los Angeles.

Baltin said the Disney anniversary tourist bump in 2005 was similar to the bump in 1996, when Disneyland staged the Main Street Electrical Parade farewell. Disney saw attendance rise by about 20% in the fourth quarter last year.

But the gains are slowing.

OC hotel occupancy was up just 1.2% as of May this year, though the average daily rate rose 10.3% to $135.80 in OC.

Occupancy in Anaheim fell to 78% in June, versus 83% a year ago, according to preliminary data from PKF Consulting. Still, that beat the national occupancy rate of 66.8% in June, according to Hendersonville, Tenn.-based Smith Travel Research.

“It’s a very healthy summer,” Baltin said. “Last year was very high and you can’t sustain that forever.”

Drive-in tourists from the region are helping offset declines in air travel. John Wayne Airport passenger traffic is off 0.4% this year through June, with Los Angeles International Airport recording a 0.5% drop.






Montage Resort: seeing longer average stays

Disneyland Resort hotels are posting occupancy of more than 90%, though other hoteliers are reporting weaker results.

Bill O’Connell, who runs four Stovall’s hotels along with the recently opened Doubletree Guest Suites in Anaheim, said July and August occupancy looks to be down 3% to 4% from last year. But with higher room rates, the hotels still will post strong results, he said.

Others said last year’s performance led some hotels to boost their rates too high. And there’s more competition from two hotels that have opened in Anaheim since March.

“Last year was even better than 2000, so expectations were very high for this year,” said Pattie Davidson, managing director of the Buena Park Convention & Visitors Office. “Soft from last year is still a good year,” she said.

Provided last week’s elevated terrorism warning doesn’t have a huge effect on travel, observers see solid times ahead.

Occupancy might dip 2% this year at the Howard Johnson Hotel near Disneyland, said William Simpson, the hotel’s director of sales.

“That’s probably still 5% higher than in 2000,” he said.

High gas prices appear to be keeping travelers closer to home. That’s a good sign for OC, which has about 21 million people within a day’s drive of the area.

AAA has reported an increase in calls from Californians wanting to plan road trips, and hoteliers said they’re fielding a lot of last-minute bookings.

“We’ve sold as many as 15% to 20% of our rooms within a week of the visits,” O’Connell said.

The heat wave has been a boon for water parks and shopping malls.

Knott’s Berry Farm’s Soak City attendance was up 15% during the first two weeks of July, compared to the same period a year ago. Wild Rivers in Irvine reported attendance was up by about 20%.

“The water park may take (some attendance) away from the theme park this year,” said Jennifer Blazey, senior public relations specialist for Knott’s.

South Coast Plaza in Costa Mesa has seen an influx of international visitors,particularly from Asia and the Middle East,and retailers are reporting a busy season.

“Traffic counts are up, especially on weekends,” said Werner Escher, executive director of domestic and international markets for South Coast Plaza.

While hot weather may drive some business to the center, Escher said they’re not just coming for the air conditioning.

“We see people carrying shopping bags, so they’re not just coming to cool off,” he said.

Coastal resorts are having a big summer.

St. Regis Monarch Beach Resort & Spa in Dana Point is having its busiest summer since it opened in 2001.

“We’re 97% to 100% full on weekends,” said Kristi Turek, director of public relations.

Guests at the Montage Resort & Spa typically are staying three to four nights instead of two, said Jeff Johnson, director of marketing at the Laguna Beach hotel.

Restaurants in Newport Beach generally are busy, though there’s some evidence spending may be down.

“People might order a glass of wine instead of a bottle,” said Gary Sherwin, chief executive of the Newport Beach Conference & Visitors Bureau.

Newport Beach has seen some softening in overall tourist business, but Sherwin said a major overhaul of the city’s high-end hotels during the past year likely will turn that around once visitors become familiar with the changes.

Huntington Beach got a big boost from its annual U.S. Open of surfing in July. The event attracted roughly 250,000 people.

Laguna Beach is riding the popularity generated by the MTV show, “Laguna Beach: The Real Orange County,” with the majority of businesses seeing an increase in volume this year.

Stores geared to youths are doing particularly well, said Judith Bijlani, executive director of the Laguna Beach Visitor & Conference Bureau.

She said more families are stopping by the bureau to ask about filming locations from the show.

Next year, PowWow,the largest convention of travel trade buyers in the U.S.,will descend on Anaheim in April. Cities that host PowWow typically get a sizable bump in future bookings.

“PowWow will reframe the destination in the minds of consumer marketers,” said Buena Park’s Davidson.

Add in new developments at GardenWalk and the Platinum Triangle in Anaheim and the Henry & Ren & #233;e Segerstrom Hall at the Orange County Performing Arts Center in Costa Mesa, and the tourism industry could be poised for a run of prosperity for several years.


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Comparing Apples and Oranges

Travel patterns have shifted in recent years, making annual comparisons more difficult.

Summer, traditionally a family vacation time, has lost some of its sheen amid school schedules that now go year-round or start in August.

Spring break can span a six-week period around Easter.

Meanwhile, 61% of parents are willing to take their kids out of school for a vacation, according to a survey by Orlando marketing firm Yesawich, Pepperdine, Brown & Russell.

“Our previous peak months are melting away and the shoulder seasons (spring and fall) are building up,” said William Simpson, director of sales at Howard Johnson Hotel, across the street from Disneyland.

That’s a far cry from the early 1970s, when Disneyland and some hotels weren’t even open past September. It was 1985 before Disneyland was open seven days a week all year.

International travelers from Australia and New Zealand now give a boost to the market in fall during their spring vacation.

“Spring is becoming the new summer,” Simpson said.

,Sandi Cain

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