Summer ’06 goes down as ‘challenging’
by Joseph SantangeloThe summer of 2006 proved to be a continuing chapter in the uneven and volatile world of tourism on Cape Cod. One official described the season as “lumpy” – not uniformly good or bad, but one where some businesses did better and others not quite as well as last year.
Despite an aggressive television ad campaign, reservations at the Cape Cod’s five Red Jacket resorts were consistently down about 4 percent. Even with an intensive Internet presence, business at the waterfront Anchor-In Cape Cod Hotel in Hyannis was about on par with last year. Along Route 28, significant numbers of “Vacancy” signs stood out even during peak summer weeks.
Restaurateurs and retailers noted some softness in sales as consumers had to reach deeper into their pockets to gas up the family vehicles. With hotel occupancy virtually flat, chambers of commerce and businesses had to work harder to pull visitors out of summer rental cottages or second homes where they were staying with family and friends. Cottage rentals generally were in line with last year, though larger extended families often vacationed together.
In the face of record energy costs, higher interest rates and slumping home values, consumer confidence proved generally resilient and vacationers flocked to many Cape attractions. Overall, Cape tourism still produces an estimated $1 billion annually, or more than 20 percent of the countywide economy.
Attendance was up sharply at the JFK Hyannis Museum on Main Street run by the local chamber of commerce. Visitors to the Cape Cod National Seashore operated by the National Park Service were up 22 percent, after years of steadily declining numbers.
Even within the Seashore property, results were mixed. Increasingly, beachgoers headed to the southern area at Eastham, with fewer going to the more distant northern end near Provincetown.
The Steamship Authority reported passenger travel between the Cape and Islands about the same as last year, though June was down due to rainy weather.
Skip Simpson, co-owner of the Anchor-In in Hyannis with wife Lisa, said the Cape bore some of the brunt of bad publicity from record spring rainfall, floods and ruptured dams that blanketed the airwaves. “People didn’t realize the Cape was not impacted by that. So we got painted with a broad brush at kind of a crucial time period when people were making travel decisions.”
Even through Memorial Day and Independence Day weekend traffic started strong, he cautioned, “When you see heavy traffic during holiday periods, that’s not an accurate gauge. People coming over the bridge were certainly a yardstick, but you temper that yardstick with people coming to second homes or staying with friends.”
He noted, “Clearly, the demographics of the Cape have changed, so that it is much more year-round and more people are living in second homes. They’re coming here, there are multiple families staying in second homes, but not necessarily staying in hotel rooms.”
His assessment: “Clearly the summer of ’06 was a challenging summer for some, perhaps more so than last summer. And last summer was a challenge.”
There is no doubt that numbers of the desirable traditional tourists who rent hotel or motel rooms have plateaued. They tend to go out to restaurants more frequently than people staying in private homes and spend more at shops and attractions. Their numbers appear to have peaked about 2001, based on amounts of hotel-motel tax collections.
Since then, many former tourists have become home-, condo or timeshare owners. They may rent to tenants during part of the year and entertain guests at other times. They are less likely to eat out, go antiquing or visit tourist attractions such as the National Seashore.
Monica Parker, executive director of the Hyannis area chamber, characterized the season this way: “It’s a bit lumpy. I know several hotels are seeing full or nearly full capacity. When they are sold out, they are referring people to another location. So I know there is a trickle-down effect. Others are not seeing as much business.”
The deciding factor could be location, pool availability, room rate or frequent traveler points offered. Anecdotal information is that travelers stayed closer to home this summer, which benefited the Cape. In-bound international travel, particularly from Canada, received a boost from the weak U.S. dollar.
“Tourism is in a transition in how people make travel plans and how people are attracted to travel,” Parker said. An Internet presence is key to booking younger families, while older travelers are often connected to tour groups – a growing business for the Hyannis area. Late summer and early fall bus tours are up more than 25 percent. Each tour group staying overnight could generate as much as $10,000 in Cape business.
Like other areas, the Hyannis chamber and local merchants are working harder to attract visitors with coupons, promotions and special events, such as free concerts, movies on the green, car shows, parades, music strolls, farmer’s markets and once-a-month Artscape Thursdays along Main Street.
“The entirety of the Cape would be well served to focus on the interests of all travelers, not just people looking for the beach and a barbeque,” said Parker. Some lodging establishments also offer eco-tours that bring in visitors with an interest in the Cape’s unique environment.
Across the Cape, members of the countywide Cape Cod Chamber of Commerce reported a busy but basically flat summer season compared with last year. CEO Wendy K. Northcross said, “Good weather on our long holiday weekends has been a big plus for us. We think that there are a lot more day trippers based on the visitor center reports from folks stopping there. And there is always a majority of guests that are here visiting friends and relatives. So they are spending, but not all in hotels or other accommodations. I do believe that the higher energy prices, mortgage rates and other concerns are weighing on consumers, and that will be more evident when we tally up the season. Our phones and web hits are very strong, however, so the interest to travel seems high. ”
Paul McBride, executive vice president of the Red Jacket Resorts, which advertised heavily during New England Cable News weather reports, summed up the summer of ’06: “The season has drifted through at moderate pace. I do not see anything changing in the coming weeks. I think it is going to shape up as a modest season on the Cape.”
Joseph Santangelo Joseph Santangelo has been a statehouse bureau chief, a corporate executive and currently works for the Connecticut Legislature. 
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