Tourist businesses plan to 'hang in there'

The 2008 tourist season was not a banner year across Montana, according to a survey of tourist businesses, and two-thirds of them expect either a level year or a down year in 2009.

The University of Montana’s Institute of Tourism and Recreation Research recently released the results of its Web-based survey conducted Nov. 5-11. A total of 314 Montana businesses responded, representing accommodations, attractions, tour and guide operations, tourism and event planners, and tourism promoters.

The response from attractions, ski areas and museums was too small to make generalizations, authors Norma Nickerson, Melissa Bruns-Dubois and Kara Grau said.

Statewide, 45 percent of businesses reported an increase in visitation in 2008, 37 percent saw a decline and 18 percent said business was about the same as in 2007.

Those reporting an increase cited repeat visitors, affordability and better marketing as the primary reasons. Higher gas prices was cited as a factor by 86 percent of those reporting a decline in business, followed closely by the poor state of the national economy. Fewer leisure travelers was also cited for a decline in business.

About 71 percent of tourist businesses statewide say they have no plans to expand, change or sell their business next year.

“Many simply indicated they would ‘hang in there,’” the report states.

A little more than a third of tourist businesses statewide expect visitation next year to remain the same as this year. One-third believe it will increase and 28 percent expect visitation will decline.

Businesses expecting positive numbers next year cited gradual increases in visitation year after year, as well as repeat business and affordability. Ninety-five percent of businesses expecting a decline next year cited the U.S. economy as a factor.

“This is verified by 51 percent of businesses who say their bookings are down for 2009,” the report states.

In the open-ended section of the survey, many business owners indicated guests this year were “bargain shopping or not spending at all” or “were partaking in ‘free’ activities or doing the activity on their own,” the report states.

Looking forward, many business owners said they hoped to cut costs where possible, especially in energy consumption, and they plan to keep their rates the same as in 2008. They also indicated they want to continue a strong marketing program to “sway people to Montana rather than elsewhere” and not to expand international marketing.

Ninety-five tourist businesses in the Glacier Country region, which includes the Flathead and areas surrounding Glacier National Park, responded to the survey. About 71 percent of them provide accommodations.

Results for the region mostly mirrored the statewide results. One noticeable difference is that lack of forest fires in 2008 was cited by 44 percent of regional respondents as a reason for increased visitation, compared with 29 percent statewide..

Looking to the future, regional respondents indicated they want to “market regionally to overcome travel cost concerns of tourists” and “highlight ‘not so common’ or ‘different’ attractions and activities to encourage repeat visitors.”

For more information, visit online at www.itrr.umt.edu.