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BusinessJune 30, 2008

Rumors of a recession are bad news for some businesses, but don't tell that to Debra Martin, owner of Patricia Ann's in Cape Girardeau. Compared to this time a year ago, sales are up five percent. The number of area residents browsing her collection of gifts such as candles, coffees, Missouri wines, and bath and body products also has increased. Lately, Martin has noticed more customers from St. Louis, Kansas City, Southern Illinois and the Cape Girardeau area...

KIT DOYLE ~ kdoyle@semissourian.com
Elsie Bone, left, and Doris Greggs looked through items Thursday in the trading post section of the Red House Interpretive Center in downtown Cape Girardeau. Greggs was visiting the area from Nevada, while Bone was up from Charleston, Mo.
KIT DOYLE ~ kdoyle@semissourian.com Elsie Bone, left, and Doris Greggs looked through items Thursday in the trading post section of the Red House Interpretive Center in downtown Cape Girardeau. Greggs was visiting the area from Nevada, while Bone was up from Charleston, Mo.

Rumors of a recession are bad news for some businesses, but don't tell that to Debra Martin, owner of Patricia Ann's in Cape Girardeau.

Compared to this time a year ago, sales are up five percent. The number of area residents browsing her collection of gifts such as candles, coffees, Missouri wines, and bath and body products also has increased. Lately, Martin has noticed more customers from St. Louis, Kansas City, Southern Illinois and the Cape Girardeau area.

And she believes the trend is here to stay.

"This is the kind of trip you can do in one day," Martin said. "People can shop with us for a little while and, if they wish, drive back to where they came from that evening. It will be interesting to see how many locals we'll have as the summer months continue."

With the increasing price of gas, more Americans are choosing to remain closer to home this summer, a phenomenon sometimes referred to as "staycationing."

A May Gallup Poll found that 36 percent of Americans changed vacation plans because of gas prices. Better Homes and Gardens magazine's May study revealed that 80 percent of respondents prefer spending more vacation time closer to home this summer, including 52 percent who plan to spend more vacation time at home than in previous years.

And that's good news for area merchants.

Economic regional growth has slowed from 6 percent in May 2007 to about 4 percent now, according to data from the Bureau of Labor. That extra income can only help business owners who are hoping to cash in on local residents' summer plans, said John Mehner, president and chief executive officer of the Cape Girardeau Area Chamber of Commerce.

"Certain sectors remain strong, including the hotel/motel and restaurants receipts which are up for the city," Mehner said. "The local economy is definitely cautious right now with some up and some down."

Marla Mills, executive direc- tor of Old Town Cape, said the downtown area offers visitors a wide variety of antique stores and restaurants. And that, Mills said, is a win-lose situation for the businesses.

"Though we have all of these wonderful shops and eating places that present options for those vacationing closer to home, it also is a double-edged sword," Mills said. "As we know, some of our unique stores in the downtown area are some of the first things out for consumers who are watching every penny they spend."

Mills added that while higher gas prices have played a part in people choosing a close vacation spot, local consumers also are uncertain about the economy's future.

"In turn, they are being more conservative about the choices they make for their summer plans," Mills said. "And with the busy lives Americans have, they are even cutting back from a weeklong trip to just a weekend excursion."

One such resident who has chosen that option is Kent Angle, who was antique shopping in downtown Cape Girardeau last Friday morning. This summer Angle and his family from Burfordville, Mo., are opting for vacations at more local places, such as Cape Girardeau and fishing trips on nearby lakes.

"Instead of going far away, we chose to make the 30 minute-drive here," said Angle, who had just left Dockside Furniture and Antiques at 5 N. Main St. "The gas prices have played a major part in our decisions, but we'll still enjoy our time wherever we go."

Options close to home

At Elite Travel and Cruise in Cape Girardeau, sales have yet to slow down, according to travel consultant Carolyn Kempf. She said instead of canceling vacations, travelers are spending a shorter amount of time at their respective destinations.

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The travel agency's most popular vacation spots inside Missouri include Branson and St. Louis and out-of-state trips via Amtrak from Carbondale, Ill., to either Chicago or New Orleans.

"Branson offers a nightlife and options for families with kids, debunking the stereotype that the town is just for senior citizens," Kempf said. "St. Louis is an obvious choice because of the close proximity and the entertainment options like Six Flags and the Cardinals. And the train has proved a popular out-of-state method of travel for families with kids because the children either ride free or receive a hefty discount."

She families are taking shorter trips because of a combination of factors.

"We're in an election year and at war," she said. "Plus, we have gas prices that are costing the American family a hefty price in fuel, and they're readjusting their schedules as a result. While people are enjoying trips to places outside of Missouri, we do have those who are taking advantage of special deals here in Cape Girardeau and beyond."

Lori Simms, communications director for the Missouri Department of Tourism, said that last year the state's residents comprised 17.6 percent of the its tourism industry. She expects the trend to stay the same at a minimum, especially with an increasing number of Americans taking vacations closer to their community.

"If the economy is any indication, people will stay closer to home, whether it's their own town or a city in another part of the state," Simms said. "One surprising trend we may see this summer is an increase of visitors from neighboring states. Missouri is so well-situated geographically that people from as many as eight states will pay our communities a visit in 2008."

Adjusting in Cape

The Cape Girardeau Convention and Visitors Bureau reported that some Missouri residents have said they have decided to vacation in the state this summer. The CVB is capitalizing on the situation by sponsoring an extension of four area attractions' times and days of operation.

Through a grant provided by the Cape Girardeau Convention and Visitors Bureau, the attractions are remaining open later through Sept. 15. The Red House Interpretive Center, Old St. Vincent's Church, the Glenn House and the Cape River Heritage Museum are open from 10 a.m. to 4 p.m. Tuesday through Saturday and from 1 to 4 p.m. Sunday. The four attractions are closed Mondays. They had been open from one to two days per week beforehand.

"Given [that] gas prices [are] nothing short of outrageous, we're looking at more people choosing to vacation much closer to home," said Chuck Martin, executive director of the Cape Girardeau Convention and Visitors Bureau. "We wanted to take full advantage of that and wanted those attractions to stay open past the weekend. By expanding the hours, we are having uniform hours for the four attractions."

The grant is funded by a hotel and restaurant tax. Next year the CVB will provide 75 percent of the funding and not-for-profits may provide the other 25 percent.

Jones is hoping that expanding the hours and days of operation will entice the area's visitors to extend their stay from a one-day trip into a multiday excursion.

"When you look at all of the attractions within an hour or two drive from here, Cape Girardeau is the perfect destination to serve as a hub for travelers who go to those different locations," Martin said. "By using these locations as a way to tell our story, we hopefully will bring visitors back into our community and spend money on hotels, motels and shops."

bblackwell@semissourian.com

335-6611, extension 137

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