B&B owners feel bite of rising costs

Frontiersman

MAT-SU — The declining value of the U.S. dollar may be hurting Americans in the pocketbook, but it’s also leading some travel experts to predict an uptick in foreign tourists this summer. The prediction comes amid a shaky outlook for the summer tourist season as the struggling economy leads to belt-tightening for many American families.

Casey Ressler, membership manager at the Mat-Su Convention and Visitors Bureau, said it costs 40 percent less for international visitors to come to Alaska than it did last year.

“Because the dollar is so weak, Alaska becomes more appealing,” Ressler said.

Travelers from countries where their currency now trumps the U.S. dollar in value have a chance to get vacation deals in Alaska at value prices because of the exchange rate. It’s an advantage the state’s tourism industry is hoping helps spur a stellar season this summer.

“Alaska’s basically on sale, and it’s more the idea with the costs of the dollar,” Ressler said.

But predictions of more foreign tourists aren’t yet ringing true with some bed and breakfast owners in the Valley.

Alice Bish, manager of Talkeetna Bed and Breakfast, said she’s seen a shocking few foreign reservations so far this year.

“I’m really surprised,” Bish said.

Even more concerning — and a very real glimpse into Americans’ skittishness with their money these days — was a single week in which Bish said 4,000 people made reservations at the bed and breakfast only to have 2,000 call back and cancel because of financial reasons.

“They said it was because of the economy,” Bish said.

Also in Talkeetna, Sunshine Lake Bed and Breakfast owner Nancy Wilson said she also hasn’t seen a large influx of foreign reservations. Both Wilson and Bish said reservations from the Lower 48 seem to be the norm so far.

“Ninety-five percent of my visitors are from the southern states,” Wilson said.

But those visitors, many who are longtime guests at local bed and breakfasts, are starting to change their tactics. Wilson said she has noticed groups that typically visit once a year adding more people so the price of their trip can be split more ways.

Yet another worrisome question weighing on many lodge owners minds is what to do financially when visitors do come. Fuel and food prices for a bed and breakfast are often many times more than what an average household would spend, and that is something owners are watching closely.

Pam Holen, president of the Mat-Su Bed and Breakfast Association, said higher utility bills are forcing some bed and breakfasts to raise rates.

Holen had to do just that at her Dragonfly Gardens bed and breakfast on the shores of Cottonwood Lake.

“We’re finding electricity, heating, food prices — just about everything is going up,” Holen said.

For some like Bish, the uncertainty of living expenses creates a conundrum.

“I can’t raise my prices in the middle of the summer,” Bish said. “You just take a loss. You’ve got to keep your reputation going.”

Peg Vos, the owner of A B&B on C in Talkeetna, said she finds it interesting to have so many inquirers for the 2009 travel season, perhaps an indicator some feel the economy will get better next year.

“Maybe they’re saving for better times,” Vos said.

The bed and breakfast owners interviewed for this article all agree on one thing: they’re counting on the allure of Alaska and long-planned trips to bring the masses.

“These guys plan a year in advance,” Wilson said of annual visitors in a fishing group. “They love what they’re doing.”

At least a little help for bed and breakfast owners in the northern part of the Mat-Su Borough could come from the planned Cubby’s Marketplace grocery store near the Talkeetna Spur.

Wilson said a store there would let her breathe at least a small sigh of relief. The supermarket will cut down drive times for residents in the northern part of the Borough exponentially.

“Fuel costs are a consideration,” Wilson said.

Even so, a grocery closer to Talkeetna will still sell the same food marked up by other markets nationwide as their suppliers mark up their own prices in response to the economy. For Bish, that could mean a lot more greenbacks for the service she wants to provide her guests.

“I fix a really nice breakfast in the morning,” Bish said.

Contact Frontiersman reporter Michael Rovito at 352-2252

or michael.rovito@

frontiersman.com.