Summer tourists flock to boardwalks and piers while sticking to their budgets

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NEW YORK (AP) — Small businesses along popular vacation destinations like boardwalks and piers in the United States say the number of tourists flocking to the waterfront is back to normal, to pre-2020 levels. But while the wealthy are spending freely, lower-income vacationers are sticking to carefully planned budgets.

Ticket sales for the 13-year-old attraction have been above 2019 levels since 2021, and so far this year are running slightly above 2023 levels, said Sean Bailey, marketing director for the SkyWheel observation wheel next to the boardwalk and park in Myrtle Beach, South Carolina.

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Bailey notes that tourists who buy the cheaper tickets — which have risen from $18 to $21 this year — are planning ahead and buying online rather than walking to the 200-foot-tall attraction. A typical ride, or “ride,” on the SkyWheel, which has glass-enclosed gondolas that seat six people, takes 10 to 15 minutes.

On the other end of the spectrum, more expensive tickets are becoming more popular. There are $35 sunrise tickets and $109 VIP tickets that include up to four people and give the buyer a 30-minute ride. SkyWheel also offers a $250 gender reveal package that includes a light show and rides for up to six people.

“People are looking for more sophisticated experiences that go beyond just a regular flight,” Bailey said.

According to the U.S. Travel Association’s forecast, tourism volume in 2024 is expected to surpass 2019 figures for the first time since the pandemic began, with 2.45 billion trips made, up from 2.38 billion in 2023 and 2.40 billion in 2019.

Domestic tourism is recovering faster than international tourism. U.S. domestic travel spending, which includes general travel spending and passenger fares, is projected to reach $975.6 billion in 2024, 98% of 2019 levels. International travel spending is projected to reach $153.9 billion, about 83% of 2019 levels. Both are adjusted for inflation, according to the U.S. Travel Association.

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Like the CEOs of large, consumer-focused companies, small-business owners say they see a spending split between wealthy Americans, who have held their ground, and those in lower income brackets who are more cautious. Wall Street has posted double-digit gains last year and so far this year—even with some recent volatility—while wage increases have slowed and inflation has remained a drag even as price pressures on consumers have eased.

On Navy Pier, overlooking Lake Michigan in Chicago, Robin Harris, owner of Confidence Apparel, which sells clothing with affirmations, says foot traffic and sales are up this year compared with last. Customers are more conscious about their spending, she says, choosing items they can wear more than once and favoring quality over quantity. Among the best-selling items are a $30 T-shirt in assorted colors that says “Inhale Confidence, Exhale Doubt” and a $75 jacket with a recipe-like list of ingredients including “Love, Kindness, Courage, Resilience.”

“Customers are starting to be a little more intentional about what they buy rather than just buying anything and everything,” she said.

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Elsewhere on Navy Pier, Robert Gomez owns Beat Kitchen Cantina, a Mexican-fusion restaurant, and Bar Sol, a full-service restaurant with a patio. He says sales at that restaurant are up 30 percent over last year, with customers happy to spend $8 on tacos, up $1 from last year. Gomez has expanded his upscale Bar Sol and made other improvements until sales are unbeatable.

Gomez also owns two live music venues that serve food, located away from the tourist areas. While the tourists on the sidewalk seem more than happy to pay $40 for a main course at Bar Sol, the restaurants nearby, which mainly attract local Chicagoans, don’t see the same level of spending, he said.

“Tourists come to Bar Sol expecting to spend a lot of money, while the local customer is looking for better deals. They are more price sensitive, they are almost the other end of the spectrum. So it was difficult for me with the neighboring businesses in comparison,” he said.

At Laura’s Fudge in Wildwood, New Jersey, which has been around since the 1920s, owner Dave Roach said sales of fudge, salty taffy and chocolate-covered turtles have been up every year since 2020. He said many customers, often families who have been going to the boardwalk for generations, save up all year to have money to spend in Wildwood.

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“They know what it will cost them, and they don’t mind spending the money,” he said.

Michelle Rutkowski, who owns Boardwalk Best and Five Mile Marketplace on New Jersey’s Wildwood Boardwalk, which sells beach goods and souvenirs, has seen business ebb and flow for decades since her family owned businesses there in the 1980s.

Rainy weekends slowed business in April and May, but things have improved since then, especially after school ended in mid-June.

Rutkowski said she’s feeling positive about the sales momentum this year, with shoppers spending on souvenirs like keychains, magnets and T-shirts featuring Wildwood’s unofficial logo, a seagull holding a French fry in its mouth.

“People have budgeted reasonably for the holidays, and they are spending it,” she added. “This may not be the year we get back to 100% of what we were before, but we are definitely on that path.”

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