War grinds down local economy

Paul Clinton

Hotels, cruise lines and movie theaters say they’re feeling a pinch

brought on by war as a spellbound nation stays glued to televisions

for updates from Iraq.

Hotels in both Costa Mesa and Newport Beach have seen an

accelerated pattern of cancellations of bookings over the past few

weeks, business leaders said.

“Yes, I think the hotels have experienced some cancellations,”

said Diane Prichett, the executive director of the Costa Mesa

Conference & Visitors Bureau. “People are just taking it a week at a

time, a month at a time. When it comes to making major decisions,

they’re holding back.”

While Prichett said it was too early to quantify the damage to the

tourist industry, the bureau is taking steps to reverse the trend.

From April 10 to 27, the bureau is providing free vouchers to

visitors who book rooms in the city. During that time, tourists will

be given a $40-a-night voucher for any one of 16 restaurants. They

will also be given a one-time $25 gasoline voucher.

The bureau is also offering special hotel rates, between $89 and

$129 per night. The usual, or “rack,” rates are from $99 and $159 a

night for a Costa Mesa hotel room.

“We think the gasoline and good vouchers, coupled with highly

competitive hotel rates, will get the attention of leisure travelers

who want to get away without emptying their pockets and gas tanks,”

said Jack DeDio, the Holiday Inn’s general manager and bureau’s

president.

In Newport Beach, the cancellations, while not as brisk, are also

picking up. In part, it’s because of security worries, said Marta

Hayden, executive director of the Newport Beach Conference & Visitors

Bureau.

“There is a safety concern,” Hayden said. “People are staying in.”

Hayden said the city has seen international and transcontinental

travel to Newport Beach dry up, but Southern Californians are still

visiting at solid levels.

The weekend’s Toshiba Senior Classic brought full crowds to the

city to watch Australian Rodger Davis win that golf tournament,

Hayden said.

Combat in Iraq, coupled with a struggling economy, has also

chilled a once-vibrant cruise-liner business in Newport Harbor.

And business in the coming months, at Hornblower Cruises & Events,

should remain slow, said Linda Mongo, company vice president and

general manager.

“For us, bookings are soft for April and May,” Mongno said. “The

economy is still very weak.”

Local movie theater managers also said they’ve seen a slowdown.

The national box office total for the first 10 weeks of 2003 fell

about 11%, industry leaders have said.

At the Edwards Metro Point 12, which is owned by Regal

Entertainment Group, last Friday and Saturday evenings were both

slower than usual, a theater manager said.

“The last week was slow a little bit,” assistant manager Hani

Mamlouk said. “It should be busier.”

Mamlouk, however, said business should pick up this Friday with

the release of the disaster-epic “The Core” and “Basic,” a military

drama with John Travolta and Samuel Jackson. The hotly anticipated

“Matrix Reloaded,” set for a May 15 release, should also bring

customers back to the multiplex, he said.