The effect of higher fuel prices on recreational boating is indeterminant:
Fuel prices have put a damper on recreational boating for some, but with the busy season just gearing up, there's still hope that business will stay above water.
"It's no higher than last summer," said Mike Bradley, director of boating industry services for North Carolina's Small Business and Technology Development Center. "I can't imagine that unless there's an overall increase - disproportionate and unexpected increase - that's it's going to hurt the boating industry."
Bradley said that recreational boat sales are down, but the slump can't be solely attributed to fuel costs. Recreation business in general, he said, has slowed, partly because of the economy.
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Christina Heath, manager of Rudee Tours at Rudee Inlet, said she is crossing her fingers that business will be what it was last summer, when steep gas prices didn't put a significant dent in tourism.
Heath said that fees were raised a few dollars on their dolphin and fishing headboat tours to keep up with fuel costs, but people kept coming. "As far as we go, it hasn't really made a difference yet," she said. "It might this summer. We'll see."
That's not the case with Tony Wooddisse's Camden boat-servicing business, Shore Flyte, where fuel prices have had a "tremendous" impact on business.
"It's virtually stopped everybody boating - everything up to 30 feet," he said. "It doesn't affect the wealthy."
Wooddisse said that the Ford plant closure in Norfolk probably can be blamed for part of the 40 percent downturn in his business since late 2005. Anyone still boating, he said, is cutting back on use.
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"It's looking inevitable that there's going to be a dramatic downsizing in the industry," Wooddisse said. "Probably starting with sales. Then people like me."
Only one comment today: I'm tending to agree with Bradley that high fuel costs will have little effect on recreational boating (i.e., inelastic demand). The idea that people will stop running their boats, "dramatic downsizing," is pure hyperbole.
