California energy crisis cuts into tourism

Associated Press

SAN DIEGO — Joan Conrad wasn't going to let blackouts stop her and the 13 high school seniors in her charge from taking an eight-day tour of California.

Such California theme parks as Universal Studios rely on electricity to keep their attractions alight. Fears that the sights will be darkened by the state's rolling blackouts have led to a decided drop in attendance. Associated Press

But had the trip been planned for summer, Conrad said, she might have chosen a destination with a more stable supply of power.

"It did give me a second thought," she said.

Not all tourists share Conrad's determination, and it's those less-hearty souls who have California tourism officials worried. They say the loss of potential summer visitors scared off by the threat of blackouts could take a big bite out of the state's $75.4 billion tourism industry.

"California's energy crisis hangs over the state's tourism industry like a dark cloud," according to a report from the California Chamber of Commerce.

Hotels already are starting to see a drop in business.

"Our business is gravely threatened by the specter of rolling blackouts and unreliable energy supplies," said Samuel Woodfin, who operates Woodfin Suite Hotels, a national chain with properties in seven California cities. "The effect on our state's business environment will be devastating — starting this summer."

A survey of 4,400 California hotels by Smith Travel Research indicated that occupancy rates dropped 2.7 percent in March, the latest month for which figures were available. The San Francisco area has seen the steepest decline, falling a total of 11.2 percent in the first three months of this year.

Laurie Armstrong, a spokeswoman for the San Francisco Convention and Visitors Bureau, attributed the decline to the softening high-tech economy in Silicon Valley after a banner year that she described as "kind of a 100-year flood in terms of tourism."

Of 164 small hotels and chains surveyed by the California Lodging Industry Association, 28 percent said they already have lost business due to the power crisis and concerns about blackouts, said Rick Lawrance, the organization's president.

Almost all hotels surveyed said their electricity costs had increased an average of 50 percent and now account for 10 percent of total operating costs. Many hotels have added fees ranging from $1 to $4 to nightly room rates to help cover those costs.

Theme parks are also feeling the heat.

Disneyland, Sea World and Universal Studios Hollywood — the state's top three attractions with a combined 22.7 million visits last year — all face threats of power failures this summer, according to representatives of those parks and power officials.

Like most hotels, they insist that safety procedures and backup generators will ensure the safety of visitors. The parks would likely get a warning from power providers before blackouts begin, and signs would go up alerting visitors about ride closures and other problems, tourism officials said.

Disneyland, the state's No. 1 attraction, draws its power from Anaheim's municipal utility, which has a more stable supply than Edison, according to Chula Castano-Lenahan, a spokeswoman for the Magic Kingdom.

For the first time in five years, Disneyland will be host to its Electrical Parade. But the illuminated nighttime extravaganza will draw its energy from rechargeable batteries.

Meanwhile, lobbyists for Universal are trying to have the theme park added to state legislation that would allow it to draw power from the Los Angeles Department of Water and Power, which doesn't expect to be plagued by outages this summer. Edison is Universal's current supplier.

In exchange for immunity from blackouts, Paramount's Great America amusement park in Santa Clara will voluntarily reduce power by up to 10 percent when asked by its utility, Silicon Valley Power. Under the plan, rides will remain open but the park will shut off decorative fountains and lighting along with some air conditioning.