Despite Gas Prices, Business Is Up

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06/04/2008

Despite Gas Prices, N. Fork Businesses Boom

By:Robert Wargas

With the price of a gallon of regular gas as high as it's ever been on Long Island, many business owners may have feared that the cash registers would be a little short this Memorial Day weekend. But on the North Fork, where seasonal hot spots abound, the steep prices didn't seem to keep anyone away, or even dent their spirits.

"People seemed to be in a good mood," said Monica Harbes, manager of Harbes Family Farm and Vineyard in Mattituck. "The weather was gorgeous." The clear skies and comfortable temperature, she said, seemed to draw people in from all over. To her, it was like any other Memorial Day.
"There was still a fair amount of people who came out even though prices everywhere are very high," she said.
During a holiday when travel is popular, motorists everywhere are seeing higher numbers at the pumps. Gas prices now are at milestone levels and continue to rise. Last month, prices at the pump reached an unprecedented $4 for a gallon of regular gas. According to statistics from the Automobile Association of America, New York remains one of the most expensive states for gas, with the average price of a gallon of regular hovering at around $4.15 statewide, as of press time last week.
So what is the state where the least expensive gas can be bought, according to their numbers? South Carolina, with a statewide average of $3.79 for a gallon of regular. Other less expensive states include Arkansas, Arizona, Mississippi and Tennessee, all with statewide averages well below $4 a gallon for regular.
Despite the numbers, North Fork roads still bustled with locals and daytrippers. Deborah Wilm, manager of Castello di Borghese Vineyard and Winery in Cutchogue, said she actually thought business was up from last year's Memorial Day weekend. Her vineyard is located along Route 48 in Southold Town, which she said is a road less traveled than Main Road. Nevertheless, people showed up, eager to drink wine and enjoy themselves.
"I would say we did very well in relation to last year," said Wilm. "I can't say we were overwhelmed with people, but business was good."
The promising turnouts for area businesses may not have been just pure happenstance. The AAA estimates that more people are keeping their travels local in light of gas prices, which means more Long Islanders stayed home or stayed in their area this Memorial Day weekend - a plus for area businesses. Before the holiday, the AAA predicted that 37.87 million Americans would travel 50 miles or more from their homes for Memorial Day. This represented a drop of about 1% from last year's estimate of 38.23 million.
Other statistics, though, paint a much more grim picture of how Americans are dealing with surging fuel and energy costs. A recent Gallup poll found that 36% of Americans say that they're altering their summer vacation plans as a result of gas prices. That same poll found that 21% say they are sticking to their guns and forging ahead with their original plans. The remaining portion said they had no plans to travel during the summer. All poll numbers were significantly higher than when the same poll was conducted in 2006.
"We have our concerns about how gas prices will affect us," said Wilm. "But right now we're not feeling it."
The Gallup poll attempted to find out exactly how people will be changing their travel plans this season, and found that the majority of the group said they will be canceling their trips altogether, citing unaffordability. A large chunk said they would be changing their destination to a closer location or taking a shorter trip. Others said they'd cut down on the number of trips they take this season and stick to public transportation.
But gas prices aren't just affecting Americans' vacation plans. They're also affecting at-home expenses. Polls now show that 60% of Americans say they're cutting back on household spending to meet their own gas needs. According to the Gallup Organization, many Americans say they're considering buying more fuel-efficient vehicles. Also, the organization's statistics show that at least half of Americans are carpooling, forgoing certain recreational road trips and even consolidating errands so that they spend less time on the road.
Southold Town Councilman Al Krupski, a farmer who works out in the fields everyday as he prepares to open his family's farm stand, said he saw no difference in the amount of traffic on the roads as compared to other years, even when considering the prices at the pumps.
"Of course, the weather plays a major part in any weekend out here," he said. "But Memorial Day is always a busy weekend out here. People are always out ... The roads were packed."
For Memorial Day, a signal of the beginning of the warmer weather, many Americans get in their cars and take a break. In fact, the AAA estimates that more than 12% of the US population celebrates Memorial Day away from their neighborhood.
But as gas prices continue to rise, people may start celebrating just a little bit closer to home.

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