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August 20, 2005
Work, fun come with a priceAnd that cost won't go down in near futureByRecord-Eagle staff writer TRAVERSE CITY - A lawn mower doesn't guzzle as much gas as a 52-foot boat, but owners of both are feeling the pinch of record-high fuel prices. "We just have to eat it this year," Dave Drake, owner of Lawn & Landscape Inc. in Traverse City, said of the rising costs of doing business with gas-powered mowers, trimmers and trucks. "Everything we use has a motor in it." Drake said passing on price hikes to customers isn't an option because the business already has contracts in place for services like lawn maintenance and landscaping. "There's not a lot we can do other than try to be as efficient as possible," he said. The state average on Friday for a gallon of regular gasoline was $2.72, compared to $1.96 a year ago, according to the auto club AAA's fuel gauge report. The average price around Traverse City was $2.77, the highest among Michigan's metro areas. AAA Michigan spokesman Jim Rink said demand drives that trend and predicted it will continue, at least through Labor Day and until the tourist season winds down. A recent AAA survey of 400 state residents showed 82 percent said gas prices would not influence their Labor Day travel plans. Judy and Don Jennings brought their 52-foot boat, Stepping Stone, to Traverse City this week from Harbor Springs. The vessel's tank holds 700 gallons of diesel fuel and it burns an average of 60 gallons per hour at cruising speed, but that hasn't stopped them from taking it as far as usual. "My thought has always been that if you can afford to own the boat, you have to use it," Judy Jennings said. The Jennings said they've seen just as many boaters out as in previous years and it might take a doubling of gas prices to get them to change their cruising habits. "It's just one of the factors," said Don Jennings, comparing fuel with other costs like boat maintenance and insurance. But the record cost of gas certainly has soured consumer tastes for items such as big recreational vehicles, said Dean Kuhn, owner of Dean's Auto & Camper in Traverse City. "It hurts," he said. "They're just not spending. They're waiting to see what will happen." But big-ticket motorized toys like RVs and boats are the exception to the rule this summer, said Mike Norton, spokesman for the Traverse City Convention and Visitors Bureau. He said hotels remained full despite skyrocketing fuel costs and weather seems to be a bigger factor than gas prices in travel plans. "I don't see it happening," Norton said of a pinch on local tourism heading into autumn. "If it hasn't happened now I don't think it will happen." Don Holacek, director of the Tourism Resource Center at Michigan State University, said Traverse City is a "premier destination" that likely won't take a hit from higher gas prices. Tourists statewide spent more this July than the same month last year, but not as much as expected. However, Holacek attributed that more to a sluggish economy than fuel prices. Robert Gattin, general manager of the Holiday Inn West Bay, said the hotel's summer business remained brisk despite higher pump prices. But he didn't rule out future impact if gas costs continue to rise. "Certainly, it's lingering out there," he said. Meanwhile, the number of people hopping on local bus routes appears to be up from this time last year. Joe Dekoning, executive director of the Bay Area Transportation Authority, said ridership numbers from July 1 to Aug. 10 were up 8 percent on urban routes and 4 percent on county routes. He said that's likely due at least in part to rising pump prices. "It causes people to consider other options," Dekoning said.
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