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4/28/96
High hopes for summer



The state's tourist industry voices optimism in wake of oil spill, but fishermen still feel the effects

By PAUL DAVIS
Journal-Bulletin Staff Writer



At least one group of seasonal visitors -- piping plovers -- have returned to the South County shorefront, despite January's devastating oil spill.

And human tourists aren't far behind, say the watchers of a Rhode Island vacation industry once considered in jeopardy because of the disaster.

Already, most of the area's weathered cottages -- going for between $450 and $2,000 a week -- have been claimed by winter-weary families, mostly from New York, New Jersey, Connecticut and Massachusetts, say rental agents.

And the number of inquiries from would-be visitors has jumped to nearly 11,000 from last year's 7,000, according to the South County Tourism Council.

"We haven't had a single cancellation as a result of the spill," said Elaina Tavarozzi, a sales associate with H.D. Randall Realtors Better Homes and Gardens, an agency that rents 85 cottages in South Kingstown and Charlestown.

"We still have some openings, but we believe the season will be just as good if not better than last year," she said, adding that the firm has already rented 70 percent of its cottages. Last year, the agency rented 80 percent -- but only by the end of the summer.

The current optimism is a far cry from the outlook in late January after the barge North Cape ran aground near Moonstone Beach, leaking 828,000 gallons of oil, killing thousands of lobsters and befouling birds. That grim scene -- Rhode Island's worst oil spill -- was publicized worldwide.

Shortly afterward, Timothy Tyrrell, an economics professor at the University of Rhode Island, estimated that the spill could cost Rhode Island between $30 million and $60 million in lost tourism revenue.

Tyrrell hasn't revised his figures. The impact of the oil spill, he said, won't really be known until the summer is over.

Some businesses have already taken a hit. In Galilee, many of the charter boats are empty, abandoned by sportsmen worried that the spill will spoil their spring fishing. And commercial fisherman, indirectly tied to tourism, must still deal with some closed waters.

But others point to signs that the tourism industry is strong.

A brutal winter, for instance, has spurred families with cabin fever to book vacations early. Also, since late January, the state has doubled its efforts to paint Rhode Island's beaches as pristine. That effort is paying off, state officials say.

"At the time of the spill, there were very bleak predictions about the summer," Tyrrell said this week. "A lot has happened since then."

Much is at stake, because in the moribund Rhode Island economy, tourism is "the only industry that has shown a consistent increase over the last five years," said John O'Brien, chief planner at the state Economic Development Corporation.

Last year, visitors to the state spent an estimated $1.59 billion, making tourism the state's second largest business after health care. In the summer, much of that money is spent on businesses along the coast, from Charlestown to Newport.

"The coastal area is the biggest generator of revenue during the year," said David DePetrillo, state tourism director. "If you have trouble there, you have trouble for the whole year."

To combat the spill, the state tourism division this year doubled its marketing budget to about $700,000.

Last month, it targeted 100,000 new Northeast customers with a direct mail campaign. The mailing went to families with an income of $40,000 or more and a day's drive away from Rhode Island.

The tourism agency also has aired national radio ads and created a newsletter to lure back former visitors to the state. It even has hawked Rhode Island in cyberspace, on America Online's Travel Forum.

All of the marketing efforts paint South County as a place of blue skies and sandy beaches.

"We've taken a lot of steps to expand the audience and to offset any potential losses," DePetrillo said. "We want to reassure tourists -- without mention of the spill -- that Rhode Island is still a great place to visit."

The state agency also is working with the South County Tourism Council, which this year pitched its beaches to Canadian tourists.

And the industry may get a boost from this year's brutal winter. Record snowfall prompted many families to make their summer reservations early, said Ann O'Neill, president of the South County Tourism Council.

"Mother Nature may be our biggest ally," O'Neill said. "People can't wait to get out."

But for some businesses, it may be too late, at least for the spring season.

Charter boat owners, who depend heavily on out-of-state fishermen to stay afloat, were idle this week. Usually they are on the water in early April.

"Tourism is doing well, but we are not," said Mitch Chagnon, a second-generation charter boat captain who spent Thursday morning cleaning his boat.

"I've got a stack of cancellations because of the spill," he said. "My business is off by 60 percent."

Chagnon figures he'll lose as much as $10,000 this spring, but "August and September look okay."

Frances Fleet, a charter company with three boats, also has lost a half dozen reservations, mostly from companies and fishing clubs worried about the spill, said office manager Tammy Charest.

"It scared a lot of people," Charest said. "We also do whale watching, but we haven't got a real feel for that business yet. It's too early."

To boost business, some charter companies are offering discounts and coupons, Chagnon said. "If you like to fish, there are some awfully good deals now," he said.

The commercial fishing industry also has been hard hit.

According to the Department of Environmental Management, lobster fishing remains closed in the area where the barge first ran aground. Some fishermen and fishing companies have filed claims against Eklof Marine, the barge's owner, seeking millions of dollars in damages.

"The short-term effect was very dramatic. We were basically put out of work," said John Sorlien, secretary of the Rhode Island Lobstermen's Association.

"They've opened up quite a bit of the waters and some of the guys are getting back again," Sorlien said. But ultimately, the spill could reduce the local catch by as much as 50 percent, he said.

"What concerns us most is the long-term impact. That's unknown."

Still, other South County businesses -- even some seafood restaurants -- are optimistic.

Lillian Kivisto, who helps run the family-owned Long Cove Camp Sites & Marina campground in Narragansett, expects business will be about the same as last year. "We're getting inquiries, even though we don't rent until May 1," she said.

And Dennis DeGrass, a broker with Wallander Realty, said that although the agency's summer rental business is off slightly, this year's business should match last year's.

"When the spill first happened, a lot of people were concerned," DeGrass said. "But once they realized it was being cleaned up, they came back."

Brian Handrigan, a co-owner of Champlin's Seafood restaurant in Galilee, agrees. Last weekend he served lobsters to some early tourists. "People understand that everything down here is clean," he said. "We wouldn't serve it if it wasn't."

Meanwhile, state tourism officials remain busy. This week, nearly 100 travel agents from the U.S., Canada and Britain visited Rhode Island at their request. Nearly two dozen tour operators are expected next week.

"There is still the question of what kind of lasting image the oil spill will leave," O'Neill said. "But if we have as dry a summer as we had last year, it will be a very good year."

And there are the plovers.

Federal officials had feared the birds, which have nested at Moonstone Beach for years, might not return after the spill.

On Thursday, however, four U.S. Fish & Wildlife Service officials erected barriers of yellow rope to keep beachgoers from disturbing the birds.

"They have returned," said Jennifer Casey, a refuge operations specialist with the federal agency. In recent weeks, federal workers have seen about a half dozen plovers on the beach. Some have scraped the sand, which plovers do before creating a nest.

It will take several weeks for officials to know if the birds will stay, or fly instead to nearby Charlestown or Cape Cod to lay their eggs.

For the moment, however, Casey is hopeful. The beach is clean again, with little trace of January's spill.

"So far, so good," Casey said. "The pipers could have landed, smelled oil and flown away."



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