Virginia Beach Faces Decline in Summer Tourism Amid Rising Costs and Changing Visitor Trends

Virginia Beach Sees a Dip in Summer Tourism: What’s Happening?

As summer comes to a close in Virginia Beach, many are left pondering a surprising trend in tourism: the influx of visitors that buoyed the area for several consecutive years seems to be waning. Although the post-pandemic travel boom brought a surge of tourists eager to soak up the sun and local attractions, 2024 has painted a quieter picture for this beloved beach destination.

What Changed After the Travel Boom?

After successfully navigating the pandemic, families flocked to drivable destinations like Virginia Beach and the Outer Banks, seeking safe getaways. Stimulus checks were also a helping hand, allowing many families to hit the road. Nancy Helman, the director of the Virginia Beach Convention & Visitors Bureau, summarized the change: “People aren’t traveling as much as they were, for economic reasons. Post-COVID revenge travel has ended.” Increasing hotel costs, dining expenses, and the overall price of vacations are making potential travelers think twice.

In fact, data from Smith Travel Research indicates that the average daily hotel rate in the U.S. reached $158.45 in May, making it the second-highest month ever recorded. The cost of enjoying a vacation has certainly taken off, making luxury experiences far more appealing.

Quality Over Quantity: The New Trend

This summer, those who did choose to vacation in Virginia Beach were often willing to spend a bit more on their accommodations. Upper upscale hotels have seen a boost in occupancy rates, while economy hotels are struggling to keep up. Dan Roberts, a vice president at Virginia Tourism Corp., notes how “Upper upscale hotels…tend to benefit from group and event business.”

Interestingly, guests’ expectations are rising. With a strong emphasis on the hotel experience, those looking for a place to stay are naturally gravitating towards more luxurious options that offer exceptional service and amenities. With around 15% of Virginia Beach’s hotel inventory classified as upper upscale, spots like The Cavalier Hotel and the Marriott Virginia Beach Oceanfront Resort are proving to be a hit!

What About Other Local Attractions?

The Outer Banks experienced a 7.6% drop in occupancy rates between January and July compared to the previous year, a sign that tourism may be stabilizing to a more sustainable level. Lee Nettles, the executive director of the Outer Banks Visitor Bureau, acknowledges that “the decline has produced less wear and tear on the destination and a better experience for visitors and residents.”

In contrast, Williamsburg, another popular destination, saw a 10% to 15% drop in tourism. Residents and business owners feel the pinch, particularly the food and hospitality industry. Rachel Sears, executive director of the Williamsburg Area Restaurant Association, mentioned, “Most businesses are feeling a little bit of a downslide from last summer.” Likewise, Historic Jamestowne faced challenges from extreme weather conditions, which affected accessibility and visitor morale.

Looking Ahead: Autumn Events Offer Hope

However, there’s still hope for a busy fall season. Exciting events like the Neptune Festival Boardwalk Weekend in Virginia Beach and Busch Gardens Howl-O-Scream are around the corner, promising fresh waves of visitors. Edward Harris, CEO of Visit Williamsburg, remains optimistic saying, “We’re confident that the back half of the calendar year will yield strong performance numbers.”

In Conclusion

This summer has been a mixed bag for Virginia Beach and surrounding areas—while there’s been a notable dip in tourism compared to previous years, many industry insiders view this adjustment as a positive chance for local spots to breathe and improve. As they prepare for upcoming events and explore new ways to attract visitors, one thing is clear: Virginia Beach may be adapting, but it’s by no means fading away!