Demand and rates for Santa Fe-area hotels fell sharply in July as raging wildfires that are sweeping through New Mexico have prompted travelers to think twice about visiting the state.
Santa Fe-area hotels are charging 16% less in July than a year ago, the steepest pricing drop among major U.S. markets, according to Hotwire.com's monthly hotel rate report released Wednesday. The report publishes the rates booked on Hotwire.com during the second week of each month.
As USA Today's Laura Bly pointed out late last month, smoke drifting from New Mexico's massive Las Conchas wildfire, which had grown to more than 70,000 acres and forced the evacuation of Los Alamos, an hour's drive away, has sporadically impacted Santa Fe and other nearby communities.
Firefighters have made progress in recent days but fires continue to burn in other parts of the state. Campgrounds, hiking trails and other park lands - have been closed.
Monterey, Calif. is also reporting a downturn in business, with the average room rate of hotels in the area falling 9% from a year ago to $110. "This great coastal vacation destination had many pre-bookings earlier in the year for summer, but tourist flow has quickly fallen, especially now that the recent holiday weekends have passed," the report says.
Myrtle Beach, S.C. and Flagstaff, Ariz. are tied for third place, each with a 5% drop. Flagstaff has been dealing with slow traffic since February and hopes for a summer boost haven't materialized, it says.
Myrtle Beach had a busy summer last year and started off this summer strong, but hasn't been able to sustain the momentum.
Lake Tahoe in California, where hotels are charging 4% less on average than a year ago, rounds out the top five list of destinations with the steepest price drops.
Meanwhile, some top resort destinations that have struggled through the recession and the global financial crisis of 2008 are enjoying greater pricing powers.
Las Vegas tops the nation in room rate recovery with a 23% increase. "More convention bookings and leisure travelers are causing rates to increase in Nevada's most visited area," it says.
Grand Rapids, Mich., where hotels are 24% more expensive than a year ago, comes in second among the cities with the highest room rate increases. The city hosts "some of the world's biggest music acts this month," it says.
San Francisco (20%), New Orleans (14%) and Vancouver (18%) also made the list due to strong convention and group business and returning leisure travelers.
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