Max Lange, of Wilson, throws his frisbee after saving it from a tree during the 5th annual Jackson Hole Sports Disc Golf Tournament on Sunday. For a rundown on the event, see this week’s Jackson Hole News&Guide.
Jenna Schoenfeld/JACKSON HOLE DAILY
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Will record oil price discourage tourists?

By Katy Niner, Jackson Hole, Wyoming
March 8, 2008

As oil prices continue to climb to record highs, many analysts, including the University of Wyoming’s energy specialist, expect summer pump prices will rise in response.

Consumers will feel the effects everywhere — at the gas station, grocery store, and at the airport ticket-counter, said Charles Mason, the H.A. “Dave” True, Jr. Professor of Petroleum and Natural Gas Economics, a primarily research position at the UW.

“There is no question here that vehicle fuel prices are going to be higher this summer — the highest we will have seen in our lifetimes,” Mason said, predicting gasoline prices will hover between $3.25 and $3.50 a gallon.

Crude oil closed at a record $105 a barrel on Friday, according to the New York Mercantile Exchange. “I would be surprised if we see meaningful dips below $100,” Mason said, which will likely raise food, flight and fuel prices.

“Jackson is the end of the universe as far as the trucking routes are concerned,” he said, and prices on consumer goods will reflect rising shipping costs.

On Thursday, Wyoming gas stations averaged $3.03 a gallon for regular gasoline, slightly below the Mountain West regional average of $3.08, according to the Automobile Association of America. The national average was $3.19 a gallon for regular gasoline Thursday. Last summer, Wyoming’s pump price reached its record peak of about $3.21.

Though not a recreational economist, Mason speculated that rising fuel prices would dampen tourism to Teton County, particularly from the Midwest. However, the silver lining may be that travelers may stay within the region, Mason said, so Jackson could lure more visitors from the Wasatch area.

Even though fuel prices have long been used to project tourism, Sean Love, owner of Jackson Trading Company on Town Square, has seen “rubber-tire traffic” remain strong in the face of rising prices. With stores in Jackson and West Yellowstone, Love said he has had banner years in spite of fuel fluctuations.

Visitors consider other travel costs, like accommodation, above fuel expenses, he said.

“Gas prices have a lot smaller impact on where they are going to go,” Love said. With this in mind, they often make their plans at the last minute based on special offers and availability, he said.

Even the motor-home set is still visiting, Love said. About 40 to 45 percent of his business comes from repeat customers, and in the last two or three years, European travelers have accounted for much of his sales growth.

More than fuel prices, Love expects the overall health of the economy will have a greater impact on Jackson tourism.


 
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