It started last November. That’s when the price of gasoline went up significantly and Americans began spending less time behind the wheel. That trend has not abated.
It’s had a profound effect on our country. This country’s economic foundation, in my opinion, is based on two simple things — driving and spending. If we do less of either, we’ve got a problem. If we do less of both, we’re in trouble.
When gasoline was $4 a gallon in June, predictions for the summer travel season became dire — as in the end is near. The evidence was supported by a Federal Highway Administration report that showed we drove 12.2 billion fewer miles in June than a year earlier.
Overall, Americans drove 53.2 billion fewer miles from November through June than they did over the same eight-month period a year earlier.
It was a larger decline in miles driven by Americans than over the entire decade of the 1970s. Remember the oil embargoes, long gas lines and no gas on Sundays? Though the basis of the financial meltdown last week was in large part due to mortgage-lending practices, the escalating prices of fuel and food have not helped. Is it any wonder we’re in a world of hurt now?
One would think that high gasoline prices would translate into a record windfall from taxes on gasoline and diesel. Not so. The taxes are based on gallons sold, not the price. Fuel consumption in the first quarter of this year was substantially less than in the first quarter of 2007. Motorists consumed 400 million fewer gallons of gasoline and 318 million fewer gallons of diesel in the first quarter of this year.
That forced Congress a week or so ago to inject $8 billion into the federal highway trust fund to keep federal highway dollars flowing to the states.
So, if people are traveling less these days, would someone explain to me why Joplin’s 4 percent hotel-motel tax is generating more tax revenue than it did at this time last year? If the trend continues, Joplin’s motel-hotel district on South Range Line Road is on track to beat last year’s record of nearly $1.14 million.
In the first seven months of 2007, the tax produced $661,465. In the first seven months of this year, the tax produced $675,180. Proceeds were down in only two of those seven months this year — January and March. The ice storm and the tornado actually helped local hotels, but were they enough to offset the overall downturn in tourism. Hmmm?
Not only am I stumped, but so is Vince Lindstrom, head of the Joplin Convention and Visitor’s Bureau. To say he has been pleasantly surprised is an understatement.
“Actually, May and June both did better than I expected. It may turn out that my ‘make lemonade out of lemons’ slogan might work,’’ he said. “Certainly gas prices and airline ticket prices are giving people pause to take short trips this summer.’’
Lindstrom notes that Joplin’s hotels did feel “a bump’’ in July when the Downstream Casino opened. But will that last? What can we expect for the rest of the year? It all bears watching — watching South Range Line that is.
Coming soon
By now, McAlister’s Deli should be open in the new shopping center at 24th Street and South Range Line Road. Next to open there could be Coconut’s Tropical Grill.
An owner of the new restaurant, who also has a stake in the Del Rio cafes, said an announcement about what is planned could be coming in 30 days or so.
It’s my understanding that this will be a wholly new venture and concept.
If you have news about something happening on Range Line Road, dial (417) 623-3480, Ext. 7250; or send an e-mail to wkennedy@joplinglobe.com; or send a fax to Wally Kennedy at (417) 623-8598.
