Unpredictable fuel prices, economy worry Wyo's guiding industry

Unpredictable fuel prices, economy worry Wyo's guiding industry

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LANDER -- Record-high gas prices this summer didn't hamper interest in hunting, fishing and wildlife-watching trips - but they did raise the cost of doing business, big-time, several Wyoming outfitters said.

Many in the Cowboy State's tourism industry had feared high fuel costs would keep visitors away from Wyoming this summer and early fall, but most outfitters didn't find that to be the case.

The number of customers they served was pretty much in line with recent years, but the cost of shuttling those customers around and feeding them increased drastically, several business owners told the Star-Tribune.

Gas prices hit record highs this summer throughout the country, and Wyoming had its own record average of $4.12 per gallon on July 17, according to the American Automobile Association. Diesel was selling for an average of $4.72 per gallon on that same day - also a Wyoming record.

In September, gas prices began to drop, significantly, and as of this week they're hovering around $2.18 per gallon in Wyoming.

For hunting, fishing and wilderness guides, however, the damage was already done before the prices started going down.

Michelle Sauerwein, co-owner of Boulder Basin Outfitters in Cody, said her company saw no reduction in customers, but has seen a sharp decline in its profits. Michelle owns the business with her husband, Carl.

Boulder Basin guides take people on hunting, fly fishing and on other pack trips, including photography safaris and wilderness exploration. And most trips are booked well in advance, Sauerwein said.

"It is hurting our business quite a bit because we didn't feel right about charging a fuel surcharge to our clients," she said.

As of July 31 her company had already matched its previous year-end total for fuel costs, with months still remaining in the season, Sauerwein said.

"So it's really affected our income," she said. "We had no drop-off in clients. Most hunts were paid for before gas prices went up."

In the fall, the biggest trips the Sauerweins offer are generally eight-day elk hunts, she said, and in the summer they guide pack trips from Cody to Jackson. Trucking supplies between these two towns this summer carried an exorbitant price tag, compared to previous years.

It seems likely she and her husband will need to raise prices for future seasons, Sauerwein said, simply to cover the uptick in expenses and to raise wages for their five employees to help them afford the rising cost of living.

"It's still manageable, but it's not easy." she said. "The cost of fuel and general overhead and fees paid to the Forest Service all ads up rapidly. It just requires careful budgeting. There always seems to be some kind of gas crisis every year, right before the summer season hits. It just seems like a way to raise prices during the high-travel times."

Rusty Bogers, owner of A Double J Outfitters Inc. in Buffalo, has also seen his bottom line take a hit because of fuel costs, he said.

Bogers offers a variety of big game hunting trips and, like the Sauerweins, most of his trips were booked before the explosion in gas and diesel prices.

"It has drastically affected the expense side," Bogers said. "I'll bet you're looking at double the fuel costs from last year. Probably fifty percent higher than $9,000 (in fuel) last year. It's a big hit. We have four vehicles running up and down the road every day."

And Bogers had to raise his employees' daily wages this year by about $100 per week, he said, to cover the higher cost of living, which is also directly related to higher fuel costs. During the peak of the season, A Double J Outfitters has six employees, he said.

Bogers, too, will have to raise the cost of his tours for future seasons, he said.

Mary Scott is the co-owner of the P Cross Bar Ranch in Gillette, which has offered guided hunts for going on five decades. Because her company books outfitting trips three years in advance, she said, this summer's gas and diesel prices have created considerable problems for her business.

"It's affecting us pretty hard because we have to set rates about three years in advance, and we did not take into account a big increase in the cost in fuel," Scott said. "Our hunters are still coming. The people that are here now booked three years ago."

Because of this level of advanced booking, the P Cross Bar Ranch will not be able to raise rates until 2010, she said.

"It's a big blow to business. We just pay the extra. Fuel cost is a necessary cost of doing business that we have to pay, whatever it is," Scott said.

David Ellerstein, owner of Jackson Hole Anglers, a small company that offers fishing trips on the Snake River, said if gas prices kept tourists away from Jackson this summer, it "wasn't a huge effect" on his business.

He said he did see a slight dip this summer compared to previous years, but he attributes that more to the winter snowpack and the wet spring, than to fuel costs.

"There was a small drop-off, but this also was a very high-water year, so rivers didn't become fishable until later," Ellerstein said. "So most of the drop-off was during the high-water time, and once the water cleared, we did fine. August and September were very much in line with previous years."

Most guides and outfitters told the Star-Tribune that another concern, perhaps more worrisome than fuel costs, is the overall U.S. economy. If the economy continues its spiral into recession, the number of out-of-state customers next year could very well drop, they said. Most agreed it's too soon to tell, however, what the impact will be.

Chelsea Knoblock, office manager at the Spotted Horse Ranch in Jackson, said this year has been "really great," but there's a chance the recession could affect the ranch next season.

"This time last year we were pretty booked-out for the summer, but this year the bookings are not looking so great," Knoblock said.

Even though the larger economy might be a short-term concern for the tourism industry, the overall trend in Wyoming bodes well for tourism-based businesses, a state official said this week.

Diane Shober, director of the state's Travel and Tourism office, said new research shows that compared to years past, a higher percentage of out-of-state people who have expressed interest in visiting Wyoming are actually making the trip here.

Visitation tallies will not be available until sometime in 2009, Shober said, but anecdotally she's heard a similar message from just about everybody she's spoken with in the tourism industry: "Was it as good as 2007? No. Was it as bad as everyone had predicted? No, it wasn't," she said.

Wyoming Travel and Tourism has been tracking what's called "conversions" of tourists for years. When an individual expresses interest in traveling to Wyoming, and then actually makes a trip here, that individual is said to have "converted" from a potential tourist to an actual one.

"In 2005 the conversion rate was at 55 percent," Shober said. "But from January 2007 up to Sept. 30, 2008, our conversion rate has increased to (almost 60) percent."

Still, many in the guiding industry are expecting the recession to hit their businesses beginning next season.

Mark Boname, owner of North Platte River Fly Shop in Casper, which offers guided fly fishing trips, said his business "did fine" this year. But, at the same time, he didn't express optimism about the coming fishing season.

"This year we're up over last year," Boname said. "This whole (economic collapse) fell apart this last month and a half, and it's too soon to tell how it will affect next year, because we don't start booking until January and February."

But, he added: "We are budgeting for a low year, to be prepared."

Reporter Chris Merrill can be reached at (307) 267-6722 or chris.merrill@trib.com

Last we knew: Gas prices hit record highs this summer throughout the country, and Wyoming recorded its own record average of $4.12 per gallon on July 17.

The latest: Most outfitters and guides say the fuel costs didn't cut down on customers, but were still a big hit to their businesses.

What's next: Many in the wildlife tourism industry are concerned the struggling economy will reduce customer interest next season.]]>

Here's a look at this year's record-high gas prices:

$4.12 - Wyoming's highest average price for regular unleaded gasoline, recorded on July 17, 2008.

$4.72 -Wyoming's highest average price for diesel, recorded on the same day.

$4.11 - The highest average price for regular unleaded gasoline ever recorded nationwide, registered also on July 17 of this year.

$2.18 - Wyoming's current average price for regular gas, as opposed to $3.02 one year ago.

$2.22 - The current average price for regular gas nationwide, as opposed to $3.10 one year ago.

Source: The American Automobile Association]]>

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