MONEY

Labor Day not end of business at Delaware beaches

Nichole Dobo
The News Journal

The last big summer holiday has passed, but businesses at the beach are not preparing for hibernation.

The beach towns aim to keep busy long after summer ends. Capturing customers beyond the sand and sun crowd has created a wave of events that continue long after it is time to put the beach umbrella away.

That includes catering to football fans. Nicola Pizza began to offer a sports lottery a few years ago.

"They all add to it, it's the bottom line," said Nick Caggiano Sr., of Nicola Pizza at Rehoboth Beach, a family-run business.

In Delaware's beach communities, businesses and local leaders have worked for years to increase the bottom line beyond the summer sun. There are jazz festivals, the annual Sea Witch event in October, and other events that continue to draw visitors even as the days get colder.

"Really, the coastal area is getting known for those events after the main season," said Linda Parkowski, of the Delaware Department of Tourism.

After Labor Day, most children are back in school and the days start to get shorter as fall approaches. That means there are fewer families in the market for a vacation that spans weekdays. This begins what is sometimes called the "shoulder season," for beach-based businesses.

"We don't even call it the shoulder season anymore," said Carol Everhart, of the Chamber of Commerce. "We call it the summer season, and then the rest of the year."

In Delaware, the beaches are a major draw for tourists. Last year's Labor Day weekend brought more than 800,000 motorists through the state's three toll gates, according to AAA Travel, which cited statistics from the Delaware Department of Transportation.

The busiest days at Delaware's beaches are in July and August, Everhart said. After that, the most visitors come in September and October, drawing in more people than the months of May and June.

Geraldine Caliri has owned a home in Bethany Beach for 16 years. She became a full-time resident when she retired this summer. She has two favorite times at the beach. Early in the summer, when the vacationers start to come in because it brings "the smells in town of French fries, funnel cakes, pizza, sand being kicked up and the ocean smell and waves roaring," she said in an email.

Caliri also enjoys the vibes that come along with cooler weather.

"The second favorite time is the fall when everything starts to slowly close down. The beach is less crowded, the water warm, the days a little shorter and little by little the smells of summer dissipate and we start preparing for the winter," Caliri said in an email.

This Labor Day weekend, the last official holiday of the summer, travel was expected to be at its highest rate since the 2008 economic recession, according to estimates from AAA Travel. The agency reported higher consumer spending rates pointed to confidence that would spur spending.

It's too soon to say for sure how businesses at Delaware's beach communities fared this summer. Anecdotal reports suggest hotels, restaurants and rentals fared well. Early reports suggest retail sales were a bit sluggish, both in the downtown and in the area where discount outlets are located.

"The one category that is the biggest question mark is retail," Everhart said.

Many business reported travelers were still seeking out lower prices, Everhart said. That means picking the $15 meal over a $25 option – but the positive news is people were going out to eat.

Caggiano kept his prices this year the same. This helps keep bringing in families and others on a budget, he said. The waitresses and waiters this year noticed many tips were higher, signaling that customers had more money to spend.

"They said it means a heck of a lot," he said of his staff's reaction to the boosted tip income.

To help businesses in late August, some have suggested Delaware require all public schools to push back the start of the school year until after Labor Day. Sen. Gerald Hocker, a Republican representing Ocean View, has said he will write legislation that would require a later start date. Hocker is also a business owner.

Last week, some businesses in beach towns reported the pre-Labor Day start to the school year created a labor shortage.

"A couple of stores up here have already reduced their hours because they don't have staff to keep them open," Beth Webb, owner of Beach Break Bakrie & Cafe, said in an Aug. 23 story in The News Journal.

Staff writers Molly Murray and Rachael Pacella contributed to this report.

Contact Nichole Dobo at (302) 324-2281 or ndobo@delawareonline.com.

On Twitter @NicholeDobo.