Feb 8, 2009

Despite economic storm clouds, local merchants stay hopeful for Mardi GrasBy Jaquetta WhiteNola.com

Batool Ali is worried that the feather boas and Carnival masks she usually can’t keep on the shelves during Mardi Gras season will be slow to move this year as visitors to her French Quarter store pay closer attention to their spending in the down economy.

“We are hoping this year will be good,” said Ali, owner of the Bayou Blue gift shop. “But people aren’t buying like they used to buy.”

Ali is not alone in her worry. Other French Quarter merchants are also concerned that the economic slump may mean that fewer tourists come to town for the two-week Carnival parading period, and that those who do make the trip will spend less on food, alcohol and souvenirs.

“I’m certainly optimistic,” said Peter Tompkins, president of Southern Candymakers on Decatur Street. “But if we use last year as an economic indicator, we’re not planning to break any records.”

The nation is facing its worst financial crisis since the 1930s, with a seemingly daily purge of jobs. As unemployment climbs, consumer confidence has fallen.

Consumer spending rose just 3.6 percent in 2008, the smallest gain since 1961. Travel is expected to decline 1.4 percent overall nationally this year, and seven out of 10 people who do plan to travel said they will stay fewer nights and spend less money on food, drinks and entertainment, according to a study by the U.S. Travel Association, formerly the Travel Industry Association.

Even this year’s Super Bowl didn’t escape the recession. People who spent thousands of dollars to attend last week’s game cut back on souvenirs and other purchases, according to several published reports.

Those factors imply at least some trouble for local hoteliers, restaurateurs and retailers during Carnival.

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