Freaky February: Unseasonal Slump Puzzles Timeshare Resorts, Retailers, Restaurateurs

Harried motorists gridlocked on Marco roads might disagree that tourists are missing the island during high season. But the general business buzz around town is that seasonal traffic isn't filling the tills of timeshare resorts, restaurants and retailers.

Businesspeople have several theories for why this February is financially softer than those of previous years. One is that Hurricane Wilma affected at least four timeshare buildings. Another is that unseasonably warm weather in the Midwest and Northeast is keeping tourists at home. Some say unseasonably cold weather here is hurting the drive market that helps boost timeshare resort occupancy.

And one businessman thinks it's possible the island is becoming more residential — and that locals aren't as free-spending as part-time visitors and tourists.

Timeshare resorts, always an island business barometer because of the retail spin-off for stores and restaurants, report that February occupancy is down from last year. "We've been looking at our budgets to compare growth and pace with previous years," said Phillip Starling, general manager of the Marco Beach Ocean Timeshare Resort. "January was soft against last year, February is behind, and so are March and April."

Starling said he and the general managers of the island's other major timeshare resorts — the Hilton Marco Island Beach Resort, the Marco Island Marriott Resort and the Radisson Suite Beach Resort — have discussed the slump with Jack Wert of the area Convention and Visitors Bureau. "We have been wondering whether the transient market might be thinking hurricanes, even though it's not hurricane season," Starling said.

Wert said the out-of-service timeshare properties are likely a factor, as are the warm Northern weather and Southwest Florida's unusually cold weather. He said accommodation rates are relatively high right now, reflecting the successful season resorts enjoyed last year.

However, "market factors should take care of that situation in the near future," Wert said. Starling said his timeshare resort will waive certain reservation restrictions to remedy slow bookings for March and April.

"We'll be looking at shorter booking times," he said.

Restaurateur Tony Rainone said he is convinced that empty timeshare units are a big factor. "If 1,400 units are going to be vacant until the middle of July, that means about 2,800 people a week are not here spending money," said Rainone, timeshare owner of The Crazy Flamingo, Sushi Blues & Steaks and Nacho Mama's.

"We're having decent weekends, but during the week it's hit and miss," he said. "In the next two weeks, we need good amounts of business."

Gary Elliott, owner of furniture store Interiors Interiors Interiors, said the slump may be partially caused by the island's becoming more and more residential.

Elliott said his store is slammed with orders for high-end interior decoration, but retail is off. "I spoke with a woman who owns a local clothing store, and she said she was also wondering if the island is becoming less of a tourist destination and more residential," said Elliott, head of the Marco Island Area Chamber of Commerce's Business Alliance Committee. "It goes a bit with what I feel."

At any rate, Elliott said, retailers are thinking of introducing winter sales and discounts to boost timeshare business.Elliott said another likely factor is that most people incurred some financial burden after Hurricane Wilma.

"That might have taken money out of their discretionary income," he said.