Travel homes big draw in Fort Myers:
Faltering economy drives down sales
BY LAURA RUANE • lruane@news-press.com • January 22, 2009
Credit is tighter than it was two years ago. Gas prices are creeping back up after soaring last summer and then dropping.
Still, recreational vehicle dealers are hopeful for future growth, and for the 24th annual Fort Myers RV show opening today in North Fort Myers for a four-day run.
"We're expecting about the same attendance as last year - about 13,000," said Dan Wylie, Bradenton-based owner of the Dream RV dealership and president of Region 1 of the Florida RV Trade Association, which includes Southwest Florida.
The show at Lee County Civic Center features hundreds of RVs, including folding camping trailers, gas and diesel motor homes, travel trailers, toy haulers, fifth wheels, park models and van campers.
Prices will be posted on the rigs, with many reflecting manufacturer discounts, Wylie said. On a $200,000 motor home, for example, that could bring a $10,000 discount, he said.
About 100 outdoors and camping vendors also will display and sell their wares. That's a big reason why Phil and Doris Crane will attend sometime this week.
In addition to occasionally purchasing upgraded RV parts, "we buy gadgets to make life easier," said Crane, who's 69 and a former General Motors robotics engineer.
The couple from Cabot, Ark., are spending their 10th winter in their motor home, at Red Coconut RV Resort on Fort Myers Beach. They enjoy an active lifestyle there, often in the company of other RVers who stay for the winter. A small group has organized an Estero Island paddling excursion. "If it's too cold to go kayaking, we'll go to the show (Thursday)," Phil Crane said.
Although many people like the idea of having their own accommodations when they travel, the struggling economy has put the brakes on industry growth for now. Nationally, RV sales peaked at about 400,000 in 2006, and dropped to about 354,000 in 2007.
"We think 2008 will finish up around 235,000 to 240,000. For 2009, we're projecting shipments of around 186,800 units," said Kevin Broom, spokesman for the Reston, Va.-based Recreation Vehicle Industry Association.
Over the past year, the Recreation Vehicle Dealers Association has tracked the closing of about 55 dealerships across the country: That's less than 5 percent of its membership, said Phil Ingrassia, vice president/communications.
These industry setbacks come despite indications RV vacations can be frugal. A study by PKF Consulting, posted on the RVIA's Web site, for example, notes that "typical RV family vacations are on average 26 to 74 percent less expensive than other types of vacations studied."
Higher gasoline prices over the summer didn't help sell RVs. The average for unleaded regular peaked in the Fort Myers-Cape Coral market at $4.06 per gallon July 17. Prices trickled downward after that, until early 2009.
Wylie, however, thinks a tightening of lending practices hit harder. "Two years ago, just about anybody could buy an RV (on credit)," he said, adding that included borrowers who overbought, and couldn't keep up payments.
Nowadays, people "with some disposable income can still enjoy the RV lifestyle," Wylie said, adding long-term financing is not out of reach to people with good credit scores.
RV boosters place much of their hope for better times with the first wave of 79 million baby boomers retiring or poised for retirement. Mention that boomers' 401(k)s and other investment portfolios are in the pits, and Kevin Broom notes:
"New RVs are priced from about $5,000 to $500,000 - with the vast majority of purchases in the $40,000-and-under range. RVs are still very affordable. People are still going on vacation."