Good news and bad news about rising gas prices

With gas prices above $4 in some states, some North American travelers are cancelling vacations and re-thinking summer travel plans, but on the other hand, the cost of gas could spur the growth of local tourism.
 

And some studies show that a majority of Americans will perhaps not even let gas prices change their minds.
 

“Despite high gas prices and increasing airfares, a new survey from HomeAway, Inc., finds the majority of Americans still plan to take a summer vacation, but will adjust their plans in light of rising costs,” says the group.
 

According to a special summer edition of the “HomeAway® Vacation Rental Marketplace Report,” 81 percent of respondents report they will take a vacation this summer. Of those who typically take a summer vacation each year, 38 percent will not change their vacation plans, saying increased gasoline prices and airfares will not affect their travel. The rest of those surveyed will alter travel plans in some way to counteract rising costs, including:
 

—Vacationing closer to home (27 percent)
 

—Cutting back on other travel expenses such as lodging, entertainment and dining out (20 percent)
 

—Vacationing for fewer days (13 percent)
 

—Making other changes to their travel plans (3 percent)
 

“This survey shows that people still plan to take a summer vacation, but they also need to find ways to combat the high costs of traveling to a destination,” said Brian Sharples, chief executive officer of HomeAway. “For about half the price of a hotel, travelers can stay in a vacation rental home and reap additional savings from included kitchens, laundry facilities and on-site parking.”
 

Most travel observers envision travelers tending to stay closer to home this summer, particularly if gas prices continue to escalate, but not all agree with the findings.
 

The rising trend of local tourism is already noticeable among the residents of Michigan, who are not traveling long distances due to the rise in fuel price and are spending their money predominately by traveling in the region itself, according to tourism officials.
 

Some areas and attractions are trying to use the gas prices to their advantage. Already, some tourist destinations are offering gas vouchers of as much as US$50.
 

The situation has gotten the attention of the Obama administration.
 

"The attorney general’s putting together a team whose job it will be to root out any cases of fraud or manipulation in the oil markets that might affect gas prices – and that includes the role of traders and speculators," President Barack Obama said at a town-hall meeting in Nevada.
 

He added:
 

"We are going to make sure that no one is taking advantage of the American people for their own short-term gain."
 

No evidence has yet surfaced of actual fraud or price manipulation in oil markets, reports the AP.
 

Obama’s remarks appeared, at least in part, as more of an attempt to assuage public anger over rising gasoline prices. Other presidents have launched similar investigations during times of rising oil prices as well.
 

If gas were to go to US$5 a gallon and stay there, some analysts think, it could erase the gains the economy is making and tip the nation back into recession, because Americans would sharply curtail spending elsewhere.
 

By David Wilkening