Louise Befumo's four motels along the New Jersey shore would normally be packed at this time of year.
"When you have a heat wave like this, people should be running to the shore," says Befumo, who has been in the motel business in New Jersey since 1972.
"Still, we don't fill up. A lot of people have gone from having secure incomes to not being sure about their jobs."
This summer Befumo hasn't lit the "No Vacancy" sign even once during the week.
"There's a lot of misery among middle-class families with incomes between $40,000 and $85,000," says Chris G. Christopher Jr., an economist at forecaster IHS.
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WAVE GOODBYE
Tourists staying home.
"Discretionary spending for things like taking a vacation aren't at the top of the list."
Unemployment for leisure and hospitality workers in June was 10.9 percent, higher than the 9.1 percent national average, and second only to construction workers, according to the US Bureau of Labor Statistics.
June occupancy levels at economy motels -- those charging an average nightly rate of $52 -- was 61 percent, says Smith Travel Research. It was 66 percent in 2007.
One sign people are skipping vacation: Average gasoline demand for the four weeks ending July 15 fell 1.3 percent, the 18th consecutive drop for the average this year, according to MasterCard.
In New Jersey, tourism spending may not return to 2007 levels of $39 billion until 2012, according to a report for the state by Vantage Strategy, a consulting firm.
Midway through the July 15 to Aug. 15 peak season, occupancy at Befumo's motels is running about 65 percent, compared with 90 percent five years ago, she says.
Her sales may fall as much as $100,000 to $200,000 per hotel this year.
"We just have to eat the losses and hope it gets better," she says.
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