After weeks of halted or altered service models, local businesses have been busy preparing for the state’s phased reopening plan. For Lexington’s tourism industry, however, challenges will likely persist for some time.
Predictably, restrictions on travel from out-of-state, along with the cancellations of Keeneland’s spring meet and the delay of the Kentucky Derby, have already had significant impact on Lexington’s economy. According to the Kentucky Travel Industry Association, 71.6 million people spent nearly $7.6 billion in the state in 2018. Those visitors generated $787 million in state and local tax revenue that year.
“There has been sort of an outsized impact on the tourism industry,” said Mary Quinn Ramer, president of VisitLEX. “It seems like, with having just eight weeks’ of data at this point, that April was the bottom of the bottom.”
Ramer said that a number of planned conventions and conferences have also cancelled, though most of those cancellations run through July — perhaps a sign that many organizers are holding out hope that they can conduct events later this summer.
In the Lexington area, two of the biggest attractions for tourists are Thoroughbreds and bourbon. Horse farms and distilleries have suspended their tours and other in-person experiences, but are making plans for how to proceed once they get the governor’s go ahead.
At James E. Pepper Distillery, tours have halted and the consumer-facing retail store at the company’s Manchester Street base is closed.
“It was a very tough blow for us to have to close our retail and tour operation,” said James E. Pepper owner/operator Amir Peay. “Our company will survive without the retail and tour side of the business. We are pretty well-established in the national and even international business, so our products are in high demand, but it was still a painful loss of revenue.”
Peay said Beshear’s phased reopening plan could allow James E. Pepper to open the retail store in May, but would not allow tours or tastings. Social distancing, face masks and temperature checks would all likely be part of the plan for retail.
"The term ‘opening back up’ sounds a little more all-encompassing than it actually may be. We’re not overly anticipating anything or counting on anything.” — Amir Peay
“I think we’ll wait to reopen until it makes sense from a dollars and cents point of view and to have it be safe for our employees,” Peay said. “I think there’s still a lot of uncertainty, and while we’re optimistic, I think it is cautiously so. The term ‘opening back up’ sounds a little more all-encompassing than it actually may be. We’re not overly anticipating anything or counting on anything.”
Horse Country, which is a nonprofit serving as a central booking outlet for Thoroughbred farms and equine clinics, has taken a significant hit since the shutdown.
Whenever those members are permitted to resume tours, they will probably look different — smaller groups are a given, and it seems unlikely that people from different households would be loaded into vans or buses for tours. Some parts of some tour locations may be inaccessible as a result.
“We’re working with one of the local task forces to review best practices for reopening and we will reopen tours as soon as those guidelines are put in place and as soon as our members feel confident about reopening,” said Anne Sabatino Hardy, executive director for Horse Country, who notes that the individual horse farms have always determined for themselves when and how to participate in the tour program.
In the meantime, Horse Country has had unexpected success with virtual tours. Farms have begun streaming weekly tours on Facebook Live, giving viewers the chance to go even beyond what an in-person tour could offer, like the chance to check in with a retired horse on a far-flung part of a farm property.
Hardy said she has been surprised at the reach those virtual tours have had. One tour from Claiborne Farm in Paris had 200,000 views — more virtual tours from one video than Horse Country has had in its six-year existence so far.
“The opportunity for our members to share a bit of peace and fun and tell our stories through the virtual tours is our bright spot in all this.” — Anne Sabatino Hardy
“The opportunity for our members to share a bit of peace and fun and tell our stories through the virtual tours is our bright spot in all this,” Hardy said. “Healthcare and frontline workers have reached out thanking us, classrooms have watched together, parents and kids have watched together — and these are folks we likely never would have reached through traditional marketing methods, and who were unaware of the organization prior to COVID-19.”
Hardy said she’s hopeful that surprise marketing boost could translate to a bigger audience when the time is right.
But what will tourism in the bluegrass look like “when the time is right”?
So far, Ramer says that travel industry surveys indicate people will be hesitant to travel too far afield — even when they’re permitted to. Additionally, Gathan Borden, vice president of marketing with VisitLEX, believes significant unemployment numbers will shrink many people’s budgets.
Instead of a week in another country, they may be looking to take a long weekend or a day trip in-state. Ramer said where VisitLEX would previously be trying to attract people from neighboring states, it may now redirect its limited marketing dollars to more nearby population centers, like the Cincinnati area.
“One thing we’ve talked about is that in Lexington, a lot of the attractions are things you can do without crowds,” said Borden. “You can socially distance at McConnell Springs, go down to hike at Red River Gorge. There’s the mural challenge; you could even have a good weekend exploring different parts of the city, getting some takeout and go enjoy that in a park.”
Borden is hopeful local travelers can be convinced to stay at least one night in Lexington; VisitLEX gets its operating revenue from a portion of the tax collected on hotel bills, so the organization is watching with particular anxiety.
There is one thing Lexington does have going for it — the people who live in Lexington love it. The #ShareTheLex hashtag that appeared on social media a few years ago could now help deliver the message VisitLEX needs people to hear more than ever: This is a great place to visit.
“The number one reason people come to visit places is to visit friends or relatives,” said Borden. “We talk about that a lot because locals are really key in helping us talk about how great the city is as a destination. It is their community; at the end of the day we’re marketing the community on behalf of the locals.”