Hotels, inns in sales-tax-free NH hope out-of-staters will stay and shop on Black Friday

By Holly Ramer, AP
Tuesday, November 24, 2009

Sales-tax-free NH seeks out-of-state shoppers

CONCORD, N.H. — New Hampshire is ramping up efforts to attract out-of-state shoppers for tax-free holiday shopping with a variety of lodging deals that include everything from gift wrapping supplies to a 4 a.m. ride to the mall.

Year-round “shop and stay” packages are common across the country in states with large outlet malls and shopping centers, but New Hampshire hotels and inn operators claim an extra advantage in the state’s distinction as the only one in New England without a sales tax. They hope out-of-staters planning to cross borders to shop on “Black Friday” will consider arriving a night early or sticking around for the weekend.

That could be a tough sell in this economy. With consumers squeezed by tight credit and rising unemployment, economists don’t expect to see significant spending until well after the holiday season.

Lorraine Day, general manager at the Highlander Inn in Manchester, said that by Monday, there weren’t many reservations for the hotel’s “Black Friday Shopping Frenzy Package,” which includes overnight accommodations for two, a coupon book, shuttle service to the Mall of New Hampshire and a boxed breakfast for $110. But she’s hoping for an influx of last-minute guests.

“They don’t have to worry about parking or gas, and they get their breakfast to go as well,” she said. “We want it to be as easy as possible for the guest.”

In North Conway, the Cranmore Mountain Lodge urges couples to use its outdoor hot tub after a long day of shopping. For just under $200, the “Shop Till You Drop” package includes a two-night stay, breakfasts, and a purse full of coupons, energy bars and samples from area stores. In Concord, the Courtyard by Marriott offers a 1-night stay for $119 with a coupon book and $25 gift guard to the Tanger outlet mall in Tilton.

Elise Conlon, owner of the Dudley House Bed and Breakfast in Alton, will have a house full of family this weekend, but is offering a 25 percent discount to all out-of-state shoppers starting Sunday and continuing through Christmas Eve. To get the discount off the regular rates of $115-$125, guests will have to show a receipt as proof that they bought something.

“We thought with the economy the way it is, it would be nice to give that break and then perhaps promote business up here as well,” she said.

In another sales-tax-free state, Bill Sullivan, chairman of the Delaware Hotel & Lodging Association, said many hotels there offer shopping packages throughout the year but he wasn’t aware of promotions specifically geared to Black Friday. And he said many shoppers from neighboring states tend to arrive, shop and head home fairly quickly.

That’s the approach Justin Poore plans. Poore, 30, of Haverhill, Mass., was in Salem, N.H., to check out prices on Blue-ray disc players. He said he plans to return on Friday to shop, but wouldn’t consider staying overnight because he lives minutes from the border and doesn’t plan to shop for long.

“I’m quick. I know what I’m looking for,” he said.

The day after Thanksgiving — traditionally the biggest shopping day of the year — is called “Black Friday” because it’s key for many businesses to go in the black, or turn a profit. But not everyone waits until then. Paul Imeriano, 51, of Melrose, Mass., also was in Salem on Tuesday and picked up several gifts for his children.

He said he wanted to avoid the Friday crowds and was motivated by his disgust for politicians in his home state, which earlier this year raised the sales tax to 6.25 percent.

“Any time I can save a dollar, I’ll save a dollar. I never did this before, but now I do,” he said.

Economist Dennis Delay of the New Hampshire Center for Public Policy Studies said annual retail purchases per person in New Hampshire are well above other New England states, suggesting about 20 percent of its retail sales come from out-of-staters. He said the tax increase in Massachusetts likely will drive more people over the border, but they may be spending less.

“Massachusetts has lost more jobs than we have, their income has declined more than ours has so it’s hard to say whether the increase in Massachusetts is going to be a benefit for New Hampshire or if it will be outweighed by the fact retail sales have declined because people in Massachusetts have less income,” he said.

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On the Net: www.visitnh.gov

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