Mardi Gras Boosts Big Easy Business

But Mass Exodus Of New Orleans' Permanent Residents Could Follow Departing Tourists

(CBS/AP)  Todd and Julie Sutton walked hand in hand down Bourbon Street Monday, looking tired but happy, the beads that draped them clinking with every step.

The St. Louis couple were enjoying the mild weather and looking for a leisurely breakfast as they wound down from a weekend of Carnival revelry.

"We haven't stopped since Friday," Todd, 29, said. "It's been everything we thought Mardi Gras would be. We loved the parades, and the French Quarter is a blast."

The Suttons were among the crowd in town for the final weekend leading up to Mardi Gras, a crowd that merchants, hotel operators and others felt would exceed the 700,000 the New Orleans Convention and Visitors Bureau said visited the city during the same time period last year.

But those 700,000 will be leaving town after Fat Tuesday, and as CBS News correspondent Tracy Smith reports, many of the city's permanent residents could soon be following.

A recent study by the University of New Orleans found that nearly a third of the people here say they might be moving in the next two years.

After Hurricane Katrina, the homicide rate in New Orleans has climbed to one of the highest in the country – and 17 officers a month are quitting the police department.

"I don't want my kids to grow up looking at this stuff everyday," says resident Tyrone Wilson.

Despite the expected exodus, parts of the city were relishing the Mardi Gras boost in business sales.

"It was an excellent weekend," said Michael Valentino, managing partner of three French Quarter hotels. "We ran in the high 90s occupancy for Saturday, Sunday and Monday night. There is clearly more demand this year. It's feeling more like our normal Mardi Gras pressure."

The city was eager to stage it's annual pre-Lenten celebration last year to show tourists that they could return. The first Carnival since Hurricane Katrina was scaled down, only 68 flights were coming into the city, only 42 parades rolled, and there were only 600 restaurants operating. Of the 20,000 hotel rooms that were habitable last year, only 13,000 were available to visitors. The rest were taken by FEMA, volunteers and contractors.

This year there are 30,000 hotel rooms, 1,648 restaurants open, 110 flights operating, and 50 major parades, according to the New Orleans Tourism Marketing Corporation.

"The weekend was surprisingly busy," said Earl Bernhardt, co-owner of two bars and a blues club in the Quarter. "The crowd is bigger and they're spending a lot of money."

More than 95 percent of the city's total available rooms were reserved for Mardi Gras weekend, said Fred Sawyers, president of the Greater New Orleans Hotel & Lodging Association and general manager of the New Orleans Hilton. That's up from 92 percent occupancy for the first weekend of Carnival.

One of the lingering problems for restaurants and bars is the lack of employees. Since Hurricane Katrina scattered the city's residents, many places have scrambled to get workers.

Pat O'Brien's, the famous Quarter bar and patio that is home to the rum drink the Hurricane, visitors did not seem to mind the shortage, said Shelly Waguespack, vice president of administration.

"People seem to understand," she said. "It's a happy group. They aren't complaining."

Pat O'Brien's, like most of the Quarter bars, would stay open nearly all night, Waguespack said.

"We'll close about 5 a.m. and open up again about nine," she said. "Mardi Gras makes people very thirsty."

[annd2302]

I think I would rather just go to Okarche Oklahoma and have a good ole Ice Cold BEER.
Okarche has the oldest bar in Oklahoma, Eischens Bar and Fried Chicken.

[usmcmike44]

Well it's only a matter of time. Ray Nagin will get his "Chocolate City." It will be full of crime and most likely water too! Another huricane will most certainly do this town in! I lived there myself for 10 years and enjoyed it. But I'm so happy to be 600+ miles away from it now. The people of NOLA and LA need to wake up and smell the coffee! WIth Nagin and that Gov they have, they'll never make it!

[lealoff]

Sad to see that some commenters want to kick New Orleans while it is down. The city is unique and wonderful despite its flaws. I can well understand that people may feel the need to leave post-Katrina. Living there now is extremely challenging, but please have some respect for the people who are remaining and trying to rebuild. They have precious little support as it is!

[jbhackk]

I've been to New Orleans four times since Katrina, and each time I'm pleasantly surprised by how gracious and positive its residents are. Before anyone writes off the city, look at some of the world's great tragedies such as San Francisco's earthquake and the devastating fires of London and Chicago. It could be argued that these cities emerged from their disasters more vibrant and stronger than before (certainly from an architectural standpoint). New Orleans shouldn't lament the past, but see this as an opportunity to redefine itself as not just an incredible place to visit %u2013 but live as well.