Despite a dearth of employees in the tourism industry this past summer, Virginia Beach hotels thrived. Restaurants, however, struggled with skeleton crews and couldn’t quite hit their stride.

Sales at Tautog’s Restaurant, in the heart of the resort area, slid by 50% compared to the pre-pandemic summer of 2019, owner Bill Gambrell told members of the Resort Advisory Commission Thursday.

“We probably could have done better if we had more employees,” he said.

The season overall started strong — with no restrictions on gatherings and vaccines widely available. Demand was high as travelers emerged from the confines of COVID, eager for a vacation.

Summer occupancy rates slightly surpassed 2019′s, and revenue per available room was up 20%, at $191.64, compared to two years ago, according to Smith Travel Research, the firm regularly cited by the city for its hotel market data.

“We had a very strong summer,” said Lauren Townsend, spokesperson for the Virginia Beach Convention & Visitors Bureau, in an interview last week. “Everyone did a great job; the front line employees have really been the ones to bear the brunt of this difficult time.”

Businesses struggled to find enough workers to fill shifts, which took its toll on those who did show up.

International students, many of whom work in hotels during the day and restaurants at night, couldn’t travel due to pandemic restrictions. Some of the local workforce opted to take the state’s extended unemployment benefits rather than go back to work.

For some restaurants, that meant limiting hours and days, which dug into the bottom line.

“It’s not all a rosy scenario,” Gambrell said.

The cost of goods went up. Some restaurateurs had to pay overtime and raise wages to retain employees.

“We’re all losing,” said BJ Baumann, president of the Virginia Beach Restaurant Association and owner of Rockafeller’s Restaurant on Rudee Inlet, at the commission meeting. “Restaurants in general have not seen those kinds of revenue increases, (as hotels did) and they’re still fighting a very hard battle.”

At the Oceanfront, the city ramped up entertainment, which helped draw day-trippers for concerts.

“We did get some traffic from those shows,” said George Kotarides, president of the Atlantic Avenue Association and owner of Dough Boy’s Pizza. His restaurants were understaffed by 35%, he said.

At Town Center, eight miles from the Oceanfront, businesses are reporting high marks.

The Westin hotel had 35-40% higher occupancy than in 2020, according to General Manager Christine Geist.

“It was much needed after a very slow 15 months,” she said.

Some of that trickled down to the Town Center shops. Promoters marketed the district in hotels and rental houses this year to get more foot traffic, said Katie Caraviello, business developer for Divaris Real Estate.

Sales this summer were up more than 30% from last year at the Royal Chocolate shop on Central Park Avenue in Town Center. Co-owner Terry Restin said she’s seeing more customers from out of town and began offering “to go” chocolate kits to draw more people.

But the Westin, like many other hotels, is not quite back to normal occupancy levels, Geist said. That’s partly because ballrooms and meeting spaces are sitting empty.

“Corporate travel is nonexistent,” said John Zirkle, president of the Virginia Beach Hotel Association.

Large-scale events and conventions haven’t bounced back, and it doesn’t look like the situation will improve this fall.

“This recent COVID swell has created uncertainty in that market,” Taylor Adams, the city’s director of economic development, told the Resort Advisory Commission.

However, not all is lost with indoor venues. The Virginia Museum of Contemporary Art’s leadership painted a profitable picture with attendance-breaking records this summer.

Several factors helped, including a new marketing strategy and compelling content in its popular “Summer of Women” exhibit. Combined with pent-up demand, the museum attracted an average of 500 visitors per week.

“We’ve been having some really great successes,” said Brad Tuggle, the museum’s director of audience development. “We hope this is the beginning of a trend.”

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com