Every year, The New York Times sends a writer to Nantucket island, off the coast of Massachusetts, to write some kind of trend story.  Sometimes it’s been about real estate, other times simply a travel piece.  This year, however, it was to look at how the recession has damaged many businesses on the island, which are open seasonally from around April to October.  During this period, owners depend on tourist traffic to make a year’s living.

To me, Nantucket and similar summer vacation destinations are plum “targets” for the recession.  Many wealthy i-bankers and hedge funders purchased homes on the island during boom times.  When things started going south in summer 2007, the real estate market inverted, and a strong seller’s market became a buyer’s.  One summer resident profiled in the piece is selling his home at an auction for the highest price, a risky move and an insight into the slumping market.

Restaurants, stores, and specialty shops, which huddle together in “town” on the island, are seeing visitors spending less and staying in for meals, or opting out of dessert and cocktails.

While small American towns on the mainland suffer, it’s these seasonal destinations that suffer even more.  The article itself is a tad sensationalist and a little “sky is falling,” but disheartening nonetheless.

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