Local business owners are working harder than ever as the effects of the nationwide economic slowdown are starting to be felt in St. Helena.

Most business owners report that business is down, and many said they’re having to rely more and more on special events and promotions.

“Everybody feels like we’re working twice as hard to make the same amount that we did last year,” said St. Helena Chamber of Commerce CEO Nancy Levenberg.

Wineries are reporting that in-the-door “visitorship” is down — and as the wine industry goes, so go other local businesses, said Levenberg. Downtown shops, which many people think of as the mainstay of St. Helena’s economy, are actually dependent on how the wine industry at large is faring.

And although the typical line on the wine industry has consumers trading down to less expensive brands, Hall Wines is reporting strong sales of their higher-end wine brands, said Levenberg. “The high end of the market can afford to buy whatever they want to buy; they always have,” she said.

Remi Cohen, vice president of operations at Merryvale Vineyards, said that while foot traffic in the tasting room is down 20 to 30 percent, sales per visitor are actually rising, so profits aren’t suffering so much as one might think.

With a gloomy outlook for next year’s economy, Cohen said the winery’s working harder than ever on creative events and promotions to keep business strong until the economy recovers.

Kellie Magna from Tra Vigne said business is strong, thanks to a boom in special events like weddings. Less foot traffic is translating into 10 to 15 percent less revenue coming in from the main dining room, but private dining and special events are up by about 40 percent.

“Corporate business is steady throughout the week. We have events every single day this month,” said Magna, adding that she’s still concerned about what’s going to happen in January and February.

Many downtown businesses are not so lucky: Several reported being down 20 to 30 percent.

Wayne Armstrong and Marcus Robbins, the owners of Patina, Palladium and Pennyweight, said in a statement that they’re in greater need than ever of local customers.

“The downtown merchant community is very supportive and generous when it comes to giving donations to all of the many local fundraising requests they receive, and in turn they need that same kind of support given to them.”

Could impact city budget

The tough times for businesses could hurt the city’s bottom line: In the last fiscal year sales tax and the transient occupancy taxes that are generated by hotels together accounted for more than 42 percent of general fund revenues.

Finance Director Karen Scalabrini said that based on early sales tax receipts, the city should be OK. She said she built very conservative estimates into this year’s budget, in anticipation of an economic downturn.

If tax revenues do come in lower than expected, the difference could be covered by midyear department cuts or shifts from reserves, which this year equal more than 37 percent of general fund expenditures. But Scalabrini said that outcome is highly unlikely.

While retail businesses report that sales are down, hotels aren’t feeling the pinch quite as much. The economic slowdown might even have a silver lining for them.

According to Harvest Inn General Manager Jack Burkam, many people are passing up big ticket vacation spots like Paris and the Pacific Rim and settling on closer-to-home destinations like St. Helena. But at the same time, Bay Area residents who used to stay overnight in the Valley are now opting for day trips.

El Bonita Motel General Manager Pierrette Therene said business has slowed down a little, a result not only of the economic downturn, but also the increased competition from new hotels in Napa. People planning overnight visits are shopping around a lot more than they did a few years ago, she said.

On the other hand, a strong euro and a weak dollar are resulting in more visitors from Europe, said Therene.

Other hotel proprietors, like Yvonne Alumbaugh of the Eagle & Rose Hotel, said that, like other St. Helena business owners, they’re putting an increased focus on promotions such as discounted extended stays.

Wait and see

Some business owners are taking a “wait and see” attitude. Jay Smith of Sunshine Foods said that while there’s been a tendency for customers to shift to less expensive products, “there’s been nothing really dramatic. But the economy is rocky for sure in California, and it’s going to get a little tougher before it gets better, I’m afraid.”

With a late harvest just wrapping up, some businesses whose fortunes are tied directly to the wine industry say it’s difficult to compare this year with previous years. But Mark Terrell of Lampson Tractor agreed that “everybody’s working harder than they have in the past.”

So have a lot of Main Street merchants, such as Margaret Word of On the Vine. “We’re using promotions, trunk shows and events to draw people into the shop,” she said.

David Clark from David’s Jewelers said that even though business is down, it’s important not to make drastic changes to be competitive. “For instance, our quality; we’ve stuck with that, and just because things get slower we’re not about to all of a sudden become a cut-rate, low-quality mass production shop,” he said.

Wherever people are spending their money, it isn’t at nurseries.

“We’re off 20 to 25 percent,” said Kevin Twohey of Whiting Nursery. “I believe nobody has any income to spend on anything.”

Auto sales hit hard

Automotive sales are among the hardest hit. “We’re probably off this month by about 50 percent,” said Jeff Epps of Epps Chevrolet, adding that he’s putting more and more focus on Internet sales.

The people who are passing up expensive new cars seem to be going for cheaper used cars priced around $10,000-$12,000. Since others are just getting their old cars fixed, Epps said his service and parts department has remained strong.

Zumwalt Ford’s Scott Zumwalt also said business is down, but said a strong local customer base is helping his dealership weather the storm. Like Epps, he reported that used cars and parts and service are faring much better than new car sales.