The sight of water swishing around craggy rocks and wooden fishing boats in Vernazza's tiny harbor is postcard perfect. The village is just one of several in Italy's Cinque Terre region that are strung along the coastline like gems on a necklace.

In Vernazza, vineyards perch on the cliffs above and the harbor is rimmed with pastel-colored homes and restaurants - a perfect setting for a romantic getaway. The problem is, fewer are deciding to get away to this picturesque region as the world stumbles through the global economic crisis.

"Vernazza and tourism are like husband and wife," said Edoardo Basso, restaurateur at the Taverna del Capitano. "And if the wife leaves? Now is a problem in the house, there's a crisis."

Basso estimates that his restaurant's business is down 25 percent. Those who do come to gobble up local delicacies, like twisted pasta with basil, are skipping that second course and after-dinner drink.

Fewer euros

As the financial downturn continues to drag on the global economy and people's pocketbooks, more Europeans and others are choosing their backyard hammock or the local beach as holiday destinations.

Those decisions are exacerbating an already worrisome situation for Italy, where tourism is the number-one industry. Spending in early 2009 has declined nearly nine percent from the previous year.

The fall-off has been even worse for Sonia D'ambra, owner of a gelateria, or ice-cream shop. She watched business in March plummet by 50 percent over the previous year, although she thinks the weather and a late Easter holiday contributed to the decline.

She is trying to remain optimistic about the rest of the summer season, although she might find herself praying to the statue of the Virgin Mary next to the gelateria's door for a little outside help.

"A family with little kids will buy a cone for them, at least I hope," she said. "They won't buy souvenir tee-shirts but a gelato, a pizza, one has to eat. I'm crossing my fingers!"

Two Japanese tourists come into her shop and she takes their order - only one cone for the two of them.

"Of course, before, they'd have bought two cones," she said. "Now they're careful about what they spend their money on and how much they spend."

American numbers down

Tourists who come to the region still spend their time hiking the cliffside paths linking the five villages and they often rent apartments by the week. But apartment owners say visitors are shortening their stays. Most now hail from Europe whereas Americans used to be the majority.

Americans are especially feeling the pinch of the financial crisis and a weak dollar. Even though, those who are traveling, like Vicory and Doug Barton from Seattle, Washington, are getting a little more bang for their buck over last year. Hotel prices have fallen by as much as a third.

"It seemed like such a bargain," said Vicory. "Airfare-wise, it was less than half."

But, she added, people back home are thinking hard about finances and to many, European vacations seem like a luxury they can't afford. In fact, people are putting off buying a lot of things, like new cars, flat-screen televisions or new furniture.

"Your furniture can last a while longer but maybe our legs won't, so we better go hike this year," she said.

Survival strategy

To offset the drop-off in numbers, merchants are keeping their prices competitive and for many, they hope the bargains attract more people like the Bartons. Andrea Leonardino of the Baia Saracena pizza parlor has cut his prices and is keeping his head up, trying not to succumb to fear as the news of economic gloom continues its steady beat.

"I am not so afraid, we have to wait," he said, slicing into a cheese pizza the size of a manhole cover. "If people talk all the time about the crisis, crisis, crisis. I think the crisis is big but it's bigger in our minds."

He and others say they are following a simple strategy: smile – and make everyone feel it was worthwhile to leave home for the Cinque Terre, even during a financial crisis.

"They like to hear, 'Oh ciao, ciao bella!'" he said. "It's like a joke but it's true."

Author: Nancy Greenleese (jam)
Editor: Kyle James