The Grand Strand's economy should stay on a strong path in the coming year as long as high gas prices fall before next year's tourist season, a local economist predicts.

Gains are expected in key segments including tourism, home sales and retail sales. But locals should keep their eyes on gas prices, which could cause some tourists to cancel trips if the price stays at nearly $2 a gallon for a prolonged period, said Al Parish of the Center for Economic Forecasting at Charleston Southern University.

Parish released the 2005 economic outlook Thursday at the 64th annual meeting of the Myrtle Beach Area Chamber of Commerce. The chamber added economic sessions to the traditional luncheon meeting this year to give the attendees more useful information.

Parish expects the price for a gallon of unleaded gas to fall to $1.60 in the next year, but unpredictable factors such as the war in Iraq and the harshness of the winter can influence the going rate.

About 92 percent of the Grand Strand's vacationers drive here. Temporary gas price increases typically haven't caused tourists to cancel, but paying more for a long time can prompt some to start cutting vacations, Parish said.

"That is going to be a problem, especially with a place like Myrtle Beach," he said. "If it stays [high] ... that might cause you to cancel your trip."

Myrtle Beach hoteliers recognize that the current price of gas may be influencing prospective vacationers decisions about travel. Some have reduced prices in an effort to sustain business at their properties. Lee Lear, whose company manages condominiums at the Myrtle Beach Resort comments, “we are aware of the inflated cost of travel and are offering savings on our accommodations that will more than compensate our guests for these increases.” Check out their specials at the Myrtle Beach Resort.