The Associated Press

LEXINGTON, Ky.- Kentucky's tourism business may be poised to rebound after a slump attributed to the Sept. 11 terrorist attacks, an economic downturn and the war with Iraq, a state official said.

Since the state began tracking total travel expenditures in Kentucky in 1980, the numbers held steady or increased every year - until 2001.

After generating $8.76 billion in 2000, the industry figure dipped to $8.7 billion in 2001. After adjusting for inflation, that was a drop of 3.1 percent.

Barbara Atwood, assistant director for marketing and advertising in the state Department of Travel, thinks the travel climate is more promising this year.

"We certainly haven't recovered to the numbers we had in 2000, but I think we'll show a slight increase when the 2002 numbers come out" next month, she said. "We're hoping that trend continues in 2003."

If spring is a harbinger of the summer travel season, there are some positive signs in Kentucky.

"We're optimistic that with the war winding down, gas prices having stabilized and hopefully some strengthening of the economy, people will feel a little better about spending the disposable income they've got," Atwood said.

Jim Carroll of the state parks system said advanced reservations through mid-July at Kentucky's 17 resort parks are solid. The busiest places, such as Lake Cumberland and Lake Barkley, are showing 80 percent to 85 percent occupancy.

"We're optimistic this will be a good summer," Carroll said.

In Lexington, the Kentucky Horse Park hopes its "All the Queen's Horses" exhibit draws out-of-state tourists.

The exhibit, featuring more than 400 works of art and artifacts from England, Scotland, Wales and Ireland, runs April 26 through Aug. 24.

"This is one of the most spectacular exhibitions anywhere in North America this year," said Lisa Jackson of the Horse Park.

Donna and Alan Matts of Oregon, Wis., were in Berea this week as part of a 10-day driving vacation. They had planned to take a cruise, but anxiety about the war changed their minds.

Belle Jackson, executive director of the Berea Tourism Commission, said Kentucky offers the things people are seeking now when they travel.

"We're a safe place, a place where people can walk the streets, see beautiful things in windows, and take something home that will make their lives richer by having a piece of art," she said.