Our View: March proves how much guests matter
Saturday, May 14, 2011
Editorial Board, May 11 through Sept. 21, 2011
- Scott Stanford, general manager
- Brent Boyer, editor
- Tom Ross, reporter
- Laura Schmidt, community representative
- Jim Miller, community representative
Contact the editorial board at 970-871-4221 or editor@SteamboatToday.com. Would you like to be a member of the board? Fill out a letter of interest now.
Steamboat Springs — March sales tax receipts underscore just how important tourism remains to our economy, especially now.
City of Steamboat Springs sales tax revenue was $2.11 million in March — an 8.6 percent increase from the $1.94 million in revenue in March 2010. Excluding the month of December, it was the best sales tax month for the city since March 2008, and it came after January and February were down slightly.
The driving force behind those positive results? Visitors, visitors and more visitors.
Sales tax revenues from the lodging industry increased more than 22 percent in March compared with March 2010, and accommodations tax revenues increased more than 21 percent. Also, tax revenues from businesses at the base of Steamboat Ski Area increased more than 21 percent in March.
Snow is certainly a factor in the March numbers — a ski season with 433 inches always helps. But the lodging industry, which has been discounting rates throughout the dismal economy to attract more visitors, deserves most of the credit. Without the 22 percent bump in lodging, sales tax revenues would have been flat or down to March 2010.
The point to take from the data is that attracting visitors to Steamboat can plug a lot of the city’s economic holes. Holes like unemployment, which was higher in March 2011 (8.3 percent) than in March 2010 (7.6 percent). Holes like gas prices, which approached record levels in March. Holes like home values, which continue to slide, and home foreclosures, which are on a record-setting pace through the first quarter of the year.
Against that backdrop, tourism becomes all the more important. We were encouraged that, in the discussion of a possible $11 million grant for cycling improvements, several Steamboat Springs City Council members focused the discussion on improvements and amenities designed specifically to attract overnight guests.
Heading into summer, we have a number of opportunities to promote Steamboat Springs to tourists through longtime staples such as Strings Music Festival, Steamboat Springs Pro Rodeo Series, Triple Crown and Free Summer Concert Series as well as new events such as the USA Pro Cycling Challenge Millennium Promise. We remain a destination for camping, fishing, hiking, golfing, kayaking and biking as well as attractions such as Fish Creek Falls, Steamboat Lake and the Strawberry Park Hot Springs.
We all have a role in this process. Our job is to live up to the image of Western hospitality that has served us so well. Each of us can help determine the kind of experience guests have while they are here and influence their decisions to return.
As March showed us, it’s an investment that is definitely worth the effort.
Comments
Scott Wedel 2 years ago
Scott Ford, Do you ever wonder if anyone ever learns anything?
How many times in how many different places have you said that sales tax revenues only reflects part of the local economy? But yet again the newspaper argues that sales tax revenues is the solution to the local economy.
A theory which is undercut by their own data because a significant increase in this year's sales tax revenues had minimal impact upon employment or housing prices.
Thus, as March showed us, pursuing sales tax revenues has minimal impact upon this area's overall economy.
ybul 2 years ago
I would agree with Scott that while the increased sales tax revenues are great, it really did not do much for unemployment or the strength of the economy. Yes we need to maintain the tourism base, but in focusing on this strength you are fostering an economy simply based on Tourism. Might be nice to spend as much focus on strengthening other factors which might lead to a more balanced economy.
Yep we need to maintain, but what is the desired outcome from all the effort put forth of putting people in rooms? Affordable housing is always a stated goal, how is that attained - by creating better paying jobs (tourism related jobs typically do not pay that well - yep does bring in revenue but does it ultimately get to the broader vision of what people want to see in the community)?
Goes back to the statement that Scott Ford said months ago that it seems as though we are like in the Alice in wonderland story where we are just on the road to somewhere but with no real aim (higher sales tax revenues should not be the only mission, low unemployment - a community where people need less assistance (handouts) - a community where people are generally friendly to all including those that come in from out of town (which if there is an inability of those serving those who come here to live a desirable life then they may not be so welcoming) - a community where people who work here can afford to live here vis a vie working towards creating jobs that pay well.
Scott Ford 2 years ago
Wow there are so many points raised in this editorial it is challenge to find a starting point. Without question, our visitors play a very important role in our local economy. I fully understand the importance of sales tax revenues - and why it is so easy to focus on these revenues as the sole measurement of the economy because of the immediacy of the data.
In reviewing the March 2011, lodging occupancy reports there was an increase in the number of visitors, but likely not enough to account for all the lodging sales tax increases in March. A major contribution to the increase in sales tax revenue is that the lodging properties simply were able to charge more due to the demand of folks wanting to enjoy some of the best snow in the Rockies. Great snow conditions, the ability to get here relatively easily and have a place to stay when they arrived were the cause and effect elements that resulted in sales tax revenue increases. Yea, it is wonderful when things come together. If the snow conditions in March would have been marginal I think we all agree that the outcome would have been very different.
The summer visitor needs to be split into two distinct categories. The visitor associated with Triple Crown or the Mountain Soccer Tournament are essentially "conferences" The dates have been set at least a year in advanced and those that are planning to come to the "conference" come regardless of the weather. I would throw into this mix of "conference" type business special events such as the Steamboat Marathon, Rainbow Weekend, and hopefully the growing number of bike events. This is smart business because it is not highly weather dependent.
The other category of visitor is the short drive group and is very weather dependent. With almost 20 years of lodging occupancy data - the greatest single predictor of visitors coming to the area is not based entirely on what events are occurring that weekend or all the things there are to do once a visitor arrives. The greatest predictor is how HOT it gets in the Front Range communities. The best of all worlds is to have the week begin in the Denver metro area with temperatures in the mid to high 90's stretching into the weekend. To escape the heat of the city they look to the mountains.
Our best hope for a successful summer visitor season with this second category of visitor is a summer where it is unseasonably HOT in the Front Range metro area week after week. Similar to having great snow conditions having a lot of things to do and places to stay positions Steamboat Springs in a very competitive position to attract our share of this visitor. Yea - it is wonderful when things come together.
We have to keep in perspective when it comes to attracting visitors to the area we are at the mercy of the weather. Even if we do everything right and the weather does not cooperate the results will be dismal.
Scott Ford 2 years ago
Although I do not know all the details associated with this $11 million grant reference in the editorial I know that it is wrapped around state sales tax increment financing. Essentially, to the degree "new" out-of-state visitors can be attracted to the area, the state of Colorado will share a portion of the increase in their sales tax revenues with the City of Steamboat Springs. The state of Colorado will share enough to secure up to $11 million in bond funding.
This entire grant and the state's incremental sales tax financing hinges on whether doing all the stuff that is proposed with the money will result in positioning Steamboat Springs and the immediate surrounding communities as a destination biking location for "new" out of state visitors. Only increases in "new" out-of-state visitors count in securing this grant. Is it possible? Maybe. It is worth the effort to build a compelling case in the application? Again maybe.
There is some financial risk associated with this grant application we all need to be aware of. It is my understanding that the City of Steamboat Springs would be the legal entity securing the bond funding. The state would share a portion of their sales tax revenue beyond a predetermined level with the city to service the debt up to $11 million. If the increase in state sales tax revenues did not occur as projected, and there was insufficient revenue from the state's incremental share - the city would be responsible for meeting the bond obligations. (Those more familiar with the details of this grant please correct me if my understanding of the details are wrong.)
We simply need to approach this grant application with our collective community eyes wide open and not be seduced by the dollar amount. Even if the incremental share from the state's sales tax collections are below what is needed to service the bond - the biking amenity enhancements may be sufficient to attract enough "in"-state visitors to the area. Although this does not float the state's Boat it could float our local Boat enough to service the debt.
Weighing the risk and the benefits associated with securing this funding will be no easy task but it will be a necessary one. I challenge the editorial board to carefully explore the elements and associated risks of this grant and render a thoughtful opinion.
Scott Wedel 2 years ago
Scott F. When did you become a revolutionary intending to blow up the current system of government?
You said: "We simply need to approach this grant application with our collective community eyes wide open and not be seduced by the dollar amount."
Since when have city of SS decisions been made on that basis?
Scott Ford 2 years ago
Hi Scott W - As you well know I have a hopelessly optimistic outlook on most things. This outlook applies to our public decision making process. We have gone a wee-bit "bike happy" in this community and this enthusiasm and perceived overwhelming public support can easily lead to such a willingness to say YES to anything that arrives on two wheels.
I am hopeful that we can approach this grant opportunity with a healthy and honest degree of skepticism. This does not mean that we should say, "no thank-you" to this grant opportunity - it just means that we better have an number verifiable of reasons to say, yes.
1999 2 years ago
scott ford...your wording is right on concerning "the preceived overwhelming public support" of the Bike town USA initiative.
the fact is....some city and county employes are involved in and pushing it. even getting paid to work on BTUSA on our tax dollars
we really haven't had the opportunity to object. It continues forward regardless of anyones opinions or questions.
I invite EVERYONE to step up and find out what BTUSA really means. it's really not as pretty as they would like you to believe.
another fact.... there are many many many people against this initiative. it's not as popular as the pushers would have you believe.
Zac Brennan 2 years ago
I nominate both Scotts... F & W to jointly write a column for the Pilot/Today paper. You both could plan your week more efficiently, then.
Scott Wedel 2 years ago
Bikes are generally popular, but spending money on "bike friendly" tends to be much less popular in practice. Government tends to focus on expensive bike paths for the occasional family outing which tend to be scenic, curvy and go to nowhere. Meanwhile, the cyclists that ride on a daily basis for commuting and errands are much more interested in direct paths that are safe at commuting speed (15-20 mph).
So governments tend to build expensive paths only to find that most cyclists are still riding on the shoulder of roads.
What is troubling about "Bike Town USA" is that it is more of a purchased marketing label than a prize selected by an impartial committee. So pursuing Bike Town USA is not really about making cycling easier and safer. This area has enough off street bike/foot paths for family outings. What this area needs is a way for cyclists to get across downtown with splitting the narrow gap between parked cars and traffic along Lincoln and without having to stop at so many stop signs along Oak St. Probably something like May-Nov removing 4 way stop signs along Oak and blocking through traffic (but not bikes or peds) at the county building would work. So bikes could cruise along Oak St and cars couldn't use Oak instead of Lincoln. And City hopefully has enough of an easement through Riverwalk that they could run a bike path from 5th to 3rd so bikes could avoid Lincoln Ave parking and traffic.
1999 2 years ago
instead they want to build showers at the rodeo grounds.
and you are correct scott...they mearly want to buy a brand ...it has nothing at all to do with building a cycling community...which incidently ...we already have.
cindy constantine 2 years ago
On the sales tax discussion I don't believe a "strong" March is indicative of a trend. Because of when Easter fell this year, April's sales tax numbers will most likely be much lower than April, 2010 as a percentage. March 2011 possibly "stole" business from April and it would be nice to see the paper/CC not always jump to conclusions until we have a "trend" of many months.
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