TAPP warns county of tourism slowdown ahead – The Crested Butte News

South Valley hit harder this summer

By Katherine Nettles

In an update to Gunnison County commissioners this week, representatives from the Gunnison County Tourism and Prosperity Partnership (TAPP) looked back on the past winter and summer, offered their vision for what to focus on next and gave some early signs of how they hope to shape their budget in the coming months to prepare for 2025.

TAPP Executive Director John Norton began by reviewing TAPP’s four core principles: supporting and promoting summer and winter trails; developing synergies among different groups in the county; promoting efficiency, technology and learning; and embodying agility and speed in what they do.

Eyes on the competition

Norton reflected on a recent TAPP retreat in Durango where he learned about various plans for the city and nearby Purgatory ski resort to make major investments in infrastructure and amenities to boost its tourism.

“Purgatory is planning to spend $100 million over the next 10 years,” Norton said. He added that Durango Hot Springs is currently undergoing a $14 million renovation and the bike park has received a $10 million infusion to create an amphitheater for events, a campground, BMX tracks and more than 2,000 acres of mountain bike trails that allow e-bikes. He also mentioned Steamboat’s visit last year and the massive infusion of capital into the town and ski resort.

“We’re doing pretty well, but we can’t keep beating the market forever,” Norton said of Crested Butte Mountain Resort (CBMR). He lamented that he has reached out to CBMR several times to share ideas and encourage more investment in resort amenities such as new terrain, chairlifts, restaurants and base improvements, “but I can’t get anywhere.”

Andrew Sandstrom, TAPP’s chief marketing officer, said his team is looking ahead to 2024 and anticipates TAPP will face some challenges in maintaining stability in tourism and economic development. “There appears to be a slowdown on the horizon,” he said, as evidenced by the decline in skier numbers across the industry, decreased investment and the effects of the election cycle on uncertainty and advertising challenges.

“So far, we’re ahead of our competitors, but we can’t continue to count on that,” he said, echoing Norton’s concerns about the lack of significant investment in tourist attractions. “I want to reiterate the need for that investment, not only on the visitor side, but on the local side and the business side. It’s the amenities in this community that make people want to be here and work harder to build a business here, in addition to coming to visit,” he said. Acknowledging that tourism makes up the largest part of the local economy, he said it’s important for tourism to support economic development. “We also need to invest in other areas, like growing our economy beyond tourism.”

Sandstrom warned that while Local Marketing District (LMD) revenue increased 11 percent from January to July, overall visitor numbers declined. “We can’t continue to grow the LMD if we continue to see fewer visitor nights. The only reason LMD revenue is up is because of higher rates,” he said of lodging.

He said last winter started off very strong, especially in the South Valley. Then, in the summer, stays dropped by about one night on average. He added that this could be because accommodation rates have become prohibitively expensive and are encouraging shorter stays.

The other challenge Sandstrom talked about critical mass. “How do we get to a point where we’re big enough to start developing amenities that make life here easier? One of the things we’ve seen in Steamboat and Durango and talked about is mountain town living. They have a Walgreens, they have a Target. They have a dermatologist: we have to get to a critical mass to offer some of those services that make the town more attractive to visitors, businesses and residents. That’s another area we’re watching closely.”

He said Durango spans a five-county area with about 100,000 residents and they still struggle to reach critical mass for major investments.

County Commissioner Jonathan Houck compared the idea of ​​critical mass to the circular argument that more students would be recruited to Western Colorado University if Gunnison had a more vibrant nightlife. “We could have more nightlife downtown, but we need more students,” he said. “Oftentimes, this concept of critical mass sparks other discussions within communities.”

Sandstrom said the amenities we have in the Gunnison Valley, namely great trails and trail access, have helped win over a younger demographic that will stick around for years to come if their loyalty can be earned.

“We attract an audience that our competitors are looking for,” he said, describing them as “a young, dynamic group that will last long into the future” and who love mountain biking.

Sandstrom said they’ve seen tremendous growth in traffic to the TAPP website, but people aren’t spending as much time there. And searches for accommodations have increased significantly, but referrals, while also up, haven’t been as high as the traffic should indicate. “Traffic isn’t growing at the same rate. So we’re keeping an eye on that declining engagement.”

South Valley Falls

Sandstrom also cited a difference in tourism revenue between the North Valley and the South Valley, and said the closure of the Interstate 50 bridge this spring and summer had a pronounced impact on Gunnison’s tax revenue, which was down about 12 percent for the year through July. Crested Butte saw only a 1 percent decline for the same period. “We’re seeing some disparity and trying to think about how we can address that,” he said.

One solution he proposed is to continue promoting flights, which he said benefits visitors, businesses and residents. He noted that if the RTA does not provide fare guarantees to airlines, they keep more money to operate free bus services and offer more services that benefit residents.

Houck asked if the fact that Gunnison has only five main lodging establishments is a factor. “While most communities are getting nice old boutique hotels/motels, in Gunnison they’ve all become long-term rentals because of the housing crisis…is that having an impact?” he asked. “If there’s a lack of availability in Gunnison and prices have gone up, maybe people will go to Crested Butte.”

Sandstrom said several engineers and longtime workers on the bridge project helped fill Gunnison cabins this summer, but stores and restaurants saw fewer customers. “The volume of business on Main Street was more affected than the actual tax revenue on lodging. But it’s a warning sign.”

TAPP’s plan for 2025 is to promote flights, which are performing “extremely well,” with a focus on the shoulder seasons and winter; increase its focus on the South Valley and increase spending in gravel bike markets; and somehow convert campers to choose lodging during the busiest four to six weeks of summer.

Norton commented that the North Valley’s transition to designated camping without a reservation system is leading to people camping illegally and causing damage to resources. “There is also the possibility of creating commercial campgrounds,” Sandstrom said.

A fortuitous event is happening this week: From September 25-28, Crested Butte is hosting the Colorado Governor’s Conference on Tourism. The event is hosted by the Colorado Tourism Office, part of the Office of Economic Development and International Trade, and focuses on information sessions, trends, and networking opportunities tailored to advance tourism in Colorado. Tourism professionals from around the world are attending the conference, and we’d say their timing is pretty good considering the fall weather.