Faltering economy may help area tourism

Faltering economy may help area tourism

Jan 5, 2002

By Jim Mimiaga
Journal Staff Writer

In the wake of the Sept. 11 attacks, people are hesitant to fly, the U.S. is at war, and economic boom of the 1990s is crashing.

But a silver lining may exist for attractions in rural, more peaceful, areas like Montezuma and La Plata counties, say state economists and local tourism officials.

Tourists will likely drive to less-crowded cities and resorts as a safety measure. And as people hit the highway instead of the stratosphere, Four Corners destinations such as Mesa Verde National Park may see a surge in popularity.

"Local tourism will become more of a factor as the airlines falter," said Richard Wobbekind, a University of Colorado economist, during a Fort Lewis College business forum Thursday.

"Colorado is considered a very safe leisure destination, and the forecast is for a big increase at state and national parks in what we see as substitution from air travel to car travel," he said.

Already lodging numbers for the county have gone up as skiers take advantage of a deal that gives them half-price lift tickets for Telluride if they stay here. Local vouchers are flying out the door, thanks in part to a good snowpack this year.

"Tourism was down across the country even before 9-11, but in October and November we have seen our lodgers-tax revenues pick up 3 percent compared to this time last year," said Lynn Dyer, tourism director for Montezuma County. December numbers are not in yet, but Dyer expects them to be strong also.

Dyer said that the Southwest has always been a ‘drive’ market, so there is hope that the region will hit the radar screen for travelers choosing a road trip over flying.

Canyons of the Ancients National Monument is being promoted more, Dyer said. The remote canyonlands will grace the cover of the local vacation guide this year, a perfect pitch for a country reeling from the terrorist attacks on the East Coast.

"The image portrays wide-open spaces and not a lot of crowds, which is what people are looking for right now — a chance to go to a rural area and regroup," Dyer said.

She added that the Anasazi Heritage Center and Lowry Ruin are becoming more popular because of the new monument.

Mesa Verde saw visitation drop from 678,000 visitors in 1991 to 656,000 visitors in 2001.

Colorado still lags behind in tourism funding, though, Dyer said. The Legislature allocated $6 million for the entire state, a figure that has been constant for the last few years since a state tourism tax was repealed.

Other facts discussed at the forum:

Profitability for ranching in the state continued to be elusive for 2001. Profits went from $1 billion in 2000 to $700,000 in 2001, a 30 percent decline, according to the Colorado Business Economic Outlook, a booklet prepared by the University of Colorado.
Colorado exports 35 percent of its products, mostly high-tech, to Europe. But that is slowing the state economy because of a strong dollar and a weak Euro.
United Airlines, a cornerstone of Denver International Airport and the state, cut daily flights from 300 to 250 after 9-11, with no plans to increase flights. The airline operates at a 60 percent load capacity, when 85 percent is the mark for financial solvency. A new United concourse was mothballed, as was a new DIA hotel and parking complexes.

Wobbekind said that business travel, the bread and butter for airlines, is "on its way to zero" as driving and teleconferencing take its place in the wake of 9-11.

Twenty-five million tourists spent $7 billion in Colorado for 2001, providing an estimated 8 percent of the state’s economy.
Skier days, which had been climbing are expected to now decline. In 2001 11.6 million people skied compared to an estimated 10.5 million for 2002.
Colorado unemployment is expected to go from 3.3 percent to 4 percent. Nationwide, unemployment is expected to climb from 4.8 percent in 2001 to 6.2 percent for 2002.