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Put out the welcome mat

After declines in lodgers tax, tourist industry looks for growth

After a stormy May, people in the local tourism sector are hoping for a summer with visitor spending matching or topping previous years.

“I think we’re on track for a fantastic summer. ... We’re anticipating the best July in our 22-year history,” said Alex Mickel, owner of Mild to Wild Rafting and Jeep Trail Tours.

Lodgers-tax revenue in Durango declined in April and May for the first time since 2012. In April, it declined 6.3 percent from about $48,177 to $45,308, and in May, it declined less than 1 percent from about $47,044 to $46,630.

A poor snow season could have contributed a bit to the decline, said Bob Kunkel, executive director of the Durango Area Tourism Office.

But it’s difficult to pin down the reason for the decline in lodgers taxes. At Purgatory, the snowfall was well below normal for the season, and the visitation was down slightly, said Kim Oyler, a spokeswoman for the resort.

But the resort does not usually stay open past the first week in April, and mostly locals fill the slopes during that month, she said.

After the dip in lodgers tax, people in the tourism industry are predicting gains.

With low gas prices and a strong economy, Kunkel expects to see lodgers-tax revenue end the year with double-digit percentage gains compared with last year, and he would like to see more investment in marketing to ensure growth.

“You can’t just sort of be complacent and rest on (your) laurels,” Kunkel said.

The tourism office plans to invest about $30,000 extra this year in a marketing campaign to bring in more visitors from New Mexico, west Texas and southern Arizona at the end of the summer, he said.

The office is also looking ahead to next year with an eye to expand its marketing reach outside of the Southwest, where it has been focused for many years.

With approval from the Durango City Council, Kunkel would like to invest $135,000 to reach people visiting by plane.

This would support the tourism industry and Durango-La Plata County Airport, Kunkel said.

“The best thing we can do to protect our service is to try to keep those flights full,” he said.

He would also like the city to invest between $25,000-$50,000 to renovate the Durango Visitor’s Center in Santa Rita Park. It has not been updated since the 1980s.

State outlook

After four years with growing tourism numbers, the state of Colorado is also looking to invest more in marketing. In 2014, the state set records for tourists, at 71.3 million visitors. They spent $18.6 billion and generated $1.1 billion in tax revenue, according to a Colorado Tourism Office statement.

The state tourism office had $17 million for marketing in the 2015 fiscal year and $19 million for the coming year, said Kirstin Graber, who is with the office.

Based on survey results, she said the office believes marijuana legalization has had a small impact or perhaps none on the state’s tourism growth.

A survey by Strategic Marketing & Research Insights showed only 16 percent of potential tourist would be more likely to visit because of legalized marijuana, but the law would make 18 percent of tourists less likely to visit.

Local attractions

Purgatory Resort and the Durango & Silverton Narrow Gauge Railroad, two of the biggest attractions in the region, have plans to change their marketing.

After Purgatory’s change in ownership, the company plans to offer passes for all resorts owned by James H. Coleman Jr. This includes Sipapu Ski and Summer Resort, south of Taos, New Mexico; Pajarito Mountain Ski Area, in Los Alamos, New Mexico; and Arizona Snowbowl in Flagstaff.

Partnering with the other resorts, Purgatory will have greater reach to bring in more people from New Mexico and Arizona, said CEO Gary Derk.

“We think that will help a lot not just for the mountain, but the town as well,” he said.

At D&SNG, management is seeing a strong summer, and it is making plans to court a younger audience that will sustain the train into the future, said Christian Robbins, marketing manager.

“The people that know and understand the train, that group is getting smaller,” he said.

The specialized trips such as the Beer Train and Blues Train are meant to appeal to a younger group, and he expects the train to offer more special events such as those in the future.

In 2016, D&SNG plans to offer packages that include a stay at the Grand Imperial Hotel in Silverton.

mshinn@durangoherald.com



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