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Durango lodgers tax declines in August

Timing of Labor Day, rather than Gold King spill, could be to blame
Pedestrians are reflected in the windows of the Durango Welcome Center along Main Avenue. Lodgers tax collections for August declined 5 percent compared to August 2014, reflecting perhaps a drop in tourism or a function of the timing of Labor Day.

Revenue from the city’s lodgers tax declined in August, which could reflect cancellations from the Gold King Mine blowout and the timing of Labor Day.

Lodgers tax collections declined about 5 percent, from about $130,700 collected in August 2014 to $123,700 collected in the wake of the spill, according to city reports.

However, Labor Day weekend falling exclusively in September instead of partially in August could have played more of a role than the mine blowout triggered on Aug. 5 by the Environmental Protection Agency, said Tim Walsworth, executive director of the Business Improvement District.

His organization did not hear about mass cancellations from hotels or big concerns from merchants after the spill.

“To me, the decrease in lodgers tax and the small increase in sales tax is primarily due to how Labor Day weekend fell,” he said.

The city sales-tax collections increased by 1.4 percent in August, up to about $1.3 million from $1.28 million in August 2014. These numbers exclude sales taxes dedicated to the Parks and Recreation Department.

In comparison, June and July saw sales-tax revenue increases above 6 percent.

At the Quality Inn in Durango, a few people left early because of the mine spill, but not many, said general manager Brooke Henderson.

“I really don’t think it affected the majority of hotels,” she said.

The end of August always tends to be slower than June and July because schools are starting again, but the tourism season generally lasts through mid-October, Henderson said. “I think the season has finished up pretty strong.”

mshinn@durangoherald.com



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