The forensic audit of Visit Durango’s books showed nothing illegal, no one living extravagantly or pocketing any cash, only incidents of seemingly questionable judgment (Herald, Nov. 22). The audit revealed inexact and casual spending, and record-keeping that was not appropriate for any business, particularly one that operates on tax revenues.
Policies, procedures and protocols were lacking. Findings included an excessive mileage reimbursement based on travel time rather than mileage, too-generous tip amounts, $600 for a meal without noting attendees, and expenditures approved by the same person who initiated them.
The review also pointed out that about 10 of Visit Durango’s associated entities benefit from Visit Durango’s marketing, and that their possible conflicts of interest should be acknowledged. Involving those working in tourism-related business makes good sense, but transparency in their participation is imperative.
Under the umbrella of the city of Durango, where the currently independent Visit Durango may be headed after the first of the year, tighter procedures and reporting would follow. It sounds like the proposed merger, designed to establish a unified tourism and community development strategy, has been in discussion for some months.
The Herald’s editorial board supports the idea of a merger, but thinks the county should also be at the table, and the proposed plans and benefits should be shared with and vetted by the public in advance of any council approval.
The editorial board also believes the city’s allocation of lodgers tax dollars could benefit from a review and possible reallocation, similar to that county voters approved in November.
The precedent is there.
In November 2024, county voters reduced to 30% the portion of county lodgers tax that is applied to marketing annually, beginning in 2025. The remaining 70% ($636,000 in 2023) will support workforce day care and housing, likely with partnerships. The vote was strongly in favor of the new allocation.
In November 2022, the city of Durango put to a vote retaining $1.1 million in excess lodgers tax collected in 2021 and 2022. Residents strongly favored retention to be used for affordable and workforce housing programs (66%), transportation, including parking (20%), and for arts and culture projects (14%).
In April 2021, voters approved increasing the city’s lodgers tax from 2% to 5.25% establishing allocations into four categories (Herald, Nov. 9, 2022) that direct revenue today: sustainable tourism marketing (55%), city transportation (20%), local arts and culture (14%), and the remainder (11%) to be used at the council’s discretion. A notable omission is workforce child care and housing.
In 2024, Visit Durango received approximately $2.2 million in city lodgers tax revenue and $1 million from the county. Presumably, through a merger, city funds would be retained in the city budget and county funds would be added, though at a lower percentage than in the past.
For Visit Durango to be effective, it requires a tightly run and focused organization, something the city has a better chance of delivering. And while tourism is an important component of Durango’s – and La Plata County’s – economy and should be promoted, it is vital to support the workers without whom a functional service industry, upon which a tourism economy is based, would not be possible.
At the lower end of the wage scale, where many service industry jobs land, housing remains a significant challenge. Child care and health insurance expenses do, too. The county recently took important steps to prioritize the use of lodgers tax funds, though neither it nor the city should feel that with the allocated use of their lodgers’ taxes enough has been done.
