Tourism was strong in July, but the downturn in oil and gas may still be weighing on the La Plata County economy.

“Economic performance for La Plata County came roaring back in July, led by job growth, home sales and a noticeable uptick in tourism,” said Roger Zalneraitis, executive director of the La Plata County Economic Development Alliance in a statement.

General sales tax collections increased by 3.5 percent, up to $1.47 million in July, and by 5.6 percent in June, up to $1.5 million compared to the same months last year.

Lodgers tax collections also saw gains up 9 percent in June and 4 percent in July.

The Caboose Motel on North Main Avenue saw some of these crowds.

“We had a record June and we had a very busy summer at the Caboose. We were full just about every night,” Manager Weston Kulovitz said.

In May and April, Durango saw two months of declines in sales tax collections, and the difference between late spring and summer may show some bifurcation in the economy, Zalneraitis said in statement

Tourism may have bolstered the economy in the summer months, making up for declines in the oil and gas industry that may be resulting in less disposable income locally, he said.

The oil and gas industry has been facing low prices for nearly two years, but it may be beginning to stabilize, said Christi Zeller, executive director of the La Plata County Energy Council.

In August, no one was drilling new wells in the San Juan Basin, but now there are two rigs in La Plata County, she said. “We have a little activity,” she said.

The number of gas and oil permits was also up to 79 through July compared to 56 during the same period last year, according to the Alliance.

This is a good sign, but it doesn’t signal more drilling in the immediate future.

Companies can keep these permits for up to two years, with an option to renew, Zeller said.

Even though natural gas prices and production have not recovered, home sales and labor market showed improvement. There were 464 homes sold from January through July compared to 431 during the same period last year.

Even though the population is not growing very fast, both the number of people employed and looking for work increased in July compared to the same period last year.

Meaning that those who had not been part of the labor force are returning to work, Zalneraitis said.

mshinn@durangoherald.com

This story has been updated to correct the time period of homes sales.