Tourism is one of the most powerful drivers of Colorado’s economy, creating jobs faster than any other industry. A growing number of visitors continue to spend billions in the state each year, according to the state’s economic development office. This fuels business income and tax revenues that support everything from schools to transportation to municipal services.
But such economic growth isn’t all organic. The state has spent decades dedicating resources to stewardship, said Jill Corbin, deputy director of destination stewardship at the Colorado Tourism Office.
“It’s tried and true that people really care about our lands, cultures and communities. So it was our job as the tourism office to understand how the tourism industry, and the CTO specifically, could wear the hats of being stewards,” she said.
According to reports released in 2022 by Dean Runyan Associates and Longwoods International, there were an estimated 90 million visitors to the state, a 6.5% increase over 2021. Those visitors spent $27.7 billion in 2022, up from $22.1 billion in 2021.
Visitors spread out across the state, taking in Colorado’s urban and rural attractions. Total spending on day trips was up 23% over 2021 and spending on overnight trips was up 24%. Transportation was second after accommodation for spending, and food and beverage came in a close third (with recreation close behind them). And while shopping was the most popular activity (“Why, in Colorado?” one might ask) sightseeing, hiking and backpacking, visiting landmarks or historic sites, hitting up national parks and checking out wildlife all also made the top 10.
“Those findings showed an exciting opportunity for the tourism industry, and how we think of stewards,” Corbin said.
Highlighting emerging markets
The new trend in destination stewardship is for places to market and/or manage a destination based on whether it’s “mature” or “emerging.” Colorado has both — Vail may be considered mature, because it has attracted visitors for so long, while San Luis may be considered “emerging,” because word seems to just be getting out about how cool it is.
Corbin says managing for both “is complex. There’s no golden ticket for what it looks like. But the neat thing about working in Colorado and being in Colorado is that there are so many incredible leaders in this space that are out there doing a lot of fantastic work.”
Drawing on that deep well of knowledge, the office has created a destination stewardship strategic planning initiative, which began last May and continues through June. It’s “in collaboration and cooperation with industry thought leaders and stakeholders, state and federal agencies, communities and residents,” Corbin said. The idea was to pair locals in various communities with partners across the state to create the best group to advise the office in “elevating responsible travel and sustainability, championing resilient destinations and advancing inclusiveness and collaboration.”
These leaders form a 27-member council that Adam Ducharme, Leadville-Twin Lakes’ first tourism director, is a part of. Ducharme has seen tourism in his region explode since 2017, with lodging tax revenue growing from $75,000 that year to close to $400,000 in 2021, he said. And while residents there love that people “discovered” the area, they worry all those visitors are loving it to death.
Ducharme said it’s critical that Leadville comes to the table in the strategic planning discussions, for a number of reasons, not the least of which is that Leadville’s Latino community makes up 40% of the population with their own thriving economy. Leadville is “incredibly unique,” he added, with its Skijoring and Crystal Carnival Weekend, the many Leadville 100 races, its proximity to fourteeners and other reasons. “But if we don’t protect it” from the crush of visitors, he said, “there will be nothing to promote.”
Tourism directors from La Junta to Boulder have stepped up to help, contributing to the tourism office’s threefold goal of creating a tourism-related glossary of terms, completing the statewide strategic plan and building eight regional destination stewardship strategic plans.
Corbin says a glossary of terms is important “so we’re all speaking the same language and on the same page.” The work is ongoing and the tourism office invites collaboration from communities.
Next up: Statewide visits
During the second phase of outreach — happening now — facilitators within the eight Colorado regions are traveling the state “to get input on the future of tourism in Colorado from new voices, have more focused conversations with targeted groups, and truly meet our partners where they need to be met,” the tourism office says.
The consultations will include a presentation by members of the tourism office and the destination stewardship planning team, followed by discussion of strategies and priorities specific to each region.
The first one, on March 27, is titled “Canyons and Plains” and will be Las Animas. “Pioneering Plains,” in Yuma, is April 2. “Rockies Playground,” in Avon, is April 3. Get the full list of meetings on OEDIT’s website. They wrap up Durango on April 26.
Reporter
This monthly rural Colorado update comes from Sun reporter Tracy Ross. Check out Tracy’s other stories here and reach out to her if you have a tip, story suggestion or comment about what’s going on outside the Denver metro area. Email Tracy at tracy@coloradosun.com
Colorado unemployment rate rises to 3.5%
The state’s unemployment rate continued to creep up in February, from 3% a year ago, according to the latest monthly federal jobs data. It remains lower than the U.S. rate of 3.9% but it’s also the highest in two years for the state.
That’s likely due to high inflation in the past couple of years alongside the Federal Reserve raising interest rates 11 times since 2022, said Ryan Gedney, senior economist at the Colorado Department of Labor and Employment, during a news conference Friday.
“And historically, (a higher interest rate) does result in an uptick in the unemployment rate because the point of doing that is to cool the economy,” Gedney said. “Now, we’re still seeing strong job growth and while the unemployment rate is ticking up slightly, it’s still historically low. But I think it’s certainly something to continue to monitor. I wouldn’t be surprised if, by the end of the year, the state’s unemployment rate is approaching 4%.”
The Federal Reserve left interest rates unchanged this week but still intends to cut them up to three times this year.
Colorado’s 3.5% unemployment rate is still relatively low, at least historically, Gedney said. Since 1976, Colorado’s monthly unemployment rate has been higher than 3.5% about 78% percent of the time, he said.
But also important to note: The monthly data will get revised months later, as employers complete surveys to better document how many people in Colorado are working or not. Low response rates post pandemic can create volatile data, which resulted in revising much of 2023’s federal data for Colorado earlier this month.
What also showed up in the preliminary monthly job data is that Colorado’s labor force shrunk by about 1,800 people in February from January. That’s a count of how many Coloradans 16 and older are working or looking for work. We could be getting back to the pre-pandemic trend that showed Colorado’s workforce growing older with more folks retiring. A slowdown in births also means the state continues to rely on migration to reach higher growth rates.
“We’ve seen this weakness or flatness over the past year. It may just be that the labor force has kind of reached its max point,” Gedney said.
That said, the state’s labor force participation rate of 68.1% in February, is still near its highest ever. Coloradans ages 25 to 54 are also more engaged with 87.2% in the workforce in the past year, compared with 85.2% in 2010. In the past decade, only older workers between 55 to 64 have a lower participation rate this year compared with 2014.
“That’s nearly the highest we’ve ever seen in the state,” he said. “I think any flattening or declines in the labor force may be just due to the older population of 55-plus, particularly if you’re 65-plus … who have lower participation rates than the population as a whole anyways.”
What else changed in February:
➔ Note: Farewell to Ryan Gedney. The longtime state labor department economist said he’s leaving the agency, hosting his last news conference Friday. The department is also ending the monthly updates. We appreciated his answers to all of our — and readers’ — questions and do hope that the Department of Labor keeps communication open with the public by sharing a deeper analysis of what the latest economic reports mean for Coloradans.
Business/Technology Reporter
Help grow What’s Working Forward to a friend or get your own copy!
Sun economy stories you may have missed
➔ Colorado panel finalizes budget plan that boosts K-12, higher education and health care. Here’s what’s in it. Facing a $170 million shortfall at the start of the week, lawmakers on the Joint Budget Committee slashed spending and dipped heavily into various state cash funds to balance the budget. >> Read story
➔ Outdoor gear sales dropped in 2023, leaving mountain retailers struggling with high rents, high taxes and too few workers. Overall sales of gear and apparel dropped 3% last year. Independent stores were hit much harder as core outdoor consumers slowed their spending. >> Read story
➔ How to get solar power for your Colorado home — even if your own roof won’t work. If your roof won’t work or you live in an apartment, you can try a community option instead, experts say. >> Read story
➔ Studies show Colorado property taxes are “extremely low.” So why do they feel so high? The disconnect has put Colorado policymakers in a bind as they try to come up with promised reforms to the state’s property tax system. >> Read story
➔ Some young people have become Colorado book collectors without realizing it. Here’s their chance to win $1,000. Contestants in the Kirkpatrick Prize for Colorado often aren’t aware they’ve slipped into collecting. Who knows, even you could be a collector. >> Read story
➔ A Western Slope program is helping older Coloradans maintain independence. National program known as PACE gives Medicaid-eligible seniors an alternative to nursing homes. >> Read story
Other working bits
➔ $4,000 signing bonus to operate a bus. The Regional Transportation District is hosting a job fair Thursday. The Denver-area bus system has struggled to hire enough staff in recent years and has long offered incentives. This time, RTD is offering a $4,000 signing bonus to those who are hired to become a bus operator. That includes paid training and getting a commercial driver license. Pay starts at $25.96 an hour. The RTD job fair is at the Crowne Plaza Denver Airport Convention Center from 9 a.m. to 3 p.m. Thursday. >> Details
➔ Airbnb remits $94 million in taxes to Colorado. Short-term rental giant Airbnb said it remitted $94 million in tourism to the state of Colorado on behalf of its hosts. That ranked the state as Airbnb’s seventh largest amount of taxes remitted to states in 2023. To date, the company said it has remitted $355 million in Colorado. That hasn’t done much to ease the housing crisis in Colorado’s mountain towns where the lack of adequate worker housing is blamed on rentals being converted to short-term housing. Lawmakers are still considering bills to tax short-term rental owners at a higher rate.
➔ U.S. debuts resource for workers with disabilities. The U.S. Department of Labor put together a guide to help people with disabilities better integrate into all sorts of jobs. Called the Competitive Integrated Employment Transformation Hub, the text-heavy site provides access to funding, policy information plus evidence-based best practices for workers, their families, employers, employment services and state agencies. >> View the Hub
Thanks for sticking with me for this week’s report. Remember to check out The Sun’s daily coverage online. As always, share your 2 cents on how the economy is keeping you down or helping you up at cosun.co/heyww. ~ tamara
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