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  Home Page » News » Lodgers Tax Takes Deep Drop In Durango

Lodgers tax takes deep drop in Durango

Declines in January, February indicate fewer visitors to area

by Chuck Slothower
Herald Staff Writer Durango has registered steep drops in lodgers tax receipts this year, indicating hotels have been seeing fewer visitors.

The declines in January and February were the first monthly drops since July 2006, and the first consecutive monthly drops in more than five years.

The city of Durango took in $35,049 in lodgers tax in January, a 15.5 percent decline from the $41,261 received in January 2008. February saw a 6.6 percent drop, from $30,623 in 2008 to $28,610 in 2009.

Lodgers tax serves as an indication of hotel stays and tourist activity.

Late winter is traditionally a slow time for local motels and hotels. August has been the highest month for lodgers tax collections, which reflect the month previous. For the last several years, Durango hotels and motels have been at essentially full capacity during the summer tourist season.

Paula Nelson, general manager of the General Palmer Hotel, said occupancy at the historic hotel was actually up this winter. Nelson predicted that foreign travelers and tourists from nearby locations will boost occupancy this summer.

"We've all been conditioned to have vacations, and I don't think the state of the economy will hinder that," she said. "I'm not put off by the forecasts of doom and gloom."

Attempts to reach other hoteliers were not successful.

Domestic tourists spent $9.8 billion in Colorado in 2007, up 10 percent from $8.9 billion in 2006, according to a sturdy commissioned by the Colorado Tourism Office. The state's share of the national tourism market grew from 2.35 percent in 2006 to 2.5 percent in 2007.

State legislators this month approved a 25 percent cut to Colorado's tourism budget, avoiding the alternative of cutting the funding entirely.

The annual University of Colorado at Boulder Business Economic Outlook forecast that the state tourism sector would cut 1,900 jobs in 2009. It also predicted that if low fuel prices continue this summer, more tourists will likely visit state and national parks.

That's good news for Durango, where Mesa Verde National Park is a major attractor of tourists, bringing in a half-million visitors each year.

Gas prices in Durango on Tuesday averaged $2.08, down $1.27 from $3.35 a year ago, according to AAA.

chuck@durangoherald.com