I had never attended a meeting of the Pagosa Springs Area Tourism Board until this past Tuesday. I think they don’t get much attendance, generally, by members of the public. But on Tuesday, the Board had two members of the public present: myself and Lynne Vickerstaff.
I had, however, attended numerous meetings of the Town Tourism Committee — several years ago, when the actions of that committee were getting pretty controversial.
Over the past couple of years, the Town Tourism Committee (TTC) has morphed and expanded slightly to become the Pagosa Springs Area Tourism Board. Basically, the same committee with essentially the same mission: to promote tourism in Archuleta County.
But maybe it’s time for a real change in that mission? Before it’s too late?
The Pagosa Springs population explosion during the last decade of the 20th century was already fading into history when the Town leadership decided to place a ballot measure before the Town voters in 2006. The ballot measure asked Pagosa Springs residents to establish a Lodgers Tax — a 4.9 percent tax to be paid by anyone staying in motels or other lodging establishments within the Town limits. The money collected would be used to support the local tourism industry, we were told. We’d use the funds to develop more events, to generate additional tourism visits, we were told. We’d develop a comprehensive, centralized marketing campaign, we were told.
It would be good for business.
The local Lodgers Association — representing many of the businesses who would be responsible for collecting the tax, on top of the sales tax they already had to collect and remit — endorsed the new tax. The voters thought it was probably a good idea.
I was among the voters who thought it was probably a good idea. Little did we know.
Encouraged by Town voter approval, then-Mayor Ross Aragon and his Council created a ‘Town Tourism Committee’ to spend the money in a wise manner. After a couple of false starts, the TTC (as it became known) hired a smart and creative marketing director named Jennie Green, and set out to make Pagosa Springs into a well-recognized tourism destination, competing with other Colorado mountain resort communities like, say, Telluride and Aspen and Steamboat Springs.
Except that we would be different. We would be “Refreshingly Authentic.”
Back in 2006, the local business community as a whole — and especially, perhaps, the constuction-real estate industry — already knew the monetary value of an active tourism economy. People came to Pagosa for a week-long visit, and fell in love with the community’s refreshingly authentic culture and scenic beauty, and then returned to buy up vacant land and relatively affordable houses and condominiums, either as second homes or as retirement retreats. (It was more problematic to buy real estate in Pagosa if you were still working for a living. Jobs in a tourism economy generally don’t pay all that well.)
Our land and homes weren’t priced like Telluride or Aspen or Steamboat Springs. And we were lots closer to Texas, if you were driving.
The Tourism Board has proved to be a growth industry. The original TTC budget in 2006 showed revenues of $284,733. The Pagosa Springs Area Tourism Board projects an income of about $776,500 for 2018.
Not many Pagosa industries have tripled their income stream since 2006. But of course, we are talking here about government, which is not your typical industry.
What none of us foresaw in 2006, when we approved this new Lodgers Tax, was the impact of steadily-increasing tourism on the Archuleta County housing market. We now find ourselves in the midst of a serious housing crisis, where many working class families are paying more than half their monthly income for rent, and many more are living in tents, in cars, or in (often uncomfortable) roommate situations.
Yes, the construction-real estate industry seems relatively healthy at the moment, but the sales are nearly all going to second home buyers and investors. Or so I understand.
So I showed up at the Pagosa Springs Area Tourism Board meeting on Tuesday, to speak during the ‘public comment’ portion of the meeting. I suggested that the success of Lodgers Tax-driven tourism marketing is making it more and more difficult for workers to find housing they can afford.
Can we run a thriving tourism industry without workers? I would think not.
Would it be appropriate for the Pagosa Springs Area Tourism Board to use some of their $776,500 budget to begin addressing our housing crisis? I would think so.
As mentioned, local activist Lynne Vickerstaff also attended the Tuesday meeting, and also offered comments during the ‘public comment’ portion of the meeting.
Ms. Vickerstaff:
“I’m with Pagosa Housing Partners, and we received some funding [from the Town government] last Thursday to get started on some housing solutions. I’d like to reinforce what Bill was saying. I think, in the budget you have coming up, because of the County’s approval of the new STR regulations, and penalties, and really trying to get people to sign up, I think you are going to see an increased budget…”
The Archuleta Board of County Commissioners, on July 3, passed new regulations requiring Short Term Rental (STR) properties to register and pay annual fees. Many of those vacation rental properties have been operating “under the radar” for the past several years — mainly because there was no radar in Archuleta County. Those properties may, or may not, have been making their required Lodgers Tax payments.
The new STR regs established a new tracking system and fees to pay for tracking and enforcement. Will this mean a windfall of additional taxes for the Pagosa Springs Area Tourism Board to spend?
Will the Pagosa Springs Area Tourism Board find it reasonable to spend some of that windfall to address the housing crisis they helped to create?