I am totally supportive of diversifying our local economy and bringing Primary Job Creators to our area and reducing our reliance on tourism activities as our primary economic driver. However, ahead of selecting and hiring an individual supported by tax dollars, I think it is vitally important to first improve the local business climate, by identifying, removing and remedying those policies and or mindsets that prevent our area from being able to retain and attract primary job creators.
Existing local business owners and others from the private sector that have responsibility for payroll and profit and loss performance would be the local resources to engage in this process. Government is not qualified nor experienced in such matters. To send someone out at this point in time to try to bring new jobs to our area would be a waste of time. We presently have very little to offer and little to differentiate ourselves as a community. Yes, we are a beautiful, friendly, safe community, (and — “Refreshingly Authentic”) but many other mountain communities would make the same claim. We would not get a second chance to make a good first impression. Let’s get the horse where it belongs relative to the cart!
While the performance of Tourism Marketing efforts has been good, as evidenced by the simple measurements of Sales Tax Collections and Lodging Tax Receipts, we really do not know how effective our efforts have been when measured against our peers. In other words: yes, our numbers are up, but so are the numbers for other mountain communities with a large Tourism component. What we really need to know is, how does our Tourism Marketing performance match up against other communities, given adjustments for size and budget? Before we blow our horn too hard or too often, let’s get an appropriate context. At the point in time that we, as a community, know we are doing everything possible to increase the direct economic benefits of tourism to our community with the Lodging Tax receipts we are entrusted to invest, then it might be appropriate to make a change relative to how those funds are invested, not before.
The individual hired for the full-time position of promoting tourism in our area is paid by monies generated by Lodging Tax. If that is no longer a full-time position, then the pay associated with the position should not be full time pay. Or, if there is the desire for that person to take on roles outside of Tourism Marketing, then a portion of the compensation, tied to the time allocated, should be paid by the other entity being considered. If the Town Council wants this person to handle other tasks and duties, such as Economic Development, then the money needs to come from some other source, or measures need to be taken to go back to the voters to request a change in how Lodging Tax receipts are spent.
The Town Council would also want to examine the role of the Community Development Corporation (CDC) and its financial support of that organization.
For those who were not in Pagosa Springs when the Lodging Tax mechanism was proposed, discussed and approved, the money generated must be spent on a relatively narrow range of activities, and I do not believe efforts to diversify away from Tourism would qualify. It would be totally inappropriate for the Town Council to siphon money from Tourism to support efforts to diversify away from Tourism. I would fully expect all of the businesses paying Lodging Tax would be very concerned if they thought the Tax would be used for other purposes.
These matters need to be given serious and careful consideration and need to include a clear and accurate reflection of the Lodging Tax policies and what the responsible and ethical action should be. I am hopeful the members of the Town Council will do the right thing, in the right way.
Mike Heraty is Managing Broker and Co-Owner, with his wife Lauri, of Pagosa Source Real Estate Advisors. He can be reached by phone or text at 970-946-6030, email him at Mike@PagosaRealEstate.com… or visit PagosaRealEstate.com