A local realtor has posted a video and commentary, claiming that Short Term Rentals (STRs) are responsible for generating “$109 million” in economic activity in Archuleta County.
Purportedly, this $109 million figure is derived from a recent report submitted to the Town of Pagosa Springs, by Root Policy Research. The Town government is interested in quantifying the negative impacts of the STR industry, and according to the Root Policy report, a substantial negative impact is generated by the types of low-wage jobs that result from an expanding tourism industry — in a town where housing is nearly impossible to find if you are a newly-arriving working family.
I have been frustrated by the claims made by our local realtor, and by the challenge of getting a clear understanding of the Root Policy data.
Root Policy was asked to look at the impacts within the municipal town limits. But our realtor friend has been using those numbers to make claims about Archuleta County as a whole.
“ Root Policy went on to state that they were not trying to determine the ENTIRE economic impact of all STRs.
“ Reasonable assumptions can be made about the entire impact STRs contribute to our local economy.
“ Overall, these numbers will fluctuate based on certain assumptions.
“ After corrections, the numbers in this video are close to the total economic impact of STR’s.
Based on responses to my inquiries about on the Root Policy study, — from Mollie Fitzpatrick, Managing Director and Co-Founder at Root Policy Research — and a Facebook confirmation that our realtor friend understands that the Root Policy study is “not trying to determine the ENTIRE economic impact” … the realtor’s conclusion that STRs contribute $109 million to Archuleta County is in conflict with Root Policy guidance.
Here is some key information for readers interested in better understanding specific details.
Ms. Fitzpatrick explained that “STR ‘new demand’ calculated by Root Policy should not be used to estimate the entire economic impact of all STRs.”
Calculating economic impacts is as much an art as a science, and Root Policy used artfully-generated data from other Colorado studies as the basis for their Town of Pagosa Springs study. As noted in their report, the $14.5 million is derived from applying the “Mountains and Mesas” spending profile to Archuleta County.
Applying this share to total travel spending in Archuleta County — which was $129.8 million — an estimated $14.5 million in spending was generated by increased tourism activity generated by STRs in Archuleta County.
Short Term Rental Fee Study, Section 1, Page 8:
Typical STR in Pagosa Springs is rented 131 days per year and generates $31,464 in revenue annually.
Technical Appendix, Demand Side Model, Page 1- 2
In 2021, we estimate:
STR visitors spent $392 million in Mountains & Mesa region.
STR visitors spent $241 million (new demand) in Mountains & Mesa region.
STR visitors spent $14.5 million in Archuleta County
Our realtor friend at ‘This is Pagosa’ on Facebook has no business using Root Policy numbers casually — and probably inaccurately — to make the STR industry appear more important than it actually is.
Hank Lydick
Austin, TX (now)
Pagosa Springs, CO (soon)