Resort-tax collections show strong summer season

By LYNNETTE HINTZE/Daily Inter Lake

Tourism officials said earlier this year that high gas prices and a soft economy wouldn't keep visitors away from the Flathead Valley - and Whitefish resort-tax collections over the summer indicate that prediction was right on the money.

Collections from the 2 percent Whitefish tax on lodging, restaurants/ bars and retail goods were up about 16 percent for the summer season from June through September. The city collected $884,606 during that period this year compared to $759,362 last year.

Resort-tax collections were especially strong in August, the peak of the season.

August collections this year were $296,854, compared to $223,016 in 2007. But even in September, when the financial markets began their tailspins, Whitefish resort-tax collections held strong, with $243,610 collected, up nearly $29,000 over last year.

"This doesn't surprise us," Whitefish Chamber of Commerce director Sheila Bowen said. "From the Chamber's point of view, we've sent as many packets and had the same number of parking issues. It's been as busy as it always is."

Bowen said retailers and lodging representatives who attended a meeting in August about the downtown master plan indicated they were having "a great August and that September would match or beat" last year.

Collections from the retail sector, historically the biggest contributor to the resort tax, were robust this summer, with an increase of more than $61,000 in resort tax collected this August over August 2007.

Retail collections should remain strong with the coming addition of a new and larger Army-Navy Store, a new Walgreens, a new and much larger Safeway grocery store and S.M. Bradford Co., a women's clothing store in a new upscale building in downtown Whitefish.

Bowen said Whitefish is now in the shoulder season, with fewer visitor inquiries, but that's expected.

"What we're experiencing is exactly what we expect," she said. "By Nov. 15 we expect a huge rash of calls for winter activities.

"We are surprised at the number of relocation packages we're still handing out," Bowen added.

Whitefish Visitor and Convention Bureau Director Jan Metzmaker said her organization has worked hard to "figure out who our customers and markets are" and those studies appear to be paying off. Seattle, Portland, Minneapolis and Chicago continue to be prized marketing spots for the Whitefish group.

Metzmaker just returned from a ski show in Seattle and saw no signs of an economic downturn.

"You never would've guessed there was anything wrong with the economy at the Seattle show," she said. "People were still buying a lot of stuff.

"We think people will ski if there's snow," Metzmaker continued. "They may not stay as long or eat as fancy, and they may not drive as far, but they'll still come."

Working with Amtrak for reduced-fare coupons to Whitefish has paid off well, Metzmaker noted, especially in the throes of $4-a-gallon gas.

WHITEFISH'S strong summer numbers are somewhat of an anomaly when compared to information gathered by the Institute for Tourism and Recreation Research at the University of Montana. The institute released a snapshot of recent and ongoing studies that included year-to-date statistics on nonresident travel in Montana.

"All indications point to a down year for nonresident travel," the report said.

While airport travel was up 3.8 percent statewide - Glacier Park International Airport was up 6.5 percent - most other tourist-traffic indicators were down. The number of hotel rooms rented this year in Montana is down 1.1 percent and the volume at the six major entry roads is down 9 percent.

Because the economic downturn in the United States had the potential to affect Montana tourism, the institute updated its 2005 vacationer study two years earlier than normal by conducting a third-quarter 2008 comparison study. It showed that visitors are spending less per day here - $177 daily during the third quarter of 2008, compared to $210 per day in 2005, a drop of 15 percent.

Vacationers' total trip expenditures have dropped 26 percent since 2005, from $1,386 in 2005 to $1,029 this year.

Visitors also are staying about one less day in Montana during their stay.

Glacier National Park visitor numbers stayed even with 2007 through August, the institute said. Through the end of September, the number of Glacier Park visitors totaled 1.93 million, down by about 2.6 percent over 2007.

August was a booming month for Glacier Park this year, with a visitation increase of nearly 18 percent.

Features editor Lynnette Hintze may be reached at 758-4421 or by e-mail at lhintze@dailyinterlake.com