Summer in Steamboat has Officially Begun:

Summer in Steamboat has officially begun but for a tourist destination, it is set to feel markedly different from past years. The current statewide ban on groups of 10 or more people forced the cancelation of Steamboat’s legendary line up of festivals and events for summer 2020.

How the City is Balancing the Drop in Revenues:

As of June 1st, lodging reservations were only at 10-15% of total occupancy, and the City had made significant budget cuts. “The City relies heavily on sales tax however we are fortunate that about 65% of that comes from locals,” said Kim Weber, Finance Director of the City of Steamboat Springs. Other revenue streams, which include special events, facility rentals, planning and building permits, are all down considerably.

The city began cutting budget at the start of the pandemic in an effort to balance an estimated 20% drop in revenues. “We are working to make reductions in operations that have the least impact on the community yet enable us to be prepared to react when our revenue returns to where it was before,” Weber said. Executive orders along with current state and local health orders are constantly evolving giving Weber cautious optimism about the future.

The two largest revenue generators for the city are sales tax and property tax. Much of sales tax revenue is collected during ski season, which has spurred city staff to make smart fiscal decisions in the summer. Approximately 40% of the local economy relies on tourism, enabling the city to rely on sales tax and keep property taxes low. “We certainly want to support our tourism industry but we also have to explore other avenues to support the economy,” said Kara Stoller, Chief Executive of the Steamboat Springs Chamber of Commerce.

Until a few weeks ago, the Colorado Tourism Office was not encouraging out of state travelers to visit Colorado. This is no longer the case. Visitor numbers are up significantly in early June, giving local businesses hope that the worst is behind us. “We have the opportunity to convey our wide open spaces and the ability for people to be able to do so much while they are here, while remaining at safe distance,” Stoller said.