Candidates take part in tourism roundtable

Tourism leaders and business owners addressed Montana Legislature candidates last week telling them to keep the tourism industry in mind when heading to the Capitol in 2013.

The tourism roundtable held at Flathead Valley Community College was sponsored by Voices of Montana Tourism, a statewide collaboration of organizations that work to raise awareness about tourism.

Several speakers asked leaders to keep tourism as a priority. Some noted tourism brings value to the local and state economy, while others specifically addressed the state bed tax saying it’s necessary to keep promoting the state as a destination.

Dan Graves, president of Whitefish Mountain Resort, said 63 percent of the mountain’s guests come from outside Montana and it participates in “trickle down” economics.

“I think we have a fairly large impact on the community,” he said.

The resort’s annual wages add up to $5.9 million, plus it pays $168,000 in bed tax and $405,000 in property taxes.

Ski resorts face challenges by being weather-dependent, he noted, in addition to typical business challenges such as increased operating costs and frivolous lawsuits. One of those challenges is the state equipment tax, which the resort pays $153,000 annually for.

“That’s an impediment to businesses that want to come to this state,” he said. “We need government to let us do what we do best — provide jobs and maybe make a profit.”

Luke Walrath, executive director of the Alpine Theatre Project, told the group that the arts provide something extra that can often lengthen a visitor’s stay once they’re here.

“We are the unexpected assets,” he said. “In 2011, our economic impact in the valley was $1.6 million. Everybody knows that Montana is beauty and recreation. People walk out of our theater and say ‘who knew?’ We’re the difference between a one night stay versus three when they find out there is more to do.”

Walrath said by year’s end he expects about 10,000 people will have attended shows with ATP.

Aubrie Lorona with Swan Mountain Outfitters asked candidates for recreation-friendly legislation and tourism promotion.

Swan Mountain Outfitters offers year-round recreation opportunities through snowmobile rides and trail rides including in Glacier National Park. She said summer is the easy season to draw customers, but promoting the three other seasons remains a priority for her business.

The outdoor recreation industry grew 5 percent between 2005 to 2011, she said.

“We love Montana and sharing that with people,” she said. “Ninety percent of our guests are non-residents.”

The discussion at the roundtable turned to how the Legislature might assist with air travel to the area including increasing flights to the area.

Jan Metzmaker, director of the Whitefish Convention and Visitors Bureau, said airlines care about filling seats and making money. She noted that efforts are underway to attract more flights.

Rhonda Fitzgerald, who owns the Garden Wall Inn in Whitefish and is the chair of the Montana Tourism Advisory Council, pointed out that while other business helps support air travel to the Flathead it’s the tourism industry that is the mainstay.

“Without 2 million visitors each year we wouldn’t even be talking to airlines,” she said. “Tourism provides the body for other industry growth and diversifies the economy.”

State Sen. Bruce Tutvedt, a Republican seeking re-election in Senate District 3, spoke about the bed tax, which was created by the 1987 Legislature. The lodging tax is now at 7 percent, with much of that money going to promote the state for tourism. In 2011, two bills would have reduced the lodging tax funds passed in the Legislature but were vetoed by Gov. Brian Schweitzer.

“I see no reason why anyone will go against that money,” he said. “I’m glad you’re defending your money.”

Mary Paoli of Voices of Montana Tourism spoke about the importance of tourism and how important marketing, made available through the bed tax, has been to bringing visitors to the state. Prior to passing the tax, Montana in 1987 ranked near the bottom of all states for tourism marketing.

In the 1980s, Montana spent around $1 million in marketing while neighboring states spend about four times that amount. Today, Montana has a much bigger presence in travel marketing and is on-par with those other states.

“We have to do something if we want travelers to come here,” Paoli said. “In 1987 less than 3 million visitors were coming to the state and today there’s 10.5 million travelers.”

That has resulted in the state growing on the revenue side from collecting $1 billion from visitors in 1987 to nonresident visitors spending about $2.77 billion.

“We all want to see our state grow and tourism is one of the industries that has helped us grow,” she said.