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To u ri sm Recommendations Stefanie Dalgar, Colorado Tourism Office BACKGROUND: The significance of tourism to Colorado's economy is striking. Tourism is one of the state's leading industries, with over 200,000 Colorado workers employed by the industry. In 2000, travelers spent approximately $7 billion in the state, which equates to $19 million per day. Even a minimum decline of 10% in tourism spending would mean a decrease of approximately $700 million. Moreover, the economies of a number of regions in the state are extremely dependent upon tourism. For some regions, more than one -third of direct basic income is attributable to tourism. In some ski/resort counties, tourism accounts for over 75% of direct basic income. Economic Impact of tourism industries: Hotel & Lodging ............ $7.8 billion (1997) direct impact on Colorado's economy Restaurant ..................... sales estimated to reach $7.3 billion in 2002 Golf ............................. approx: $655 million (2000) Fishing ......................... approx: $1.3 billion per year (total economic impact, not just tourism) Rafting .......................... $125.8 million (2001) EMERGENCY MEASURES: There are no emergency measures proposed at this time. POTENTIAL IMPACTS AND MITIGATION MEASURES: 1. Rafting — Based on information provided by the rafting association, the rafting sector located in the southwest region of the state could experience an economic loss due to drought. • The southwest region typically runs the Lower Animas, Upper Animas, San Juan, Piedra, Dolores and San Miguel rivers. The worst case scenario for this year would be that they could primarily only run the Lower Animas. They might be able to run the Upper Animas for a very short time. In addition, the season could be shorter. Typically, the season runs April through August. Should the season end as early as June, it could cut into the peak of the rafting season (July & August), during which time approximately 50 percent of business is conducted. • Although water levels across the state are expected to be low, the Colorado and Arkansas River outfitters are anticipating a shorter, but average business year. The water will still be flowing and conditions are expected to be ideal for visitors who have limited experience on the water. According to the Colorado River Outfitters Association (CROA), their reservations are strong so far. They are also recommending people book the trips earlier this year. RECOMMENDED MITIGATION / RESPONSE: • Public Outreach/Education: Counteract negative publicity by reminding the public that they can enjoy Colorado's rivers even if water is low. Keep the public optimistic about tourism's viability during drought and heightened fire danger.