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ImpactTaskForceReport2002
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Last modified
4/29/2010 3:19:14 PM
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4/29/2010 2:00:34 PM
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Drought Mitigation
Title
Impact Task Force Drought Assessment and Recommendations
Date
5/1/2002
Description
Drought Assessment Report
Basin
Statewide
Drought Mitigation - Doc Type
Reports
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ImpactTaskForce2002Summary
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\Drought Mitigation\DayForward
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employment and 76 percent of its income. The second - highest tourism dependent area is Region_.9,_ —. <br />--- Archuleta; Dolores; La Plata; Montezuma; and San Miguel counties. Tourism accounts for 34 percent of <br />southwestern Colorado's income and 24 percent of its <br />employment. The third - highest tourism dependent region in the state is Region 10, Delta, Gunnison, <br />Hinsdale, Montrose, 4uray, and San Miguel counties. In Region 10, tourism comprises 27 percent of <br />the region's income and 21 percent of its employment. <br />The current drought in Colorado most likely will impact the tourism sector through a decline in a variety <br />of recreational activities. These include skiing, hunting, fishing, rafting, camping, and touring. As <br />stated above, tourism accounts for approximately eight percent of Colorado's nonfarm employment, or <br />approximately 220,000 jobs. Almost 53 percent of the tourism jobs in Colorado are in five sectors that <br />are likely to be affected by the drought. These sectors are, in order of size: skiing, outdoor recreation, <br />touring, resorts, and parks. Skiing accounts for 14.3 percent (30,347 jobs) of total tourism employment, <br />outdoor recreation accounts for 13.1 percent (27,891 jobs), touring accounts for 10.1 percent (21,335 <br />jobs), resort activity accounts for 9.9 percent (20,912 jobs), and park visits account for 5.5 percent <br />(11,595 jobs). <br />In total, tourism injects approxh.- lately $8.5 billion into the state's economy. Skiing, the largest sector of <br />the tourism industry, accounts for 19 percent ($1,368 million) of total tourism spending. Touring <br />accounts for $720 million (10 percent) of tourism spending in Colorado and outdoor recreation <br />contributes $648 million (9 percent) to the state's tourism spending. If visits to the state's ski areas <br />decline in the 2002 -03 ski season because of a lack of snow, the state's tourism economy will be <br />seriously affected. Furthermore, state income and retail sales tax revenues will be lower. In addition, if <br />tourists do not come to Colorado for touring or outdoor recreation, the state's economy will be impacted <br />through a decline in hotel and restaurant visits as well as retail sales. This will also severely impact the <br />state's economy. <br />Experience with the 1977 Drought <br />The last major drought in Colorado occurred in 1977. Data from the 1977 drought show that ski lift <br />ticket sales declined by 2.3 million tickets, approximately 40 percent. In addition, employment at the ski <br />areas declined by 15 percent. Moreover, it is estimated that the revenue loss to resort communities was <br />approximately $76.8 million in uninflated dollars; commercial airlines lost approximately $15 million; <br />retail sales declined by $7 million; and restaurant and hotel visits declined 29 percent. <br />Experience with the 2002 Drought <br />There is little statistical evidence available to date regarding the impact of the current drought on the <br />state's tourism economy. Moreover, the evidence available thus far from the 2001 -02 ski season is <br />complicated by the events of September 11. The most current data show that skier visits declined 5.1 <br />percent in the 2001 -02 ski season. However, much of the downturn occurred in the first part of the ski <br />season (November and December) and is most likely a result of September 11 rather than a lack of <br />snow. Skier visits declined 14 percent in the first part of the ski season compared with the comparable <br />period for last year, whereas they were almost equal with the prior ski season for the latter part of the <br />2001 -02 ski season. Much of the downturn occurred in the destination resorts (down 7.3 percent) <br />compared with a decline of 4.3 percent for the Front Range ski areas. This further suggests that the <br />decline can be attributed to September 11 rather than the drought. <br />The impact of the drought on the tourism economy can also be assessed by examining how retail sales <br />have fared during this ski season. In the mountain counties, during the first three months of the 2001 -02 <br />
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