There is always a lot to digest from the research regularly pouring into Park City Chamber of Commerce & Visitors Bureau offices. Our most recent monthly data collection has plenty of economic points to ponder heading into the holidays.
Tax collections are a reliable indicator of consumer spending. Through November, Summit County is on track to meet or exceed its 2022 totals. Notable changes include for November include:
- 5 percent increase in sales tax collections.
- 3 percent increase in restaurant tax revenues.
- 7 percent increase in RAP (recreation, arts, and parks) tax collections.
- 1.5 percent decrease in transient room taxes.
Inflation affects consumer spending decisions, tax totals and travel behavior, and must be taken into account. In October, the Bureau of Labor Statistics reported inflation stood at a 3.2 percent annual rate and core inflation, which excludes food and energy prices, grew at 4 percent. Both measures exceed the federal target of 2 percent but show a slowing rate of increase.
It follows that a significant chunk of adults (22 percent) say inflation will significantly affect their travel decisions in the next six months, but that dropped from 26 percent in September. Inflation’s effect does not necessarily mean a reduction in travel or spending. It can sometimes encourage both on the assumption that each will be more expensive in the future.
Occupancy faced more headwinds in October, though the winter is looking positive. DestiMetrics-tracked properties — traditional hotels and short-term rentals — saw October occupancy drop 6 percent, though the average daily rate of rooms grew by 1.4 percent to $309.
As I reported last month, advance bookings are up 4 percent compared to last year — with February, March and April of 2024 looking particularly good.
Local Airbnb and Vrbo listings saw a similar decrease in occupancy in October — down 7 percent — but an increase in the supply (7 percent more listings than last year) probably dampened demand and put downward pressure on average daily rates, which showed a modest 2.4 percent increase.
As the season progresses — and we pray for snow — I will keep you updated on pertinent data relating to our evolving 2023-24 picture.
Finally, I know I speak for our board when I congratulate Ryan Dickey on his reelection to the City Council and welcome incoming council members Ed Parigian and Bill Ciraco, who take office next month.
We also thank outgoing members Becca Gerber and Max Doilney, who chose not to seek reelection to spend more time with their families. Max and Becca served with distinction, Becca for two terms and Max for one, helping steer us through COVID while making progress on issues such as housing, childcare, traffic and transportation.
I know native Parkite Becca will continue advocating for working moms and children and business owner Max, whose father Jim served the council in the ’80s, will stay active in civic groups and will continue to advocate for responsible development.
We will miss their small-business, real-time experience and perspective and we are grateful for their service and their ongoing contributions to making Park City better.
Jennifer Wesselhoff is the president and CEO of the Park City Chamber of Commerce & Visitors Bureau.