It’s almost June and our summer season has already begun. The state of the economy, both at home and abroad, is crucial to our visitor numbers and business success. Factors such as employment rates, disposable income, consumer confidence and exchange rates can influence people’s decisions to take a summer holiday.
Overall, the U.S. and Colorado economies are positioned for continued growth and resilience into the summer of 2024, supported by favorable economic conditions and continued efforts to address challenges such as inflationary pressures and election year uncertainty.
US economic growth in the first quarter was 1.6%, below the 2.2% expected. However, the underlying data suggests a stronger position than this. Growth fell short of expectations due to an increase in imports and companies reducing their stocks. These factors are less indicative of the underlying fundamentals of our economy than spending and investment.
Consumer spending increased by 2.5% and business investment increased by 5.3%, indicating the country’s overall economic strength. This strength is evident in the stable visitation numbers during the summer season, showing a “normalization” trend in tourist traffic, with fewer extremes and more predictable holiday patterns.
Data from Inntopia’s latest reports from May to September show a 1% increase in occupancy compared to last summer. Earnings are currently being reported for May, July and September. Daily rates across the mountain region during the summer rose a modest 2.4%, with annual gains across all five months ranging from 0.2% in September to a 5.8% increase in August. The slight increases in both occupancy and rates are resulting in a 3.5% seasonal revenue increase for the summer.
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In Eagle County, we are fortunate to see a significant increase in summer occupancy compared to the overall industry. Local accommodation occupancy increased 6% over last year, demonstrating the strength of the Vail and Beaver Creek brands and the appeal of our exclusive events throughout the county. New flights from Chicago and Houston to Eagle County Regional Airport provide additional benefits to our tourist base and offer greater convenience for local residents traveling this summer.
We recognize the importance of events, festivals and cultural attractions in attracting tourists and encouraging them to stay longer in the Vail Valley. Our valley hosts a wide variety of events, from spring festivals like the recently concluded SpringFree Bluegrass Festival and Vail Comedy Festival to popular summer events like Bravo! Vail, various sports tournaments (soccer, lacrosse) and the GoPro Mountain Games, as well as traditional fall events such as Oktoberfest. We are fortunate to have such a diverse range of local events and attractions that enhance the experience for visitors and locals alike.
The summer of 2024 is expected to see high demand for outdoor destinations across the country as travelers seek open spaces and recreational activities. National parks, beach resorts, mountain retreats and rural getaways are likely to attract visitors looking for opportunities for hiking, camping and outdoor adventures. We can benefit from this multi-year trend of outdoor recreational vacations.
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The summer tourist season in the Vail Valley brings opportunities and challenges. It’s crucial to recognize that summer vacation is often considered a birthright. We are experiencing high lodging occupancy levels and strong summer demand, our brand positioning is strong, air travel to Eagle County Regional Airport remains affordable from major markets, and special events and group deals provide a solid foundation for the season.
What does all this mean for summer tourism? We’re going to be fine.
Chris Romer is president and CEO of the Vail Valley Partnership, the regional chamber of commerce. Learn more at VailValleyPartnership.com.
