Drop in lodging affects other businesses, more

Jana Mathia, Gazette Editor | May 14, 20200

COLFAX – What does the arts council fish fence, restaurants and state parks have in common?

When lodgers don’t stay at local hotels, they all take a hit.

Projects like arts council murals, the regional swim meet, Chamber of Commerce photography contest and the MacDougall track invitational all receive funds from the local lodging tax through the economic development, tourism and events commission and city council. This fund is fueled by a two percent tax in addition to sales tax when staying at hotels.

“That does fund quite a bit,” said Caleb Cox, director of sales at Wheatland Best Western. Cox also sits on the economic development commission which makes recommendations to the city council on where to grant the funds.

But lodging tax funds are down. The end of April report – which reflects March business – was down $850.

“I think next month will be even more telling,” said City Manager Chris Mathis. With money still in reserves for that fund, Mathis expects the effects will be seen more next year on grants.

A drop in lodgers also has a more immediate impact on many local businesses, starting with the places those lodgers would sleep.

“It’s hit us hard,” said Cox. “Our spring is basically dead.”

May and June are the start of peak season for Wheatland Inn, especially with photographers. Now they aren’t even at 50 percent capacity, according to Cox.

“We are almost non-existent,” said Siesta Motel owner BJ Gransbery. “Usually we’re booked out a year in advance this time of year.”

While the Siesta is too small to charge the lodging tax, Gransbery noted other impacts from not having those people. Visitors aren’t eating at local restaurants, buying fishing and hunting licenses or purchasing passes to go to state parks.

Even though the Siesta has an only 48 hour cancelation policy, bookings are being canceled for next month already. One photography group that had the entire motel booked in June canceled its reservation.

Cox stated when the groups cancel, he is encouraging individuals to still try and come. Those groups are also a big deal for the leaders who organize them and have now lost the revenue from the trip.

Wheatland is still seeing some lodgers such as corporate businesspeople, out-of-towners coming for doctor appointments and some travelers. But so far this year they have taken about a 30 percent hit.

According to Cox things are starting to pick up a little as people emerge from lockdown, but there is no saying how things will progress. For Gransbery, those with Cougar game reservations are hanging on longest in the hope of games to attend.

Fortunately, the city’s lodging tax fund had some reserves built up from previous years, so the hit should not be felt as hard this year. Mathis expected next year the effects will be felt, but does not know what the long-term effects will be.