Local Economy Holding It's Own

August 22, 2008
It's turning out that, for the local economy, 2008 may be turning out to be "one of those years," reminiscent perhaps of the fire and drought-hampered down year 2002.

We just got back the first important indicators for the all-important summer season. While not disastrous, they are a bit gloomy, about what one might expect in the current climate of high gas prices and a housing crunch.

The City of Ouray just received back its sales taxes from Denver, those collected in June when tourism time was kicking in. The tax number was $81,500, down about 7% from the same period in 2007, though nearly identical to the June 2006 collections.

For the first eight months of 2008, overall sales tax collections remain down by about 1.5%, an amount that translates to a measly $7,500 downturn in tax receipts to the city.

The hotel numbers echoed the sales tax, down from 2007 (52% occupancy rate vs. 54%), and on par with 2006. (And with an extra buck on the lodging tax, those receipts are running almost 40% over last year).

Likewise, admissions to the Hot Springs Pool were off 6%, but in line with 2006.

Glass half-full-type people might say that in the current economy, Ouray seems to be holding its own, that single-digit declines are tolerable.

They might purport that we're still attracting about the same number of tourists, but casual observation indicates that the $4 gasoline means they're coming from closer places, such as Grand Junction and the Front Range. Presumably, many people are choosing to vacation here instead of the big trips to Europe or Disney World.

But the pessimists might look at the June numbers and wonder if we're just waiting for the other shoe to fall. Could the current slow-down just be the tip of an iceberg of serious financial difficulties?

Economic crystal balls are notoriously opaque, so we'll just have to see how it plays out.

Regardless of how the monthly tourism-driven numbers continue to roll in, Ouray enjoyed a jolt of news this week that relates to its economy. And it can only be considered positive.

That, of course, is the purchase of the relatively new water bottling facility that never got over the hump for its originally intended purpose, when 80 or so jobs were first promised.

Now, after years of the seeing the plant/warehouse facility wallow in a morass of legal and financial condition, it is owned free and clear by two local young and energetic entrepreneurs, Ben Lockard and Eli Doose.

With the water bottling equipment headed to Arkansas, that business plan has been thankfully put to rest. Instead, Lockard and Doose intend to use the facility to help create "a new economy" for Ouray, one where small enterprises manufacture specialty products.

We'll eagerly watch to see how this mixed-use light industry develops under the guidance of Lockard and Doose's High Country Development Group.

So for now, while the local economy's not great, this fiscal sky is definitely not falling. And on the horizon, we see some great promise to finally realize the potential of the big facility in north Ouray.

— David Mullings