W. Yellowstone’s winter business drops: Town seeks economic advice

Resort tax collections in West Yellowstone were down more than 15 percent this winter, resulting in $74,000 less in the town’s coffers than a year ago at the same time.

Town officials blamed the drop on the chaos surrounding winter-use rules for Yellowstone National Park and the town’s historical reliance on the snowmobile crowd.
And they are vowing not to be caught off guard again.

By NICK GEVOCK Chronicle Staff Writer

http://bozemandailychronicle.com/articles/2004/05/10/news/02taxbzbigs.txt

Even those who have previously questioned the town’s commitment to broadening the economy beyond the snowmobile tourism business say they’re seeing a major attitude shift.

"They seem to be willing to embrace something new, that’s a big change from last year," said Gibson Bailey, a town councilman and gift shop owner. "They’re desperate and they want something to happen."

The town’s economy was hit hard when a federal judge overturned the Bush administration’s plan for limited numbers of cleaner, quieter snowmobiles, further scaled back the number of snowmobiles allowed in the park and eventually reinstated the Clinton-era ban on the machines.

A handful of businesses that normally open in winter didn’t.

And the businesses that did open had weak seasons, Bailey said.

"This winter was a humbling experience," he said.

Businesses in West Yellowstone collected $401,664 in resort sales tax from December 2003 through March 2004, according to figures provided by the town.

That compares to $476,037 taken in through the same period the previous winter season.

January’s tax collections were down $43,000 from the previous year and businesses took in $22,000 less in March.

But the numbers weren’t all bad: February’s tax collections were up $2,000 from 2003, yet still more than $20,000 below the five-year average.

Several town officials and business owners, however, cautioned that the numbers didn’t accurately reflect how tough the winter was on businesses.

"Businesses basically didn’t hire anybody this winter," Town Operations Manager Fred Rice said.

And that will have a ripple effect that lasts throughout the year, he said. Although many businesses don’t make a lot of money in winter, the snow season allows them to keep important employees on.

And with the snowmobile rules still tangled in the courts, business owners are bracing for another unpredictable winter.

"The facilities that carry people through the winter basically don’t have any assurance that they’ll have winter business," Rice said.

West Yellowstone residents have been working to diversify the winter economy away from heavy dependence of snowmobiles for well over a year. Last fall the town completed a "visioning" plan that called for downtown beautification, more activities and an aggressive marketing plan, among other things.

A big part of that effort is just getting the word out that Yellowstone is still open in the winter, even if snowmobiles aren’t allowed, said Mary Sue Costello, director of the West Yellowstone Chamber of Commerce.

Last winter people around the world were confused and thought the park was completely shut down.

"We underestimated how broad that perception was," Costello said. "When you had people in your own community thinking Yellowstone was not open, that’s a little alarming."

Another part of generating business is letting people know that there’s a lot more to West Yellowstone than just the park, said Bob Jacklin, who owns a fly shop.

West Yellowstone needs to promote the millions of acres of national forests, the mountains and abundant wildlife just outside the park.

"We need to start giving West Yellowstone its own identity," Jacklin said.

The town will get some help revamping its image this week from the Rural Resource Team. The team is made up of representatives from government agencies and private enterprise and crafts assessments of what towns need to do to stoke their economy.

The group will hold more than a dozen "listening sessions" with different groups of people to brainstorm ideas, team leader Gloria O’Rourke said. Sessions aim to identify challenges, assets and what people would like to see change.

Then the team will make recommendations in a final report. O’Rourke said the team offers fresh eyes, ears and ideas that residents may have overlooked.

The sessions begin Wednesday, May 12 at 11 a.m. and run through Thursday, May 13.

For more information and an itinerary, contact the chamber at 646-7701 or the town office at 646-7795.