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Inbusiness: Winter in Big Sky Country

There’s no doubt that tourism has become a signifi cant contributor to Montana’s economy in recent years. With the loss of extractive indus tries, tourism has grown to be included among the state’s basic industries.

By Vikki McLaughlin of the Montana Standard

And while the state attracts most of its visitors in summer, especially with the draw of two of the nation’s most spectacular national parks, winter recreation brings its share of tourists to drop their dollars into the businesses and states coffers.

Skiing — downhill and cross-country — snowboard ing and snowmobiling take visitors onto the slopes and bowls of mountain country, while the more sedate may stick to ice skating, sledding or a moonlit horse-drawn sleigh ride hosted by an area guest ranch. And it’s rare to pass a frozen Montana lake without catching a glimpse of an ice-fishing shed and its bundled-up inhabitants.

Sixteen downhill ski areas dot the Montana mountains, some destination resorts with all the amenities to pull folks from far away, and some mostly day-use areas where more local skiers spend their weekends.

Travel Montana lists 19 groomed cross-country ski touring trails on the state’s nine national forests, stretch ing out for more than 600 miles. Another 12 crosscountry ski centers with trails covering about 360 kilometers are listed, most of them offer ing lodging, and several that offer food service, equipment rentals and ski instruction.

For those who like a little more speed on the snow, snowmobiling is a growing sport in Montana, where 3,700 miles of groomed trails await. And, of course, that’s not all. The more adventurous snowmobilers can head for hundreds of miles of back country open to the sleds.

Visitors to Montana0 numbered 9.55 million in 2001, compared to 9.46 million in 2000. The 2001 total adds up to 10 visitors for each and every Montana resident, according to Victor Bjornberg, Travel Montana’s tourism develop ment coordinator. And that adds up to 10 more customers for Montana businesses.

Montana ranks 43rd in the nation in terms of total spend ing by tourists, but 13th when it comes to per-capita tourist spending. Nonresident visitors spent $1.74 billion during their stay last year: 26 percent on food, 24 percent on retail sales, 22 percent on gas, 17 percent on lodging and 10 percent on other purchases and transportation.

Figures from the Institute for Tourism and Recreation Research of the University of Montana put the indirect eco nomic impact of those visits at $317 million for a combined total of direct and indirect impact of more than $2 billion. The direct impact to employee compensation is figured at $410 million, plus an indirect impact of $82 million for a total of $492 million. And the direct impact to proprietors’ income was $47.5 million plus $23 million in indirect impact for a total in that category of $70 million.

The contribution of nonresi dent visitor spending generat ed $563 million in personal income for Montana residents in 2001, the institute said in its report. And every nonresident dollar spent in the state generated 32 cents in personal income for residents. Each dollar spent also generated 8.4 cents in state and local tax revenue.

Nonresident travel expendi tures directly and indirectly contributed to the generation of 32,440 Montana jobs in 2001, which is nearly 6 percent of all jobs in the state, the ITRR said.

Winter visitors to Montana numbered 801,562 in 2000-01, and they spent about $273 million, according to the ITRR. In comparison, 2.2 million summer visitors spent $970 million. However, the average expenditure by travel groups is the highest in winter – $110 a day versus $109 in summer. Winter visitors spend more on lodging, restaurants or bars and transportation, Bjornberg said.

In a 2001 survey by ITRR, 23 percent of winter visitors indicated their primary reason for a trip to Montana was vacation or recreation. Another 16 percent said they came to the state to visit friends or relatives, 18 percent were here for business and the biggest group — 29 percent — were just passing through.

Overall, the “ typical” nonresident winter visitor, according to an ITRR report, spent $110.94 a day, stayed 3.1 nights, had 2.4 people in their travel party and a household income of $60,000 to $80,000. Visitors were most likely to be from North Dakota and Wyoming, followed by Washington state and Alberta, Canada. Ninety-five percent had been to Montana before, and 96 percent planned to visit again in the next two years.

Shopping was the activity participated in the most — 41 percent — followed by downhill skiing and gambling, which had 12 percent each.

The average daily expenditures of winter visitors have increased nearly 16 percent since 1997-98. Most of that increase is due to inflation, but some may be attributed to price increases, the ITRR said. The largest percent increase was in restaurant and bar spending, which had a 23 percent increase.

Nearly one-quarter of winter visitors — 22 percent — flew to Montana, and 12 percent of those rented a vehicle.

The U.S. Census Bureau report for the year 2000 showed Montana skiing facilities — defined as facilities without lodging that offer downhill or cross-country skiing — employed 807 people, and had an annual payroll of $4.9 million. Those figures were based on 15 such facilities.

The 1997 economic census reported 14 establishments with employees in the skiing facilities industry with receipts of $14.55 million. That total included $9.577 million for lift tickets and trail passes and $1.089 million for food and beverage sales.

Montana has three ski areas which are reported in the census under the accommodations industry — those with lodging facilities. And those three areas have 54.3 percent of the lift capacity as well as the highest lift ticket prices, according to a report to the state Tourist Tax Committee by tax policy analyst Dan Dodds.

In 2002, Montana has 12 ski areas that would be classified in the traveler accommodation industry, Dodds reported. Three are large downhill ski resorts while nine are lodging facilities with cross-country ski trails.

Based on lift capacity and lift ticket prices, the ski areas in the traveler accommodations industry are estimated to account for 68.6 percent of lift ticket receipts, Dodds reported. If receipts grew at an average annual rate of 3.1 percent, Dodds said, then based on 1997 receipts, the lift ticket receipts should be about $35.530 million for 2002.

Winter groups that were primarily attracted to Montana for downhill skiing or snowboarding represented 22 percent of all winter nonresident groups vacationing in the state, the ITRR reported. Those visitors accounted for 9 percent of all winter nonresident expenditures, spent the largest portion of their money on lodging and stayed an average of 5.9 days. The skiing-snowboarding groups generally traveled with family, as couples or with friends, and came from North Dakota, Minnesota or Washington. Most were on vacation, visiting family or friends or were on business.

Snowmobiling was the primary attraction for another 20 percent of all winter nonresident groups vacationing in the state in 2001, the ITRR said. They accounted for 11 percent of all winter nonresident expenditures, spent the largest portion of their money on restaurants or bars and stayed an average of 6 days (5 nights).

Groups that came to Montana to snowmobile generally traveled as friends, family and friends or as couples, and came from Minnesota, Washington, Idaho or Utah. Most were on vacation, visiting family or friends or passing through.

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