New study finds area not spending enough on tourism

A study has confirmed what the city’s Convention and Visitors Bureau has long suspected — that it spends much less money on marketing for tourists than it should.

The CVB spent $40,000 in private money to commission the study by Philadelphia-based Tourism Economics. It found that the bureau should spend $8 million annually, compared to the $3.4 million it currently spends for El Paso, Fremont and Teller counties.

Aran Ryan, who directed the study, said it compares the area with 19 western cities, including Denver.

“Denver only has twice the hotel rooms (as the Pikes Peak region) but spends six times more on tourism,” he said.

The study also recommends that the area raise its tax on lodging, auto rentals and attractions to 4 percent to pay for spending more on tourism marketing.

“It would still be low, relative to other communities in the region,” Ryan said.

According to the study, the local area would generate between $130 million and $230 million annually in additional revenue by spending more on marketing and increasing the lodging tax.

“Doing both also would create 1,400 local jobs,” Ryan said.

Doug Price, president and chief executive officer of the CVB, said the study results are important because the area competes with other cities in the state for tourists, as well as with other states.

“We compete with the mountain communities, Denver and Rocky Mountain National Park,” he said. “We need a bigger voice to get our fair share.”

Alex Marquez, a Texas resident who brought his family to Colorado for spring break, agrees that the Pikes Peak region should market to tourists better.

“I just knew about Garden of the Gods by word of mouth,” he said. “I didn’t know this is such a great place. People back in Texas aren’t familiar with it. I don’t think it’d be a bad idea to raise the lodging tax. It won’t discourage people.”

Keith King, president of the Colorado Springs City Council, said he wants to learn more about the study before deciding whether to support its findings.

“We probably don’t know (yet) how that money would be allocated and used,” he said. “The economy and the progress of projects like City for Champions will determine what happens with marketing.”

Price said the area has $640 million invested in 30 projects that are finished or in development.

“We owe it to those who invested in those projects to bring more tourists here,” he said.

To see the study, visit: http://www.visitcos.com/tourismpays.