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Ski Towns See Hard Times On Slopes

Recession's effects felt even in mountaintop resorts

By Lisa Wade McCormick
ConsumerAffairs.com

March 15, 2009
A few skiers mingle near the fire pit just outside the 9380 Prime Bar at the Elevation Hotel & Spa in Mt. Crested Butte, Colorado.

It's approaching five-thirty in the afternoon and the bartender shouts "Last call" to the small crown gathered on the patio at the foot of the mountain — just a few feet from the Red Lady Express lift that has closed for the day.

The sun is starting to fade on this mountain community in southwestern Colorado, which Travel + Leisure magazine calls one of "America's Best Small Ski Towns." But despite the accolades, you won't find many crowds on the slopes of Crested Butte this winter.

View from the slopes of Mt. Crested Butte, Colorado. Photo by Lisa Wade McCormick.

You won't find them in many of the bars, restaurants, or shops around town, either. Is that a sign of the tough economic times?

"Absolutely," says Todd Walton, communication director for Crested Butte Mountain Resort.

The affable Walton acknowledges this ski-Mecca, known for its extreme terrain and friendly, small-town charm, is not immune from the effects of an ailing economy.

During an interview with ConsumerAffairs.com earlier this month, Walton told us the number of skiers visiting this mountain retreat has dropped this winter.

"We're down close to ten percent," he says, glancing around the nearly empty 9380 Prime Bar patio area. "That's not good. The economy has hurt us. We've had to lay off 10 to 12 people. For a small community like ours, that's a big deal."

According to Walton, 7,956 skiers came to Crested Butte in October/November of 2008. During those same months in 2007, 14,894 skiers came to the mountain.

83,454 skiers hit the slopes in Crested Butte in December 2008. That's down from 102,294 skiers in December 2007.

The numbers picked up somewhat in January and February 2009, but were still down from total attendance from the previous year. This pristine mountain resort tucked away in Colorado's Gunnison National Forest is not immune to effects from the global economic crisis.

Some troubling signs include:

• Groups that booked trips to Crested Butte — as far back as last July — have cancelled;

• Many skiers are deciding to come at the last minute. "People are booking their trips much later," Walton says. "They're making a decision on Wednesday or Thursday to come for the weekend. They may say "Hey, I've a got a little extra money, let's go skiing.'" That's especially true among in-state skiers, who can drive from Denver to Crested Butte in about 4.5 hours.

• Skiers are tightening their wallets. "They're still spending money, but they're looking for deals," Walton says. "They may be more interested in buying a hoodie as opposed to a $400 ski jacket. But now that those are marked down, they're moving. And there are always deals to be had."

• Walton and other salaried members of Crested Butte Mountain Resort's management team now work six days a week instead of five. Earlier this month, Walton spent his sixth work day scanning tickets at the Red Lady Express Lift;

• The resort's management has postponed plans to build more condominiums. "We had 50 to 60 percent of Cimarron sold," Walton says, referring to a planned development at the foot of the mountain that was to house luxury condos. "We held off on those plans and reimbursed all the money to the buyers."

"Fewer people coming to our little town"

Three miles down the road, shop owners in the historic mining town of Crested Butte — which is a separate community from Mt. Crested Butte — say the sagging economy has also hurt their business.

"We're slow," says David Moore, owner of Blue Moon Books on Elk Avenue. "I've heard everybody is the same way. Their figures are down. There are fewer people coming to our little town."

Some businesses in the National Historic District, he said, have even closed. "We have some empty store fronts. Two real estate offices have closed and a clothing store also went out of business."

The 1,550-some residents of this mountain hamlet are loyal to their hometown businesses, Moore said. "They help. But we need the locals and the tourists to sustain us. We need the tourists to get us through the slow times."

"We do get a lot of repeat customers," he added. "Once people come and see how sweet and unspoiled we are, they do come back."

A little further up Elk Avenue, business is also slow at the Spin a Christmas Tale shop. Owner Victoria Castka blames the lousy economy for part of her store's financial woes.

But there is another factor impacting her business, she said. "The local government does not support businesses. For eight years, we've been struggling. This town is just not business-friendly."

The town council, for example, only allows cars in the winter to park on one side of the street — the side opposite Castka's store. She and her husband say they often see cars drive past her shop because they can't find a place to park.

Another example of the town's non-friendly business climate, Castka claimed, is its decision to close Elk Avenue for various festivals and town events. Whenever that happens, Castka says her business "slows down."

"Our business slows down," she told us. "We went to the town council and told them our concerns, but they didn't listen. Why would you plan an event during Spring Break when you already have a large number of people here? Why wouldn't you plan it for some other time to draw people to town?

"The town council needs to listen to business owners," she adds. "They need our tax money. But they are just not friendly to businesses."

Castka and her husband have made the difficult decision to close their shop at the end of the winter season and move to Gunnison.

"Cautiously optimistic"

Christi Matthews, president of Crested Butte's Chamber of Commerce is sensitive to Castka's concerns.

"I've been with the Chamber three years and one of my tasks (when I came) was to make sure the chamber existed to be an advocate for small businesses," President Christi Matthews say. "I know for a fact that there are members of the council who are concerned with our small businesses. And I'm confident the town manager and council are moving in the right direction to make a strong business environment."

Matthews, who was putting together a survey for businesses on this same issue the day she talked to ConsumerAffairs.com, said, "What I'm hearing, anecdotally, is our businesses are struggling right now. And they're not necessarily optimistic of change anytime soon."

"That's not to say they're being pessimistic," she adds. "But they're just not expecting any changes in the next 60 to 90 days."

Crested Butte, she said, doesn't have large corporations that have closed or laid-off people in recent months. It's a "second tier" community where the economic downturn is felt in store coffers in different ways.

"We don't see the immediate impact from a corporation cutting back or not giving its employees a commission or bonus," Matthews said. "Where we normally feel the impact is when those folks who used to come here for seven days, or spend a week or two here in the summer, now only come for two days because they've gotten laid off or lost their jobs. Or we might see people who are still trying to make the best of their experience here, but they may only buy dinner instead of dinner, appetizer, and dessert."

Despite the economic troubles, Matthews is "cautiously optimistic" the business climate in Crested Butte will improve.

"Our summer months are actually busier than winter," she says. "July is our busiest sales tax month. It was front page news the first time that July sales tax outpaced any month in the winter."

"Our small business owners try to make as much money as they can in the busy summer months to carry them for the other 9 to 10 months of the year," Matthews added. "And while we don't expect the next six months to be rosy, most businesses know they will make it through."

Back on the slopes — where it's not uncommon for skiers to find some runs all to themselves — many visitors echoed Matthews' sentiments.

"I know the economy is bad right now," one skier told ConsumerAffairs.Com. "I'm from Michigan, where the unemployment rate is 10 percent. But we've been coming here from years. This is a great place to ski. That's why we keep coming back."

The resort is trying to build on those positive sentiments. Crested Butte's management company, for example, worked with various airlines to make it easier to get this remote mountain community.

"This is a destination resort," Walton said. "You have to want to come here."

United, American, and Delta now offer direct flights — from such cities as Atlanta, Chicago, Denver, and Salt Lake City — to Gunnison, which is about 30 miles from Crested Butte.

The resort also offers several discount lodging and ski packages to attract visitors to the mountain. Walton is also counting on the busy summer season to bring in more visitors and revenue.

"Summer has become more and more a true season for us," he said. "Last September, we blew our budget out of the water. We want to build our summertime and make this a four-season area."

Until then, Walton says his resort is small and nimble enough to adjust to the tough economic times. "What we're doing now is trying to figure out ways to be creative and give skiers the best experience possible," he said.

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