Colorado Mountain Towns Grapple with Tourism Decline

Introduction

Recently, Colorado's Western Slope, known for its picturesque mountain towns and ski resorts, has experienced a troubling trend as international tourist numbers drop, bringing challenges to local economies heavily reliant on tourism.

Decline in Visitor Numbers

As of mid-2025, the tourism landscape in Colorado shows signs of significant change. Following a period of record-breaking visitor numbers—95.4 million in 2024, contributing approximately $28.4 billion in spending—the state is witnessing the first downturn since the pandemic. A notable 2% drop in hotel occupancy rates and a strong 10% decrease in short-term rental bookings during the first quarter of 2025 highlight a shift in travel dynamics, particularly affecting the Western Slope region.

Changes in Spending Patterns

While ski resorts continue to attract visitors, their numbers—13.8 million in the latest season—are lower than previous years, contrasting sharply with the growth experienced over the last decade. The international market share has been particularly hit hard, with travelers from regions like Canada, Europe, and Australia choosing other destinations instead. This is fueled by a shift towards short, single-day trips primarily from the Front Range area, leading to decreased economic benefits for mountain towns that thrive on sustained tourist visitation.

The Economic Impact of International Visitor Decline

International visitors typically stay longer and spend significantly more than domestic travelers—up to five times more per day. Their dwindling presence is felt acutely in local economies. For instance, a sharp 58% decrease in bookings from Canada illustrates a critical gap in revenue for mountain towns. Factors such as changing travel preferences and political uncertainties have diminished the attractiveness of American destinations, prompting international travelers to seek alternatives.

Domestic Travelers vs International Tourists

Interestingly, while domestic day-trippers may have increased the total number of visitors, their expenditure is markedly lower, averaging around $105 per day. This is a far cry from the nearly $600 spent by longer-staying visitors, emphasizing the economic strain felt by local businesses that depend on higher spending from international tourists.

Resilience of Mountain Towns

The challenging season of 2024-2025 has seen mountain towns witness a minor decline in taxable sales, down just $2 million compared to the previous year. Despite this, they still achieved a remarkable 48% increase in sales compared to the pre-pandemic 2018-2019 figures. However, the decrease in tourist numbers shines a spotlight on ongoing concerns for sustained economic growth in these areas.

Strategic Responses to Declining Numbers

In light of the decreasing tourist numbers, local businesses have been raising room rates by about 4% to counteract losses. Yet, this tactic carries the risk of alienating budget-conscious travelers who might seek out destinations with more affordable lodging options. Furthermore, local governments are imposing stricter regulations on short-term rentals to alleviate the housing market strain, which could further deter budget travelers who make up a significant portion of Colorado's tourism demographic.

Domestic Economic Effects

Tourism remains a crucial driver of employment in Colorado. In 2024, jobs related to tourism saw an increase, adding 3,720 new positions, reaching a total of 188,210 jobs. This employment surge mirrors the resilience of the industry in challenging times. However, with variable domestic spending patterns, areas like Silverthorne have started scaling back on planned expenditures, pondering the long-term viability of tourism as a robust economic contributor.

Adjusting to New Realities

Given the shifting tourism patterns, Colorado's mountain towns must recalibrate their focus from merely increasing visitor volume to enhancing service quality. Attracting long-staying, high-spending tourists is now a priority, and with international visits still facing hurdles, the tourism sector is at a crossroads, needing a balanced approach that benefits both residents and visitors alike.

As Colorado's mountain towns navigate through these challenges, it’s important to consider the long-term implications of shifting tourism trends. GetBoat.com is always keeping an eye on the latest tourism news, ensuring travelers stay informed and connected with emerging trends and opportunities in the industry. Understanding these dynamics can help shape the future of both tourism and local economies within these stunning regions.