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Tourism numbers show promise

by Alex Violo/Valley Press
| June 20, 2014 12:12 PM

SANDERS COUNTY – As the days grow longer and the temperature warms, out of state visitors are beginning to make their way to destinations in and around Sanders County.

The summer season provides a boon for small businesses across the County as large numbers of tourists come to explore the natural wonders of western Montana.

“Sanders County has so much to offer resident and non-resident travelers alike,” Executive Director Racene Friede of Glacier Country Tourism said.

Friede pointed out many of the visitors to the counties across western Montana are in-state travelers, a number boosted by the wide expanse and impressive variety of terrain to be found within the state.

Sanders County experienced a very strong tourism year throughout 2013 and early reports, available from first quarter data indicate 2014 will be another productive season.

One of the main groups that tracks the impact visitors have on communities across the state is the Institute for Tourism and Recreation Research of the University of Montana, College of Forestry and Conservation.

ITRR was created in 1987 and serves as the research arm of Montana’s tourism and recreation industry.

ITRR’s numbers from 2013 are from a relatively small sample size, but still point to the impressive amount of capital brought into the region by visitors.

A rough estimation pegs the total number of dollars brought into Sanders County by non-resident visitors in 2013 at around $10 million throughout the course of the year.

The highest percentage of this total, roughly $3.2 million and 31 percent of the total was spent on fuel, while $3 million and 28.8 percent of the revenue went towards outfitter and guide services within the county.

Restaurants and bars brought in an estimated $1.5 million, 14.8 percent of the total and spending on groceries and snacks totaled $859,000, 8.2 percent of the total expenditure of out of state visitors.

Hotels, motels, and bed and breakfasts also pulled in an impressive total, with estimates placing the total at nearly $813,000, 7.8 percent of the 2013 total.

The impressive amount of money being pumped into Sanders County is a product of the state’s aggressive efforts to increase visitors to various portions of the state.

“What makes us unique is not just our natural resources but the people and quality hospitality we provide,” Friede said.

A major way all the money raised by Montana’s robust tourism industry gets back to local communities, including those in Sanders County is through state Lodging Sales Tax and Lodging Facility Use Tax.

Commonly referred to as the Bed Tax, the levy was created by the Montana legislature in 1987 in recognition of the vast importance of tourism to the state economy. The original tax was a 4 percent levy collected by lodging facilities from guests.

This money goes towards funding various state entities including the Montana Heritage Commission, the Department of Revenue, state parks, and the state university system to name a few.

Daniel Iverson of the Public Information Office at the Montana Office of Tourism noted a portion of the funds goes back to localized tourism operations across the state.

In 2003, an additional 3 percent levy, the lodging facilities sales tax, was added to the 1987 tax, and the additional funds collected by lodging businesses are directed towards the state of Montana’s general fund.

Iverson added 2013 was a big tourism year as it marked a return to the high levels of visitors who travelled to Montana before the recession of 2008.

“We had a little dip during the recession, but as of 2013, we had visitation higher than pre-recession levels,” Iverson said.

Despite only being half way through the year, initial reports point to another big summer for the tourist industry of Montana.  

Lodging facilities and recreational outfits are reporting good numbers and impressive total of reservations.

“We anticipate another strong year in 2014 with similar numbers. Businesses are reporting strong reservations across the state,” Friede said.