News and Opinion from Sisters, Oregon

Sisters tourism weathering economic storm

Sisters' tourist economy is seeing some glimmers of light in the gloom of a deep - and likely prolonged - recession.

Sisters' room tax revenues declined by 13.3 percent in the first quarter of 2009. That might sound like bad news, but it's not being taken that way in the local business community.

That's because Sisters' decline is much less steep than it is for others in the region: Bend's room tax revenues for March are off by 28.2 percent, and Deschutes County as a whole is down 22.7 percent from March 2008.

That's on top of Bend's drop of 17 percent in January, 23 percent in February, and Deschutes County's 17 percent January decrease and a 32 percent plunge in February.

Room tax revenues are levies assessed on each night's stay at a motel or hotel. The revenue is used to fund municipal services and is also usually plowed back into efforts to promote tourism. The Sisters Area Chamber of Commerce receives room tax revenues from the City of Sisters to fund its tourism promotion efforts.

"It says to me that we're ahead of the game," said Erin Borla, Executive Director of the Sisters Area Chamber of Commerce. "Sisters is poised to be in good shape for the summer. We have a really unique product, and it's a great place for 'staycations.'"

Borla believes that Sisters can actually capitalize on an anticipated overall decline in summer travel by encouraging tourists to visit Sisters as a relatively low-cost alternative to destinations that require air travel.

Paul Haggerty, manager of the Best Western Ponderosa Lodge, told The Nugget that the lodge held its own nicely in the first quarter of this year.

"We were off slightly," he said. "We were down maybe three to four percent."

A strong spring break that lasted three weeks due to different school scheduling, and good winter recreation conditions helped. But Haggerty says that new marketing endeavors made the biggest difference. His establishment is part of a cooperative group that includes FivePine Lodge, The Lodge at Suttle Lake, Lake Creek Lodge, Black Butte Ranch and Best Western Ponderosa Lodge.

The properties engage in joint marketing that helps spread expenses and share promotions.

"Since we've started doing that, it's given us a big boost - or at least allowed us to maintain our levels," Haggerty said.

One promotion offered $100 gift Visa cards for a three-night stay. That, Haggerty said, infused some activity into the Sisters economy.

"We were able to put $25,000 back into the community, hopefully, with (guests) using those cards," he said.

Sisters business are still feeling the pinch of hard times. Restaurants and eateries are waiting for summer tourist traffic to make up for a loss of local traffic as people cut back on dining out. Retailers, too, are hopeful that summer traffic will keep the cash registers ringing, as Sisters depends on a strong tourist season to carry the rest of the year.

Some retailers reported that they are down from what a typical May would be, but are happy to be "hanging in there" with prospects for a decent summer.

Some businesses are reporting gains in the first quarter.

"Our business is up this first quarter," said Jean Wells of Stitchin' Post. "I really think that last year was the year of the recession for us, with construction nonexistent and gas prices going up. People seem positive about being in town and really want to move on from the doom and gloom in the media. We have had excellent attendance in our workshops, and our workshops for the summer quilt show filled up faster than last year. We are at 90 percent capacity."

Teri Applegarth of DonTerra Artworks has expanded her gallery. "Our success primarily is to provide a positive, fun and inviting retail location for customers to feel welcome and appreciated," she said. "We hear all the time that our gallery feels good. Our prices are reasonable and made by local artists, not made in China. We offer many options and price points, something for everyone."

The housing market remains soft, though there are signs that it is stabilizing. Construction remains very slow. But the tourism economy may be in better shape than many feared in the depths of winter as bad economic news poured down like an icy rain.

Borla thinks so. She believes that marketing efforts and business-strengthening actions forced on the community by the recession will keep the community going through the hard times and will bear fruit when the downturn abates.

"We're poised to ride this out and come out ahead," she said.

Author Bio

Jim Cornelius, Editor in Chief

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Jim Cornelius is editor in chief of The Nugget and author of “Warriors of the Wildlands: True Tales of the Frontier Partisans.” A history buff, he explores frontier history across three centuries and several continents on his podcast, The Frontier Partisans. For more information visit www.frontierpartisans.com.

 

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