Regional Economic Trends and a Summer Business Preview

I’ve been asked to pen a monthly column for the Vail Business Journal; it’s my goal to provide solid analytics as well as a bit of crystal ball gazing to provide value and information to the Vail Valley business community.

As we approach the summer season, it’s a good time to regroup and reassess what worked last winter and what opportunities might exist for us, as a business community and as business leaders in the Vail Valley, moving forward.

At the risk of stating the obvious, Mother Nature did us no favors this winter with historically low snowfall numbers. This of course also impacts our summer season with potential water restrictions and impacts on our summer recreation opportunities. However, our lodging occupancy numbers and sales tax collections are very positive compared to the snow – guests still came, and guests still spent.

Some economic trends in Colorado to be aware of:

Colorado metro area unemployment rates were little changed in March compared to February according to the Bureau of Labor Statistics.

Two metros had slightly lower unemployment rates, Boulder at 6.1% and Fort Collins at 6.7%. These are the two lowest readings among Colorado metros.

Colorado Springs, Grand Junction and Pueblo’s unemployment rates bumped up slightly to 9.5% in CO Springs and GJ and 10.7% in Pueblo.

Metro Denver and Greeley’s estimated unemployment rates were unchanged at 8.2% and 9.2% respectively.

Chief Executive magazine’s annual survey for Best & Worst States ranked Colorado #11, up from #12 last year.

Colorado employers added 2,600 payroll jobs in March, all private sector as government employment was unchanged.

Year-over-year employment (March 2011-March 2012) growth was 45,800 net (46,400 private sector minus 600 decrease in government).

Colorado’s unemployment rate in March was unchanged at 7.8%, still below U.S. average of 8.2%.

Source: Colorado Office of Economic Development & International Trade

Closer to home, some trends to consider:

Lodging occupancies for the summer months are trending positive

New special events are on the calendar for summer throughout the valley, helping to extend our summer season and create demand through the month of September

The 2011 Workforce Report (recently published at www.vailvalleypartnership.com) shows optimism from the business community

Real estate transactions in quarter 1 of 2012 are trending in a positive direction

The Vail Valley Partnership (VVP) is a regional leader in sustaining & enhancing the Vail Valley as a tourism destination and as a place to do business by contributing to the identity and economic wellbeing of the Eagle River Valley. The VVP takes a leadership role to bring groups, meetings, events and leisure visitors to the Vail Valley for the economic benefit of the community and our member businesses. The Economic Council of Eagle County assists with area research & economic development inquiries & promotion.

I can be reached at cromer@visitvailvalley.com, 970-477-4016 or at the Vail Valley Partnership offices at Traer Creek Plaza in Avon.

Chris Romer is the executive director of the Vail Valley Partnership and the Economic Council of Eagle County.