Steamboat Mountain Village Board Supports 2B

Steamboat Mountain Village Partnership Board supports Referendum 2B for Air Service

The Board of Directors of Steamboat Mountain Village unanimously voted to support the passage of Referendum 2B which will go a vote of the citizens of Steamboat Springs by mail.  The referendum will be mailed to all Steamboat Springs registered voters on October 11.  Referendum 2 B authorized an additional ¼% in local sales tax to supplement the air service program for non-stop winter air service to Steamboat Springs. 

As community members and business owners we all rely on tourism. Each airline passenger represents approximately $1,100 in local spending by tourists. A reduction in that spending will result in less sales tax collections which fund city services and amenities that our community has come to expect.

A decline in airline seats also means fewer jobs in the community. Every 9,200 passengers generate 100 new jobs in the community. Winter airline seats into Steamboat have been reduced by more than 26% since 2007/08 which equates to over 44,000 seats. Without additional funding provided by 2B, winter airline seats are projected to decrease by 50% from 2007/08 levels within two years.

Referendum 2B raises critically needed funds to guarantee airline service to the Yampa Valley Regional Airport, strengthening our economy, securing local jobs and protecting our quality of life.  As a result of dramatically increased costs and the recession, our air service has decreased over the last three years by nearly 30%.  If this trend continues, the adverse economic results to all of us will be significant.  2B is needed to reverse this trend and ensure that Steamboat remains a premier vacation destination.

Air service is one of our community’s most important economic drivers.  It serves not only visitors, but also local residents and their families, and location-neutral companies and individuals throughout the region. The reality is that airlines will not provide regular, consistent and sufficient non-stop air service to a smaller community like Steamboat Springs unless a certain level of revenue is guaranteed. Currently, the voter-created Local Marketing District (LMD), in partnership with Steamboat Ski & Resort Corporation (Ski Corp.), oversees the air service program with approximately half the funding collected from a 2% lodging tax and the “Fly Steamboat” program and the other half provided by Ski Corp.  While the amount committed by Ski Corp. has increased, collections from the LMD lodging tax and “Fly Steamboat” have decreased and a gap in funding of roughly $1 million needs to be met.  2B will meet that need, and then expire in five years.  

Without reliable non-stop air service, Steamboat will be less competitive with other resorts and our vacation-based economy will suffer.  Funds generated from 2B, together with funding from the LMD and at least $1.1 million per year from Ski Corp., will be dedicated to regaining this vital air service.

It currently costs less than $30 to subsidize a seat for a single passenger who will spend roughly $1,100 while here.  

Referendum 2B is a wise investment to protect local jobs today and grow the economy tomorrow.

Please support Referendum 2B.  Encourage your employees and your friends to do the same. This small sacrifice on our part, being spread across the entire community and to all of our guests, is a small price to pay. 

On behalf of the Steamboat Mountain Village Board of Directors, thank you for your careful consideration of this matter. 

Katie Brown

President, Board of Directors

Steamboat Mountain Village Partnership