Mike Bennett, the city manager of Fruita, Colorado, was camped out at 18 Road, a popular mountain-bike trailhead, when I called him on a Tuesday morning last spring. Over the howl of desert wind, he told me that the place was pretty much empty. 鈥淚鈥檓 staring around in the dispersed area, there鈥檚 no one here,鈥 he said.
Spring is usually a听high season for this听western Colorado town. Bikers flood the area after ski resorts close听and before听temperatures spike. Bennett says they鈥檝e historically seen a 25 percent rise in sales-tax revenue each听spring and听fall, thanks to visitors. And over the past few years, as the area has focused on recreation, that revenue has gone up a further 12 percent听year over year.
But in 2020, as COVID-19 cases climbed across the country, Fruita听and other outdoor hot spots across the West began听telling people not to come, shutting off the valve to tourism. While some businesses like bike shops stayed busy with locals, lodging revenue dropped by more than half, hitting the city鈥檚 bottom line.听
Fruita听has grown to count on a booming outdoor recreation economy after shifting away from the bust of oil and gas (when oil- and gas-industry prices dove in 2014, the result of听a sales-tax revenue in Fruita dropped 90 percent)鈥攁nd it isn鈥檛 alone in its dependence on tourism. But听the pandemic and economic fallout that followed are both making it clear that recreation, which is , is volatile, too, reliant upon听unsteady markets and personal whims.
Megan Lawson, an economist who leads outdoor recreation, economic development, and demographics for Headwaters Economics, a nonprofit think tank that looks at economics and land use, says that recreation towns are triply sensitive to the impacts of the pandemic. Fruita鈥檚 Mesa County has been relatively healthy, but across the country, recreation counties听suffered听COVID-19 than non-recreational rural counties, because they鈥檙e hubs for travelers听and full of essential workers. A lot of those places are already deeply unaffordable, and residents are barely making enough to pay for housing when they鈥檙e healthy and work is busy.
And now, because they鈥檙e so often dependent on a single-source seasonal economy, across the country are suffering. Lamoille County, Vermont, home to ski areas Smugglers鈥櫶齆otch听and Stowe, saw unemployment rise to听25.4 percent听in April after the听ski season abruptly shut down听the month before. That same month,听in Cheboygan County, Michigan, where boating and fishing drive business, unemployment was a dismal 41.2 percent, the highest in the country. Simultaneously, Grand County, Utah, home to Moab, a destination听often held up as the model for a thriving recreation economy, was at 26.9 percent unemployment.
There鈥檚 a long history of rural areas relying on one unstable source of income听and on the desirability of natural resources. In places from Appalachian coal country to western oil and gas towns, the outdoor industry was supposed to be a sustainable alternative to extraction. But in the face of crisis, the narrative about the stability of tourism is proving to be false. 鈥淚 think the analogue to the extractive economy is dead-on,鈥 Lawson says. 鈥淚 don鈥檛 want to be doomsday, but it is bleak right now, so we have to think about outdoor recreation as another economic specialization that鈥檚 vulnerable to boom-and-bust听and think about long-term diversification.鈥
No one was particularly well prepared for a pandemic, but the tourism industry, with its dependence on visitors and discretionary spending, is highly vulnerable. 鈥淚n the national unemployment numbers, a lot of this is being focused in the service industry,鈥 Lawson says. 鈥淗ospitality, restaurants, hotels, guiding services all took the initial hits, then economists were听predicting ripples that spread through the economy.鈥
The ripples are where vulnerability gets tricky in tourist towns. Tax revenues that听fund things like hospitals and social services come from local sales, so听when visitors don鈥檛 come, it impacts more than just the hospitality industry. In Fruita, Bennett says the community is split between two听fears: opening too quickly and staying closed.听
Jordan Smith, director of the Institute of Outdoor Recreation and Tourism at Utah State University and cofounder of听the new Gateway and Natural Amenity Region Initiative, created to bring recreation-gateway towns together to share tactics, says there鈥檚 no single good answer for how to deal with听this pandemic听and how to make outdoor towns more resilient in the future. It鈥檚 forcing hard conversations听about ways听to diversify their income streams. They have to acknowledge that recreation is not a panacea听and that there are hard things that come with the outsize听power of visitors there for the outdoors.
鈥淭ourism is boom-and-bust, and this is the first time it has been bust in those communities for a long time,鈥 Smith says. 鈥淪o many wanted to move into recreation as fast as possible, they didn鈥檛 put as much thought into what that might mean long-term or the resilience of their economy when something like that happens.鈥
Smith says such towns听have to diversify and build up secondary economies. The places in their network, from Page, Arizona, to Park City, Utah, have seen that they can鈥檛 just play off parks听or wilderness. The pandemic has shown that the things that make those destinations听appealing, like lack of industry听and minimal infrastructure, are also what make听them fragile. On the upside, the pandemic has created pathways to economic听diversity听by highlighting the value of remote work and the idea that cities don鈥檛 necessarily need to be the nation鈥檚听sole economic hubs.
An hour south of Fruita, in another western Colorado town that鈥檚 moved away from extraction, a more diverse outdoor economy has held up. Montrose has found ways to address immediate needs听and to be stable in the longer term.
Chelsea Rosty, the city鈥檚 director of business innovation and tourism, says that when COVID-19 hit, Montrose听pivoted funds previously earmarked for tourism into zero-interest loans for small businesses, which helped stanch the fallout of lost income.
The city already had a to pull in outdoorsy businesses, like fly-fishing gear manufacturer , and to target companies that might be swayed by outdoor access when deciding听where to set up shop. Rosty says that now the city is investing in housing and hiring local contractors to听help with听the听recovery. Montrose has also formed a regional collaboration with nearby towns like Ouray听in an听attempt to convince听residents to travel locally and inject outside dollars into small towns.
There are pains that come with growing and changing, like wage gaps and housing shortages, and like Smith says, there鈥檚 no single answer that works for everyone, but a lot about Montrose鈥檚 plan is replicable: invest in the area around you, don鈥檛 be precious about听the places you love, and听be amenable to change.