Whitefish Sustainable Tourism Management Plan Standing Committee

Sustainable Tourism Management Plan Standing Committee November 21, 2023 @ 2:00 P.M. City Council Conference Room Agenda Meeting Link – for those attending remotely Meeting ID – 282 864 739 562 Passcode – 7AiTBq Call in # - 1-406-426-9898 233655604# 1) Call To Order 2) Approval of October 17, 2023, Minutes 3) Focus group follow up 4) Residential survey discussion 5) Short Term Rentals discussion 6) Community Market Profile draft 7) Community meeting discussion 8) Public Comment 9) Next Meeting December 19, 2023 10) Adjourn  Sustainable Tourism Management Plan Standing Committee October 17, 2023 @ 2:00 P.M. Minutes 1) Call To Order Brian Schott, Chair, opened the meeting. Members present were Mariah Joos, Ella Kobelt, Nick Polumbus, Elizabeth Colley. Heather Cauffman and Mark Pascoli were absent. Also in attendance was Julie Mullins, Executive Director if Explore Whitefish, Kate McMahon – Applied Communications, and Alan Tiefenbach, Long-Ranger Planner. 2) Approval of September 9, 2023, Minutes Mariah made a motion, seconded by Nick to approve the minutes. The motion carried. 3) STMP Update a) Introductions b) Survey Update (899 surveys as of 10-9-2023) Kate reviewed the results from the community survey. Kate’s notes are provided in the attachment. c) Growth Policy Update & Discussion on Coordination (Alan Tiefenbach – Long Range Planner) Alan Tiefenbach, Long Range Planner, provided update on the Vision Whitefish 2045 Growth Policy. To keep updated visit the Engage Whitefish, https://engagewhitefish.com/vision-whitefish-2045 . Alan suggested members of the committee to attend the public meetings for the Vision Whitefish process. Kate’s notes are provided in the attachment. d) Whitefish Market Report (Explore Whitefish – Julie Mullins) Julie presented the Whitefish Market Report. Kate’s notes are provided in the attachment. e) Focus Group Planning https://docs.google.com/spreadsheets/d/1Nz5IIyM1PjQqeeIbzGUcz2Of8WWqhI_LZXn91F PPVLk/edit?usp=sharing The committee reviewed the focus group list and schedule. Kate’s notes are provided in the attachment. 4) Public Comment None 5) Next Meeting November 21, 2023 6) Adjourn The meeting was adjourned at 3:53pm.  Whitefish Sustainable Tourism Committee Meeting Notes 10-17-23 In Attendance: Brian Schott, Nick Polumbus, Liz Colley, Julie Mullins, Michelle Howke, Mariah Joos, Steve Kane, Ella Kobelt, Allen Tiefienbach, Kate McMahon 1. Growth Policy Update • Allen Tiefienback from the Planning Dept. presented on the Growth Policy and reviewed new MCA requirements. • An existing condition report and mapping is underway. The city is hring an economic deelopment consultant and will reach out to the STMP committee for this element as well as the housing element. • The city will be conducting visioning sessions with the community. This may be an opportunity for the STMP committee to piggy back on these meetings. • It was discussed that the Growth Policy is more focused on long-term planning while the STMP is considering more short-term strategies. Also the the Growth Policy makes recommendations on land use and regulatory policies while the STMP includes more programmatic and outreach strategies. • There was discussion on short-term rentals. Allen explained that STR’s are only allowed in certain zoning districts and they will be looking at other options for regulating and enforcement. This is a top issue in the Growth Policy and will likely be addressed in the next legislative session. The STMP Committee could monitor legislative proposals and possibly take and advocacy role. • The committee discussed the importance of community character and referred Allen to the section in the STMP plan that defined elements of community character. They also noted that the STMP plan had detailed estimates of summertime population that could be a useful baseline for Allen in making projections for the Growth Policy. 2. Survey Results • The community survey closed on October 15 and had 912 online responses. Michelle noted that there are about 50-60 paper surveys that need to be entered. • Kate reviewed the summary of online reponses. These will be updated when datea entry for the paper copies is completed. • Mariah volunteered to conduct an analysis on the written comments for the next meeting. Kate will send her a spreadsheet of the written comments. • Some key findings from the survey: o Only about 30% of respondents agreed with the statement that the benefits of tourism outweigh the negative impacts. This was down from 62% who agreed with the statement in 2019. o The resort tax ranked the highest as a benefit of tourism. o Traffic and short term rentals ranged as the greatest concern among respondents. o Whitefish Mountain Resort and general outdoor recreation were the most important assets. 3. Explore Whitefish Marketing Report • Julie Mullins presented the data from the CVB market report. Data is primarily from Smith Travel Data and AirDNA. • STR bookings drop off significantly in the off-season. In November only 8% are booked. • Visitation is down from pandemic peak. • The discussed the need for a balance between the supporting businesses in the off-season and desire for residents who enjoy a break in the tourist crowds. The plan should look at best paractices for coordinating with the seasonality of visitation. CVB has a committee looking into this. 4. Focus Group Planning • The Committee discussed the schedule for the focus group meetings and agreed to have one meeting at the Black Star Brew House to attract the young adult demographic. • Kate encouraged the STMP Committee to add names and email addresses to the stakeholder spreadsheet on Google Drive. 5. Updates/Next Meeting • Michelle shared information about the housing grant that the city is applying for and encouraged committee members to send email comments to her by Oct. 30 • The next meeting is November 21 @ 3:00 pm. Discussion items will include: o Report on focus groups o Data profile chapter o Summary of survey comments o Goals and strategies discussion, … Meeting adjourned at 5:00 pm  Whitefish Sustainable Tourism Management Plan 11-8-23 In Attendance: Kate McMahon, Brian Schott, Steve Kane, Erin Libair, Elizabeth Wood, Dierdre Cook, Liz Calkins, Mark Pascoli, Nathan Dugan, Karin Hilding, Alan Tiefenbach Trends  People want to move here. Often, they are regular visitors and then move.  Visitors are surprised that there are no more recycling options.  Last year there was a rental car shortage. Visitors ask about transit service – especially from the airport. Hotel shuttles and shuttle services are options.  Mountain Climber is exploring options for an airport and Glacier Park connection.  Visitors generally have positive comments about the GNP reservation system. There were more complaints about congestion before the reservation system was in place. There are still options for accessing the park after 3:00 pm. But there is congestion around this time.  There needs to be more advertising of options with outfitters/guides that can get you in the park.  There are significant groups of people without transportation that can’t get into the park or who don’t have computer/internet access and can’t get reservation.  Businesses still have staffing issues. Related to employees that can’t find housing. Muldown elementary school has vacancies due to staffing shortages.  Short term rentals and housing costs are making housing unaffordable. The cost of housing more than doubled over last three years. Rents are high. People can’t afford to move here.  Short-term rentals generate an average of $8000 a month. This is significantly higher than what a landlord can get for a long-term rental.  The legislature has revamped planning laws and limited the tools localities can use to address housing issues.  Businesses are relying more on foreign workers and senior citizens to meet workforce needs. Strategies  Resort tax should not be refunded to second home owners.  Help book or directory to help residents become aware of housing programs and initiatives. There are multiple non-profits and agencies addressing this issue and it is difficult to navigate programs.  Incentivize landlords to offer long-term rental units. Subsidize housing so can be offered below market.  Higher fines for illegal short-term rentals. Have a limit on the number of short-term rentals in city.  Collect best practices and lessons learned from other communities that have addressed housing issues (i.e. land banking….)  Mountain Climber is looking into a tri-city commuter route. State has a grant to establish a pilot. Mountain Climber would need to come up with a match. Potential transfer points include the airport and Amtrak (grant requires multi-modal component). Would like to establish next summer. Routes would serve both residents and visitors. Need ideas on the match and need input from employers on best hours of operation. A survey would be very useful. Need to identify best way to conduct survey – potentially contract out. Resources  Look at other communities for best practices on recycling and transit There should more education on recycling options.  Whitefish Sustainable Tourism Management Plan 11-14-23 In Attendance: Kate McMahon, Brian Schott, Kevin Gartland, Luke Sponable, Jenna Boltz, Rhonda Fitzgerald, Dakota Whitman, Robin Paone Trends  Short-term rentals should be added to the list of major changes since the last plan update.  Negative attitudes of residents regarding benefits of tourism  Glacier National Park vehicle reservations have skewed the visitor profile to people who live nearby. Destination visitors are less likely to visit because they don’t want to commit significant travel dollars and risk not be able to get into Glacier Park. The visitors that are coming now are lower value customers and don’t stay as long.  Whitefish is not a winter ski destination such as resorts in Colorado and Utah. For example, Alaska Air does not include Whitefish as part of its winter ski promotions. On the other hand, being an independent ski area in an authentic community is an asset.  GNP keeps changing the rules for a reservation and this makes it confusing and difficult for visitors. There has been less traffic at the Chamber of Commerce visitor center and the Chamber is getting fewer inquiries because people don’t want to risk the cost of a trip if they can’t get into the park.  When the park is open at 3:00 pm without a reservation, there is congestion on Hwy 2.  New residents that have bought homes are going out less because the novelty has worn out.  The airport needs more long-term parking due to part-time residents leaving their cars at the airport while they are gone for extended periods.  Town punches above its weight. Feels like a bigger town due to events.  Housing prices have skyrocketed, and this is a big threat to the area’s authenticity. The younger demographic is priced out and now live in Columbia Falls and Kalispell. These towns now have more a nightlife to appeal to younger crowds.  Businesses are looking at using more international workers to meet workforce needs.  Small businesses owners can’t afford to live in Whitefish. As a result, more corporate owned businesses and less local flavor. Strategies  Whitefish needs to build homes that are below market. Need some mechanisms to keep prices down. These might include deed restrictions, housing trusts, incentives, land banking, ….  Shelter Whitefish is more of an advocacy group and has focused on increasing density to provide “Missing Middle” housing.  Sustainability – recycling. Need education to counter the feeling that recyclables are just ending up in a landfill and not worthwhile. Visitors to Montana are surprised about the lack of recycling options. Need to figure out a solution.  Transportation – Promote walkability, bicycling and different ways to get around town.  Mountain Climber is exploring alternatives to provide fixed bus routes that would help employees and visitors get around the county. They need data from employers on preferred hours of operation, routes and support for a system. The Chamber would be willing to help with a survey.  If transit is going to work, need a critical mass of riders, federal subsidies, incentives to take transit and disincentives to get people out of the car. Transit system should coordinate with the GNP.  Support Snow Bus. It is a successful example of transit in the county. Resources, grants initiatives  Earth day in April may be a good opportunity to have a panel discussion on Sustainable Tourism. Coordinate with Citizen’s Climate Lobby  Climate Action Plan Committee is spreading the word on opportunities with the funding from the Infrastructure Investment and Jobs act – especially as it relates to energy efficiency.  Shelter WF is undertaking education on how the housing system works and how people can get more involved.  Short Term rental issue is on City Council agenda on Monday night to address registration and enforcement.  Heart of Whitefish Downtown Plan has been a successful guide to downtown development. There are still recommendations to connect the bike-ped system that need to be implemented. A second parking garage may be needed. Look at grants for EV chargers.  Glacier Country Tourism Region has recently adopted the Destination Stewardship Plan and is working with the state on its resiliency plan. They want to work with communities in the region to assess their needs and advocate for the communities. The stewardship plan has more of a focus on the residents.  Coordinate with Mountain Climber on transit that will serve employees. They are the only agency in the county eligible for federal funds.  Homebuyer education – Community Action Partnership, Housing Authority and other non-profits have programs. Need to make people more aware of these opportunities.  Whitefish Sustainable Tourism Management Plan 11-15-23 (Tap House – Young Adults) In Attendance: Kate McMahon, Brian Schott, Colton Burke, Sophie Burke, Madeline Axtell, David Moerch, Forrest Kobelt, Gracy Young, Murphy Wick, Brad Thompson, Ian Fleming, Miranda Hernandez Introductions  Lived in Whitefish for 3 years. Remote worker. Biggest change - Increase in housing prices, not affordable.  Works for Tech company – hybrid remote/in-person. Tourism keeps the town alive but doesn’t like the crowds. Enjoys all of the mountain activities. Short-term rentals (STR) have a negative impact. Housing is so expensive, no change for young people to move here.  Works or non-profit. Came to listen and learn how to get involved.  Works for Parks & Rec. Grew up in Whitefish. Tourists are staying-moving here and driving up costs.  Moved to Whitefish 15 years ago when my family moved here. Graduated from WF High School. It was a cool ski town when moved here but is changing. Works at restaurants – ski bum.  Remote worker. Grew up out east but came here for vacation. Biggest concern – housing costs.  Teacher and bartender. Moved to Whitefish for skiing. Would like to buy a house but it is too expensive even for a married, two-income household.  Lives in Columbia Falls but works in Whitefish at the distillery. Is starting a business in Whitefish. Would like to live in Whitefish but housing is too costly. Starting a business in Whitefish is too costling. Used to live in Vail and no employees can live there. Town empties out when employees go home and becomes a shell of a town. Doesn’t want that to happen in Whitefish.  Lived in Whitefish for 4 years. Moved around to different ski towns and ended up in Whitefish. Guide & ski patroller. Housing costs are the biggest issue.  Works at Native Plants 9-months out of year and then goes home for a few months. Wants to get involved and meets with a group of young people that want to get involved. Trends - Challenges  Largest share of tourist from Texas, California and Canada. Whitefish has been “discovered”. Just a few years ago Whitefish was still under the radar. The “Under the Big Sky” festival has brought more people in. The festival attracts young people.  Glacier National Park is still the biggest attraction for tourists. They are not really interested in exploring other opportunities (Flathead Forest ….) Locals are more likely to go to the Cabinet Mountains, Ten Lakes and other places when Glacier gets crowded.  The reservation system is turning some people away. The system is better at managing crowds, but locals don’t like it and feel entitled that they should be able to visit the park anytime. The recent changes might work better.  There are too many people that are coming here just make money and exploit the town. (i.e., Short term rentals, contractors building trophy homes, realtors…)  Need to answer, “What is the Soul of the town” and preserve that. Don’t want a place where all the employees leave at night because can’t afford to live here. Housing  Snow Lot is a good example of creating affordable – below market homes. Partnership between city, non-profit, housing authority….  Trail View has deed restricted townhomes but even at $400,000 it is still not affordable for most households.  Missing middle is big issue – make too much to qualify for programs but not enough to purchase home.  Housing in other ski towns in Colorado, Utah, Idaho is still more expensive.  The cost of building is so high that it is not possible to build affordable market rate homes. Need discussion on how to address this.  There are a lot of illegal STRs in neighborhoods. They drive up costs and kill the neighborhood character because houses are empty on off-season and don’t have neighbors/residents that care about community.  Enforce STR regulations and put a cap on the overall number that will be allowed in the community legally.  Look at homeowner association regulations. Do these permit STRs or allow ADUs  Contractors are in short supply so they can charge a premium rate, and this drives up the cost of housing. Contractors are maximizing what they can charge to increase profit margin.  Need to disincentivize STRs so they become less attractive to rent out. Higher registration fees, fines,  Zoning for multi-family doesn’t work if all that gets built are luxury townhomes/condos that are used as a vacation home for 2-4 weeks out of the year.  Does tax structure encourage 2nd homes? Is there a way to tax and use funds for affordable housing?  Most landlords are ok that they have dealt with. Some landlords will not accept housing vouchers. Many leases are 8-months (October to May) and then renters don’t have housing options in the summer.  Rents are high. $3500 a month for a 4 Bedroom home in Happy Valley.  Need to publicize more info on housing programs. Housing vouchers are good but there are long waiting lists.  The first-time homebuyer program only applies for lower income. FHA mortgage doesn’t work if the house is worth more than $650,000 and then must have 20% down payment. Few homes, if any in Whitefish qualify and few young adults have 20% down payment. Other Issues  Health care costs. Many jobs don’t provide coverage, and this is a worker recruitment issue.  Mental health is an issue.  Need the infrastructure to support a resort town.  Transit is needed between C. Falls, Kalispell, and Whitefish. Would take a bus if it was reliable and had a convenient schedule. Would need evening hours for restaurant workers. Need to run more frequently.  Some restaurants will close during the off-season because would lose money otherwise. Staff lose income during this time and need to figure out how to manage that.  Buffalo Café offers insurance and retirement. Need these perks to keep staff. Some places give employees a bonus at the end of summer to get them through until they can reopen.  Don’t go downtown in summer due to crowds but off-season and winter are good times to go downtown. Still close to the ski area and young people still enjoy it. C. Falls is becoming hipper but if grew up in Whitefish, still prefer Whitefish downtown.  Want to stay engaged – involved. Be part of solution.  1 STMP MARKET PROFILE I. Socio – Economic Information A. Population Trends While the growth rate for Whitefish has historically been between 1.5% to 2% per year, from 2020 to 2022, the growth rate for Whitefish averaged 7.5%. This was among the highest rate of growth in the State and in the County. Construction permit activity significantly decreased in 2020 indicating that growth rates may return to historic levels. Table 1: Population Trends Location 2010 2020 2022 2020-2022 (Estimate) % Increase Whitefish 6,357 7,746 8,915 15.1% 59937 12,588 14,354 14,158 14.0% Flathead County 90,928 104,349 111,814 7.2% Montana 989,415 1,084,225 1,122,286 3.6% Source: U.S. Census, Census of the Population & American Community Survey B. Demographics Compared to the county and state, Whitefish has a smaller share of family households and owner-occupied households. Average household size is Whitefish is also significantly lower than the county. Table.2 – Selected Population & Household Statistics Statistic Whitefish Flathead County Montana Median Age (2020) 41.5 42.2 40.1 Average Household Size 2.21 2.51 2.41 Family Households 47% 66% 61% Owner-Occupied Households 62% 75% 69% Source: U.S. Census, American Community Survey (2017-2021) C. Per Capita Income Per Capita income levels in Whitefish are significantly higher than both Flathead County and Montana. Figure 1: Per Capita Income Montana $34,423.00 Flathead $34,897.00 Whitefish $52,280.00 Source: U.S. Census, American Community Survey (2017-2021)  2 D. Labor Market – Annual Unemployment Rate The annual employment rate for Flathead County is 3.1 percent compared to 2.6% for Montana. A rate less than 5% is an indicator of a tight labor market. Unemployment is lower than pre-pandemic levels. Figure 2: Unemployment Rates – Flathead County Source: Montana Dept. of Labor and Industry, https://lmi.mt.gov/LocalAreaProfiles E. Business Profile – Whitefish The health sector and businesses related to the tourism economy are the leading employers in Whitefish. Table 3 Leading Industry Sectors in Whitefish Industry # Business # Employees Health Services 55 1,175 Eating & Drinking 59 817 Retail Trade 99 729 Finance, Insurance, Real Estate 89 601 Hotels & Lodging 10 487 Movies, Recreation, Entertainment 33 359 Education Institutions & Libraries 15 315 Construction 31 134 Government 10 110 Other Services 169 890 Source: Montana Site Selector https://svc.mt.gov/doc/siteselector/ F. Commuting to Work Census data indicates that 71% residents in Whitefish commute to work by car. Whitefish has a higher percentage of home workers and people who walked to work than statewide averages. Figure 3: Commuting Characteristics – Whitefish Source: U.S. Census, American Community Survey 2017-2021  3 II. Housing Information A. Housing Prices According to US Census data, median sale prices in Whitefish are 50% higher than the median price for the rest of the County. Sales prices in Whitefish were more than double what they were just five years ago. Recent trends for 2023, indicate that the rate of increase in housing prices is stabilizing. Table 4: Flathead County/Whitefish Median Sales Price by Year Location Flathead County Whitefish # Median Price # Median Price 2019 2,084 $330,000 440 $431,000 2020 2,773 $380,000 689 $535,000 2021 2,545 $515,000 616 $652,000 2022 1,789 $600,000 399 $835,000 2023 (Qtr. 1 & 2) 712 $597,875 153 $899,000 Source: Northwest Montana Association of Realtors, Market Report B. Rental Prices According to data collected for the Whitefish housing needs assessment, the average rent in Whitefish increased by 50% from 2016 to 2022. The U.S. Department of Housing and Urban Development collects data for fair market rents on a county-wide basis. According to this data, a 3-bedroom rental in the County established for the year 2024, is over a $1,000 lower than the average 3-bedroom rent in Whitefish in 2022. Table 5: Whitefish Rental Rates Average Rent Average Rent Average Yearly 2016 2022 % Change 1 Bedroom $775 $1,170 7.1% 2 Bedroom $1,275 $1,845 6.4% 3+ Bedroom $1,680 $2,815 9.0% Overall Average $1,240 $1,890 7.3% Source: Whitefish Area Community Housing Needs Assessment Update, August 2022 Table 6: Fair Market Rents Flathead County Fair Market Rent Fair Market Rent 2019 2024 Efficiency $560 $733 1 Bedroom $664 $823 2 Bedroom $828 $1,081 3+ Bedroom $1,197 $1,425 4 Bedroom $1,398 $1,720 Source: U.S. Department of Housing and Urban Development  4 C. Building Permit Data The number of permits for residential construction was higher than the average from 2019 to 2021 and then declined in 2022. Since 2018, 45% of new units were single-family units while multi-family units comprised 31% of new residential units and townhomes comprised 27% of new units. Table 7: Residential Construction Activity in Whitefish 2018 2019 2020 2021 2022 Total New Single-Family 64 95 92 129 57 437 New Accessory DU -- 6 5 7 6 24 New Townhome/Duplex 40 77 67 57 16 257 New Multi-Family 34 68 138 27 34 301 Total new units 80 246 302 220 113 961 Source: Whitefish Planning & Building Dept., Annual Report - 2023 D. Seasonal Housing According to the US Census data the total vacancy rate for all types of housing was 25.4% compared to a statewide average of 14.8%. The higher vacancy rate in Whitefish can be attributed to the presence of vacation home/seasonal dwellings. The vacancy rate for non-seasonal dwellings in Whitefish is comparable to statewide averages. Table 9: Occupancy Status Whitefish Flathead County Montana Total Dwelling Units 4,660 49,595 512,553 Vacant Dwelling Units 1,185 8,815 76,072 Seasonal/Recreational Dwelling Units 835 6,301 38,816 Seasonal Units as a % of all Units 17.9% 12.7% 7.6% Vacancy Rate - All units 25.4% 17.7% 14.8% Vacancy Rate – Non-Seasonal units 7.5% 5.1% 7.2% Source: U.S. Census, American Community Survey 2017-2021 G. Short Term Rentals Short Term Rentals (STRs) are defined as the rental of an entire privately owned house, townhouse unit, condominium unit, apartment or other residence, or any space within a dwelling unit rented independently, for stays of less than 30 days. In Whitefish, short term rentals are allowed in the WB-3, WRR-1, WRR-2, WRB-1, and WRB-2 zoning districts. (See map) All STRs are required to register with the Planning office and demonstrate that they meet code requirements. Operating a STR outside an allowed district is a violation of City Code, and subject to enforcement action. Short term rental units located in the county are permitted in any county zoning district. As of October, 2023 there were currently 375 legally licensed units in the city limits within the approved zones for STRs in Whitefish. The number of legal units has increased from 150 units in 2021. Per data from AIRDNA, in July of 2023, there were 478 STRs units operating within the city limits and 1,261 units operating in the 59937 zip code outside of city limits. In 2019, there were 252 STRs in the City and 896 in the unincorporated areas in the zip code. AirDNA indicates that STRs have a 58% year round occupancy rate and average approximately $8,000 per month revenue. The average daily rate for an STR is $500 compared to $200 for a traditional hotel room.  5 Figure 4 : Location of Zoning Districts that Permit Short Term Rentals in Whitefish Note: Pink areas represent zoning districts that allow short term rentals Source: City of Whitefish Planning and Administration Web map III. Lodging Trends A. Lodging Occupancy Rates As indicated in the chart below, the peak months for lodging occupancy is July followed by August. April and November have the lowest occupancy rates. In 2020, there was a dramatic drop in occupancy from March to June due to the Covid-19 pandemic. Figure 5: Traditional Lodging Occupancy Rates 2023-2019 Source: Smith Travel Research via Whitefish Convention and Visitor Bureau  6 The years of 2019 and 2021 had the highest occupancy rates for traditional lodging but once pandemic restrictions for oversea travel were lifted, overall visitation and lodging occupancy rates dropped off in 2022 and 2023. There is more fluctuation in occupancy rates for short-term rentals, but generally they’ve had lower occupancy rates during the pandemic years. Figure 6: Short Term Rental Occupancy: 2023-2019 Source: Air DNA via Whitefish Convention and Visitor Bureau Data from 2023 indicates that traditional lodging and short term rentals had similar patterns in regards to peak summer months for occupancy rates. Short term rentals, had slightly higher occupancy rates than traditional lodging. Figure 7: Whitefish Convention Lodging Occupancy 2023 Comparison Source: Air DNA via Whitefish Convention and Visitor Bureau  7 B. Lodging Tax Statewide, tourism and film Figure 8: Distribution of 4% Lodging Facility Use Tax promotion is funded through the 4% Lodging Facility Use Tax, commonly known as the “Bed Tax.” The Bed Tax is collected from guests of hotels, motels, bed and breakfasts, guest ranches, resorts, and campgrounds. The majority of bed tax funds collected in Whitefish are not available for local use. The pie chart indicates how revenues from the lodging tax are allocated. Of the funds designated for regions/CVBs, the six tourism regions receive the majority of this allocation. https://brand.mt.gov/Programs/Office-Of-Tourism/Lodging-Facility-Use-Tax Figure 9: Montana Tourism Regions Flathead County is located within the Glacier Country tourism region. There are three Convention & Visitor Bureaus (CVB) in the county (Whitefish, Kalispell, Columbia Falls). Source: Montana Dept. of Commerce – Office of Tourism As indicated in the table below, Flathead Table 9: Lodging Tax Collection by County - 2022 County generates the largest amount of County Lodging Tax Collection lodging tax in the State. The third quarter Flathead $10,113,105 (July, Augus, September) is the peak month Gallatin $9,843,143 for collecting the tax. Missoula $6,558143 Yellowstone $5,020,416 Lewis & Clark $1,951,495 Source: https://brand.mt.gov/Programs/Office-Of- Tourism/Lodging-Facility-Use-Tax  8 IV. Visitor Spending A. Resort Tax In 1995, Whitefish voters approved a 2% resort tax for a term of twenty years. Since then, Whitefish voters have approved several extensions as well as an increase in the resort tax rate from 2% to 3% to fund the purchase of the Haskill Basin Conserva on Easement. In 2021, voters approved a 20-year extension of the 3% tax and a new formula for alloca ng funds. Alloca ons include property tax reduc on, streets repairs, underground u li es, sidewalks, improvements to bike paths/parks. A small amount of resort tax funds are used for administra on and also for Whitefish Trail maintenance. In 2023, voters approved a ballot measure to allocate 10% of funds for housing projects. The total tax collected in FY 2022 was $6,319,737. Some trends to note in the following charts include:  For FY 2023, only the months of July and August are represented on the chart.  As indicated in the chart below, July and August are the peak months for collecting the resort tax.  The month of April represents the lowest month for resort tax collections. Figure 10: Total Resort Tax Collections by Month Figure 11: Resort Tax Collections by Business – FY2022  Fiscal year (FY) 2019 represents trends prior to the Lodging Covid pandemic. Resort tax collections in FY 2020 25% and FY 2021 represent visitation during the Covid Retail pandemic. 40%  Resort taxes in FY 2022 represents the highest year of collections. Inflation will impact collections amounts.  As indicated in the pie chart, The retail sector Bars/Rest collects the most resort tax followed by the . bar/restaurant sector. 35% Source: City of Whitefish Finance Department  9 B. Visitation Expenditures According to ITRR surveys, the total amount of direct expenditures from visitation in Flathead County was $818,639,000. Expenditures were highest in the Restaurant/Bar category followed by outfitters/guides and hotel/motel. Including non-direct spending from employment in the travel industry, the combined economic impact from tourism was $1.3 billion in Flathead County. Statewide, only Gallatin County had a higher level of economic impact. Table 10: Total Nonresident Spending in Flathead County - 2022 Type of Expenditure Annual Amount % of Total Restaurant, Bar $174,309,000 21% Outfitter Guide $137,581,000 17% Hotel/Motel $104,375,000 13% Gasoline, Diesel $91,894,000 11% Groceries, Snacks $73,401,000 9% Rental Cabin Condo $72,453,000 9% Auto Rental $52,762,000 6% Retail Sales $48,036,000 6% Made in MT $28,347,000 3% Campground, RV Park $14,383,000 2% Licenses, Entrance Fees $13,487,000 2% Vehicle Repairs $2,524,000 <1% Gambling $1,917,000 <1% Farmers Mkt. $1,180,000 <1% Total $818,639,000 Source: University of Montana Institute of Tourism and Recreation Research C. Visitor vs. Resident Spending According to Visa Card Services overall expenditures in Whitefish for the peak summer month of July indicates that overall spending decreased from 2022 to 2023. Based on aggregate data regarding expenditures based on home address of the card holder, visitor spending is almost double the amount of spending by Whitefish residents. Table 11: VISA Destination Insight – Monthly Card Spend – Whitefish Month Year Visitor Resident Total July 2023 $12,912,869 $6,513,686 $19,426,553 July 2022 $14,713,840 $7,082,178 $21,796,018 Year Over Year -$1,800,973 -$568,492 -$2,369,465 Source: Visa Card Services Notes: 1. Does not include online purchases; Visa represents approximately 65% of domestic market share 2. Warm Season - YOY “Card Spend” (May - July): 2023: $44,924,727 2022: $49,756,787 3. Top Non-Resident Markets: Seattle area, Los Angelos Area, Minneapolis-Saint Paul  10 V. Visitation Trends A. Annual Visitation Totals Visitation in the county peaked during the pandemic years due to travel restrictions and a preference for outdoor vacations. Since international travel limitations have been lifted tourists are choosing other destinations and local visitation declined in 2022. ITRR “Economic Outlook – 2023” noted that until travel delays in the airline industry are resolved, tourism will likely remain at lower levels for the near term. Non- resident visitors to Whitefish, typically comprise between 33% to 36% of all visitation in the County. In 2020, when Glacier National Park was closed temporarily due to the pandemic, visitors to Whitefish comprised 45% of all visitation in the County. Other external factors influencing visitation include weather, wildfire, air fares and gas prices. Figure 12: Total Annual Visitation Whitefish & Flathead County 3,500,000 3,000,000 2,500,000 Axis Title 2,000,000 1,500,000 1,000,000 500,000 0 2018 2019 2020 2021 2022 Flathead 2,144,000 1862000 1786000 2091000 1947000 Whitefish 1,090,000 1088000 1482000 1207000 934000 Source: https://www.umt.edu/tourism-recreation-research/interactive-data/default.php B. Whitefish Mountain Resort Winter skier visits and pass sales have been increasing the last 5 winters. Weather is a significant factor in the number of skier visits. Summer visitation numbers are trending back toward pre-pandemic levels in activity visitation and visitor spending. Visitors unable to obtain reservations for Glacier National Park may seek alternative recreation opportunities such as Whitefish Mountain Resort. Table 12: Winter Skier Visit Totals Year Skier Visits 2019-20 359,114 2020-21 458,527 2021-22 463,875 2022-23 500,187 Source: Whitefish Mountain Resort Note: Resort closed 3-weeks early in 2019-20 due to Covid-19 pandemic  11 C. Glacier National Park The number of visitors to Glacier National Park peaked in 2017. In 2020, visitation was down due to a temporary park closure in response to the Covid-19 pandemic. Visitation rebounded in 2021 as more people ventured outdoors and then declined slightly in 2022. Visitor numbers will vary from year-to-year depending on weather conditions, the opening date for Going-to-the-Sun road, and wildfire activity. Visitation has remained relatively steady even with the implementation of the park reservation system. Table 13: Annual Visitor Trends for Glacier National Park # Visitors 2017 3,305,512* 2018 2,965,309 2019 3,049,839 2020 1,698,864* 2021 3,081,656 2022 2,908,458 Source: U.S. National Park Service – Glacier National Park, https://irma.nps.gov/Stats/Reports/Park/GLAC Notes: 1. Visitation in 2017 was highest on record. 2. In 2020, park was closed from March 24 to June 8. East side remained closed. 3. In August, 2023 Year-to-Date = 2,249,540 compared to August, 2022 Year-to-Date=2,212,917 Although the overall visitation to the park remained stable, the reservation system did impact the traffic at various park entrances. In 2022, the Polebridge, Camas, and Two Medicine entrances did not require a reservation. Due to congestion, reservations were required for these entrances in 2023 and the number of visitors using these entry points did decline. The reservation system is still in a pilot phase and subject to additional changes. In 2024, reservations will not be required for the Two Medicine and Saint Mary’s entrances. Table 14: Visitation Trends by Selected Park Entrances July 2023 July 2022 % Change Polebridge 15,643 20,799 -24.8% Camas 25,702 28,316 -9.2% West Entrance 338,439 310,796 8.9% Saint Mary’s 158,706 154,719 2.6% Two Medicine 52,691 61,299 -14% Source: U.S. National Park Service – Glacier National Park, https://irma.nps.gov/Stats/Reports/Park/GLAC  12 D. Glacier Park International Airport Glacier Park International Airport provides commercial passenger service and direct flights to multiple locations. Six major airlines —Alaska, Allegiant, American, Delta, Sun Country, United and Avelo — serve the Flathead Valley with service to hubs in Seattle, Salt Lake City, Minneapolis, Denver, and Las Vegas. In addition to daily and weekly service through these main hubs, direct seasonal flights with the various carriers are also available to New York, Los Angeles, Dallas, Chicago, Houston, Minneapolis/St. Paul, Phoenix, Portland, San Francisco/Oakland, and San Diego. As noted in the chart below, except for the pandemic year of 2020, there has been a steady increase in deboardings. The construction and equipping of an approximately 120,000 square foot terminal expansion to the Glacier Park International Airport is underway and is expected to be a 5-year project. (https://www.gpiexpansion.com/) Figure 13: Glacier International Airport Deboardings Deboardings 450000 400000 350000 300000 Axis Title 250000 200000 150000 100000 50000 0 2016 2017 2018 2019 2020 2021 2022 Deboardings 247445 270451 307281 356297 214718 416224 419536 Source: Montana Department of Transportation, https://mdt.mt.gov/aviation/studies-research.aspx Whitefish Airport is a general aviation airport owned and operated by the Montana Aeronautics Division of the Montana Department of Transportation. The airport is located on the east end of town and has a grass runway for small planes. E. Whitefish Trails F. Whitefish Chamber of Commerce  13 VI. Visitor Characteristics A. Non-resident Travel Patterns - Characteristics The following statistics from the Institute of Tourism & Recreation Research indicate travel patterns by non-resident tourist who visit Whitefish. Non-resident visitors are defined as not residing in Montana.  72% are repeat visitors  12% enter the State at the U.S. Hwy 93 – Port of Rossville  21% Flew on portion of trip to Montana  Average nights spent in Montana: 7.4  65% Travel as a couple. 18% travel with immediate family. 10% travel alone.  Visited: Glacier National Park (79%) Yellowstone National Park (25%) Flathead Lake State Parks (20%)  Average Age = 59 B. Non-resident Vacation Preferences and Planning According to ITRR Data, the primary trip purpose of Whitefish non-resident visitors is vacation/pleasure. Mountains, forest, rivers, lakes and open space are the main attractions for visitors. Figure 14 : Primary Trip Purpose to Whitefish -2022 Business Passing Thru 2% 4% Visit Family/Friends 19% Vacation 75% Table 17: Features & Activities that Attracted Whitefish Visitors to Montana for Vacation - 2022 Feature % Attracted Activity % Participated Mountains/Forest 74% Scenic Drive 69% Rivers 54% Day Hike 66% Lakes 50% Wildlife Watching 38% Open space/uncrowded 48% Nature photography 37% Hiking 41% Visit Local Brewery 31% Camping 17% Car/RV Camping 30% Family/Friends 15% Visit Historic Site 29% Fishing/Flying Fishing 11% Recreational Shopping 29% Native American History 11% Visit Farmer’s Market 11% Source: University of Montana Institute of Tourism and Recreation Research - 2022  14 C. Travel Planning Online sites and apps are the primary information sources for visitors planning vacations. About one- third contact the hotel directly to book room while another third use on-line web sites. Table 18: Travel Planning Resources Used by Whitefish Visitors Information Sources % Booking Methods % Search Engine 65% Contact hotel directly 31% National Park Website/brochure 39% Walked-In 17% Official MT Website (VisitMT.com) 24% On-line travel site 10% Info from previous visitor 24% VRBO/Home Away 10% Consumer Online Reviews 22% AirBnB 10% Mobile Apps 20% Other 8% Friends/relatives living in MT 18% N/A 13% On-Line Video 13% Social networking 12% Source: https://www.umt.edu/tourism-recreation-research/interactive-data/default.php D. Visitor Satisfaction Visitors expressed the highest levels of satisfaction with a welcoming experience, the amount of open space and the local culture/heritage. Wildlife viewing and stewardship of land also ranked high. The lowest rankings for satisfaction were with availability of EV charging stations and recycling facilities. Table : Satisfaction with Aspects of Montana 2022 2018 % Positive % Positive A feeling being welcomed 96% 91% Amount of open space 94% 88% Main Streets reflecting local culture/heritage 93% 80% Wildlife viewing opportunities 86% 79% Stewardship of the land 85% 75% Amount of historical roadside information 82% 79% Access to public lands 81% 65% Restaurants with local products 80% 79% Availability of travel information 78% 82% Availability of local arts and crafts 65% 63% Highway rest areas 65% 82% Availability of recycling bins 41% 57% Availability of electric car charging stations 2% n/a Source: https://www.umt.edu/tourism-recreation-research/interactive-data/default.php  15 VI. Economic Impact  In 2022 estimates of spending in Flathead County by nonresident visitors to the state totaled nearly $819 million. This $819 million in local spending directly supports $735 million of economic activity in the region, and supports an additional $583 million of economic activity, indirectly. The total contribution of nonresident spending to the regional economy was $1.3 billion. (Source: ITRR, “Economic Contributions of 2021/2022 Non-Resident Travel”)  Glacier Country Tourism region had the highest level of Visa card spending levels from non-resident visitors ($628 million) among the six regions. Yellowstone region was the second highest. ($590 million). (Source: https://brand.mt.gov/Programs/Marketing/Tourism-Research/)  Since FY96, the first year of collections, the Whitefish Resort Tax collections has generated $62,893,103 in revenue. (Source: Whitefish Finance Department)  The “Spending Potential Index” (SPI) represents the amount spent for a product compared to a national average. ESRI Site Selector data indicates that the SPI for the City of Whitefish exceeds national averages in spending for recreational vehicle and sports/recreation equipment. (https://svc.mt.gov/doc/siteselector/)  The “Market Potential Index” (MPI) measures the relative likelihood of households in the specified trade area to exhibit certain purchasing patterns. ESRI Site Selector data indicates that the MPI for purchasing local products and “Buying American” is significantly higher than the national average.  Outdoor recreation adds approximately $2.6 billion annually to Montana’s GDP. (Source: https://businessformontanasoutdoors.com/research/).  in a 2020 report prepared by the Institute of Tourism and Recreation Research, “Quality of Life” is the number one reason entrepreneurs “start, relocate and keep their businesses and jobs in Montana.” Access to “outdoor recreation/parks/open spaces” is ranked as the highest attribute of quality of life (26.2%) above cost of living, public safety, health care, education, and culture. (Source: ITRR, 2020).  The Glacier Country Tourism, “Destination Stewardship Plan” indicates strong recognition of the contribution of tourism to the state and local economy. Figure 15: Tourism Contributions Source: Glacier Country Tourism, “Destination Stewardship Plan”  16 VIII. Tourism Related Studies A. Resident Attitudes Towards Tourism 1. “Montana Residents Attitudes Towards Tourism”, University of Monana – ITRR, 2022  Since 2001, the precent of Montana residents that agree with the statement that, “Overall benefits of tourism outweigh the negative impacts.”, has remained relatively stable. Since the beginning of the pandemic (2020), the levels of disagreement a have been increasing but are still well below the previously recorded high of 38% in 2001.  At least half of all respondents either agreed or strongly agreed that the state is becoming overcrowded because of more tourists. Results from 2022, indicate an 11% decrease in the overcrowding sentiment from 2021.  Statewide, and in the Glacier Country region, approximately eight of ten respondents agree that tourism promotion by the state benefits their community economically.  Only 35% of residents in the Glacier Country region agreed with the statement that “If tourism increases in Montana, the overall quality of life for Montana residents will improve.” 2. “Glacier Country Tourism – Destination Stewardship Plan”  On a scale of “1= Too Few Visitors” and “10= Too many visitors”, residents of Flathead County strongly indicated that summer season had too many visitors (9.33) while the spring season ranked at “Just the right amount visitors”. (5.11). Fall was ranked at 5.96 and winter at 6.91.  In response to support for various tourism strategies, attracting visitors who are respectful of the people who live here and who care about protecting our natural resources ranked the highest. Figure 16: Support for Tourism Policies Source: Glacier Country Tourism, “Destination Stewardship”  17 B. Work Force Studies 1. University of Montana ITRR, “Montana Work Force Study-2022”  Of those respondents with some work experience in the service/hospitality industry, nearly half (47%) reported that they left their job at some point since the beginning of 2020. This compares to 22% for all employees. It should be noted that respondents may have returned to their same employer or a new employer within the same industry (e.g., return after furlough)  In Glacier Country, 48% of employees chose to leave their job as opposed to being furloughed. This compared to 60% who chose to leave jobs statewide. 16% of workers statewide reported leaving due to retirement.  In Glacier Country 10% of workers rely on seasonal work. 2. Montana Department of Labor, “2023 Labor Day Report”  Tight labor market conditions persisted in 2022, with nearly three job openings for every one unemployed person.  In 2022, Montana added 20,900 jobs – the most of any year in state history. Montana ranked 8th among states for employment growth in 2022, posting 3.9% growth.  The unemployment rate fell to a record-low 2.3% the first quarter of 2023,  Montana ranks 2nd in the nation for the largest percentage of in-migration from 2020 to 2022. Over 40,000 more people moved to the state than left from 2020 to 2022, translating to 3.8% of the Montana’s population.