KEEP CUSTER COUNTY AFFORDABLE

Preserve Our Economy. Protect Local Jobs.

Video: Keep Custer County Affordable

VOTE NO on Question 1A

November 4, 2025

Tripling the lodging tax during Colorado's worst tourism crisis in years would devastate Custer County's economy. Protect local businesses and workers by voting NO.

WHAT'S ON THE BALLOT?

Custer County Question 1A asks voters to increase the lodging tax 300% on all short-term rentals, motels, and RV parks in Custer County, Colorado.

The tax would add 4% more to every visitor's bill, bringing the total tax burden to nearly 10% to visitors staying in Westcliffe and Silvercliffe when combined with state and local taxes.

Proponents claim this will raise $170,000 annually for housing and childcare. But the real story is what it will cost our economy.

The Problem: This tax increase is bad timing. Tourism across Colorado is declining, and Custer County has been hit particularly hard with lodging revenue down 13% in 2024 and down another 7% in 2025.

THE FACTS DON'T LIE

TOURISM IS DECLINING

-13%

Custer County lodging revenue dropped 13% in 2024, followed by another 7% decline through August 2025. This is not the time to raise prices!

Source: Treasurer Office, Custer County

COLORADO LOSING GROUND

0.3%

Colorado tourism spending grew only 0.3% in 2024 compared to 4.2% nationally. We're already losing tourists to other states.

Source: Colorado Tourism Office 2024

SHORT-TERM RENTALS DOWN

-10%

Statewide short-term rental occupancy decreased 10% in early 2025. Higher taxes will only accelerate this decline.

Source: Colorado Tourism Office

PRICE SENSITIVITY MATTERS

1.5x

Economic research shows that for every 1% price increase, tourism demand drops by 1.5%. A 4% tax hike means 6% less visitors.

Source: Academic Tourism Studies

TAX BURDEN TOO HIGH

~10%

Combined state & local tax on short stays is already 9.9%. If 1A passes it will be 13.9%!

Source: County Tax Records

SEVEN COUNTIES MAKING MISTAKE

7

Seven Colorado counties are tripling lodging taxes this November. This is our chance to be the smart, affordable alternative.

Source: Colorado Sun

THE REAL ECONOMIC IMPACT

ESTIMATED ANNUAL ECONOMIC LOSS

$1.5 MILLION

While the county expects to collect $170,000 in new taxes, the economic ripple effect will cost our community an estimated $1.5 million in lost spending at restaurants, shops, gas stations, and services. Plus, the project loss in sales tax revenue will reduce the net tax gains to only $70,000!

HERE'S HOW THE MATH WORKS:

Context: Based on 2024 loddging tax receipts total lodging spending was $4.5M last year, with a total estimated tourism spending of $25M.

  1. Local ballot 1A proposes a 4% tax increase on $4.5M in annual lodging spending
  2. A 1% increase in the price of lodging leads to a 1.87% decrease in the number of tourists visiting a particular destination, (according to CaixaBank Research).
  3. Which means $300,000 less in accommodation revenue
  4. Given a tourism spending multiplier of 5.6x on accommodation spending (Dean Runyan report), this means $1.68M total economic impact
  5. Therefore, lost sales taxes reduce the net tax gain of the proposed bill to only $70,000

Bottom Line: Is $70,000 in net tax receipts (sales and lodging) worth losing $1.5 million in economic activity and putting local jobs at risk?

PRESERVE WHAT MAKES OUR VALLEY SPECIAL

Custer County is home to the stunning Sangre de Cristo Mountains, Colorado's first Dark Sky Community designation, and authentic Western heritage. Tourism brings $4.5 million annually to our economy and supports one-third of local jobs. Let's protect it.

Families from Texas, Oklahoma, Kansas, and across the country choose Custer County because it's authentic, affordable, and accessible. They're not wealthy resort-goers—they're teachers, retirees, and working families on a budget. Discretionary travel decisions are highly price sensitive, especially during the off-season.

These visitors support our restaurants, shops, gas stations, and services. They create jobs for our neighbors and help sustain our small-town economy.

Let's be different: While other counties tax away their tourists, let's brand Custer County as the affordable, welcoming destination where families can still afford to vacation.

MEDIA

Screenshot of Summit Daily article: Summer tourism slipping

Summer tourism to Colorado slips as mountain resort destinations get more expensive

June 24, 2025 | Summit Daily
  • Occupancy down 15.1% in May 2025 vs. prior year.
  • Booking streak down 6 months—the longest since COVID-19.
  • “Consumers are more price-sensitive than the peak inflation surges.”
“... undeniable impact that rate is having on bookings... Every time daily rates rise, the booking pace declines.”
Screenshot of Colorado Sun: summer slump

Summer slump in mountain-town visitors worries tourism officials

August 4, 2025 | Colorado Sun
  • Hotel occupancy DOWN 2% statewide through June 2025.
  • Short-term rental bookings DOWN 10% in Q1 2025.
  • 18 mountain towns saw $2 million less in taxable sales.
“Our market share compared to the rest of the country continues to decline.”
Screenshot of KUNC: Breckenridge bookings

Breckenridge Tourism Office says summer bookings are currently down 16%...

May 5, 2025 | KUNC/CPR
  • Breckenridge summer bookings: DOWN 16%.
  • Consumer confidence index: 87.7 (pandemic-era low).
  • 6-month economic outlook expected to drop to 2011 recession levels.
“We think there’s going to be a recession coming soon. So that’s pretty concerning.”
Screenshot of CPR: Colorado tourist spending

Amid Trump shifts, Colorado tourist communities keeping a close eye on tourism spending

June 27, 2025 | Colorado Public Radio
  • Lodging tax revenues down 7% in Mar/Apr 2025 vs. 2024.
  • Bookings fluctuate with political headlines.
  • Overseas travel declining.
“It’s a little bit of a rollercoaster. We usually don’t see that type of fluctuation.”
Screenshot of Aspen Times: Price sensitivity

Summer tourism to Colorado slips as mountain resort destinations get more expensive

June 22, 2025 | Aspen Times
  • Economy (≤$250/night) is the ONLY segment showing occupancy gains.
  • Luxury properties see occupancy drop even with higher rates.
“Budget travelers are the most active segment—but also most price sensitive.”
Sentry Colorado: Lodging tax increases

Tourist-drawing counties seeking big boosts to lodging taxes

September 17, 2025 | True State Sentry CO
  • 6+ counties seeking to triple lodging taxes in 2025.
  • Industry pushback: "very significant jump."
  • New state law enabled the increases.
"It seems unfair that... is on the shoulders of the lodging industry."

The Evidence Is Clear

Colorado's tourism industry is facing unprecedented challenges:

  • Statewide hotel occupancy is down
  • Short-term rental bookings have declined 10%
  • Consumer confidence is at pandemic-era lows
  • Visitors are becoming increasingly price-sensitive
  • Every price increase drives bookings down further
This is not the time to raise prices on tourists.

Custer County can choose a different path:

  • Position ourselves as the affordable, welcoming destination
  • Attract budget-conscious families who can still afford to vacation here
  • Gain competitive advantage while other counties raise prices
  • Protect local jobs and small businesses that depend on tourism
  • Keep our economy strong and sustainable

Vote NO on Question 1A to protect our local economy and keep Custer County affordable for everyone.

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Questions? Contact us at: hello@kcca.info