For the week of February 12-18, 2003

Chamber launches new promotion to counteract slumping economy

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The Sun Valley/Ketchum Chamber & Visitors Bureau launched a new promotion this week called Too Good 2 Be True in order to entice visitors to the area and stimulate local business for the remainder of the winter season.

Too Good 2 Be True will be followed by the CVB’s annual Spring Fling promotion, which will hopefully soften the blow of the slumping economy for local businesses, states a CVB press release.

"We are not the only resort community feeling the economic crunch right now," said Carol Waller, executive director for the Sun Valley/Ketchum Chamber and Visitors Bureau. "The nation as a whole is facing the fear of a war in Iraq, and a shaky stock market, which makes people hesitant to spend money. Plus, locals know that Baldy is covered, but our snow reports do not look good to potential visitors reading them in the paper or online when they are next to places like Alta (Utah) that just received four feet. The CVB is launching these back-to-back promotions to help our area with this economic slow down and perceived lack of snow."

The Too Good 2 Be True promotion includes a 2-night 1-day lift ticket package, starting at $145 per person, based on double occupancy. Visitors receive one free lift ticket if they stay two or more nights, plus discount coupons or value offers at participating area restaurants and stores.

Bookings can be made through Sun Valley /Ketchum Central Reservations by calling 1-800-634-3347 ext. 1 or visiting the online booking service at www.visitsunvalley.com.

The Spring Fling program begins after Bald Mountain closes (approximately mid-April to June 15) and includes a discounted lodging package and a 2-for-1 certificate that can be used for different activities, such as horseback riding, whitewater rafting, biking or massage.

The CVB will spend a total of $30,000 on these promotions, Waller said. A variety of advertising and communications mediums will be used, including broadcasts, e-mails to over 8,500 CVB e-mail subscribers, a banner ad on the CVB web site (which receives an average. of 25,000 visits each month), public relations content pitches to web sites, plus regional ads in Boise, Portland, Seattle and Los Angeles.

"We are hoping that these promotions will help entice visitors to our area and stimulate sales," Waller said. "The latest Local Option Tax numbers for the month of December show that Sun Valley is up by 18 percent and Ketchum is down by 8 percent when compared to December 2001. "

An anecdotal survey of Western resorts conducted by the CVB indicates Sun Valley and Ketchum are not alone in feeling an economic squeeze.

Sun Valley Company reports that lift ticket sales are down because of the rainy weather in January. Sun Valley’s retail sales are also down, but its hotel bookings are up when compared to last year.

In Colorado, Aspen and Vail both report that they are flat when compared to last year, except during the X-games in Aspen.

Big Sky in Montana reports a better year than they thought it was going to be, but not as good as last year with retail feeling the brunt of the economic down turn. Park City, Utah, businesses report that they are holding their own with a great Christmas season and a decent January because of the Sundance Film Festival.

Jackson Hole in western Wyoming was up in December, but it also has 8 feet of snow currently and saw a 55 percent increase in the number of jet seats coming in to the Jackson airport this winter season.

The CVB also interviewed many businesses in the Sun Valley/Ketchum retail community and found mixed reports, but most have indicated that they are significantly down from past Januarys.

"We’re down numbers-wise so far this winter, but our margin is actually up," said Laura Stackpole, manager of Formula Sports in Ketchum. "We’ve decided to buy less and make smarter purchases, really focusing on the things you can’t find in a city ski shop--items that appear to the consumer as exclusively available in Sun Valley. It’s worked very well and I’d encourage others to do the same."

"We’re up for 2002 and we’re a new business, so we’re doing pretty well," said Hurley Hamilton, owner of Thunder Paws Express in Ketchum. "If we weren’t up, we’d be out of business. We definitely survive on locals coming in here. So, we try to shop locally, and I sure hope that others do the same. I think it’s very important right now."

The reports from around the nation indicate that U.S. businesses are in dire straits with consumers hunkering down. According to Lynn Franco, director of the Conference Board’s consumer research center, the threat of war has made consumers increasingly cautious about the short-term outlook. A report released last week by ABC News/Money magazine said its weekly barometer of U.S. consumers was flat at -27 in the week ending Feb 2. The survey’s buying climate gauge showed 77 percent of Americans believe now is not a good time to spend money.

When looking strictly at national travel patterns, the Travel Industry Association of America reports that one-third of leisure travelers are not flying because of economic and price concerns. The second most important factor in decreased leisure travel is the lack of time or ability to travel as much by air as in previous years. The most troubling finding in the TIA report was that only 16 percent of business and leisure air travelers say they are satisfied with the current cost of air travel. This is interesting considering that airfares are now at their lowest level since 1988, the CVB press release states.

Greater use of the Internet seems to be changing travel patterns as well, according to TIA. In 2002, 64 million Americans made their travel plans online. The enhanced accessibility of last minute specials via the Internet as well as low prices on last minute travel is stimulating later bookings.

Airline tickets continued to be the most frequently purchased travel products online (77 percent), followed by accommodations (57 percent) and rental cars (37 percent). In addition, 30 percent of online bookers spend $2,500 or more when booking vacations.

Sun Valley/Ketchum Central Reservations launched its own online booking service two months ago to cater to the new booking habits of vacationers.

"The new online system has been amazing," said Tamera DeBoer of Sun Valley/Ketchum Central Reservations. "It really helps visitors see the properties that they will be staying at and compare them."

Sun Valley/Ketchum Central Reservations reports that the average lead-time on bookings is 40 days and plenty are coming in just two weeks out. This makes economic forecasting very difficult, the CVB states.

"Taking all of the information we have on changing travel trends and what customers are looking for in a slow economy, we think the Too good 2 Be True promotion is the best effort that we can put forth at this time," said Waller. "Plus, we are trying to talk to travelers where they are booking the majority of their travel these days … online."

The Idaho Mountain Express is distributed free to residents and guests throughout the Sun Valley, Idaho resort area community. Subscribers to the Idaho Mountain Express will read these stories and others in this week's issue.