There's a sign in the front window of the Sunburst Guitar Gallery in Ketchum. "Going out of business sale," it reads, an indication, perhaps, of larger economic forces.
Sunburst, owned by Bellevue resident David Campbell, is Ketchum's only music store, and it has been in operation for five and a half years, offering an array of stringed instruments and music lessons.
"Honestly, when gas started climbing a year and a half ago, that's when revenue started dropping off," Campbell said. "I don't know if there's a correlation, but I can only assume there is one."
The economic picture for Campbell and other local merchants is more complex than rising fuel prices alone. In a resort town economic climate, business depends on the whims of tourists, second homeowners and full-time residents, as well as the health of inherent businesses. But for Campbell, the fact is that most of his business is generated from tourism, and tourism is influenced by the cost of traveling to and from the area.
"I've always maintained this," he said. "I'm surprised there isn't more of a campaign to educate about the importance of shopping locally."
Even so, earning more of local residents' spending would be too little for him at this point. His lease is up in August, and all indicators say he will not renew.
"Based on the current business climate, I'm not comfortable signing a new lease," he said. "Signing a new lease—it could spell economic ruin for me."
Fuel prices hit home
A significant portion of the Wood River Valley's economy is based on tourism, and tourism will undoubtedly take a hit because of rising fuel prices and the overall trend of the U.S. economy.
"Transportation is so big with so many of the goods that we buy," said Sun Valley-Ketchum Chamber & Visitors Bureau Executive Director Carol Waller. "It can be from the broadest perspective to the narrowest perspective."
Waller said the current economic climate is presenting challenges for everyone as they look for creative ways to weather the storm.
"But I think we will find different ways to do this. There's nothing like a crisis to make you pay attention."
The average cost for a regular gallon of gas in Idaho stood at $4.07 on Tuesday, up from $3.17 a year ago. AAA Idaho announced earlier this month that such record-setting gas prices are getting travelers' attention. Nevertheless, the travel advocacy organization forecasted that Americans are predicted to take more than 327 million leisure trips this summer, down only slightly from last year.
AAA said the Travel Industry Association reported this summer's projected decline in travel is expected to range from 1 to 1.5 percent lower than last year. It's a trend that points to a relatively soft summer travel season.
But that same industry survey suggests Americans are unwilling to forego vacations altogether.
Six in 10 Americans who are planning a trip by motor vehicle this summer said high gasoline prices would not change their plans. Among the other 41 percent who said high prices would change their plans answers suggested travelers would be willing to bend, but not break, their plans.
"No one should underestimate the resiliency of travelers when their personal vacations are on the line," said AAA Idaho Spokesman Dave Carlson. Record gas prices and high food costs may cause many travelers to modify their travel plans, he said. "Just don't ask them to cancel a much needed vacation."
Carlson said some travelers may stick even closer to home, budgeting for trips that take less than a tank of gas, traveling to places like Bruneau Sand Dunes near Mountain Home or Craters of the Moon National Monument near Carey.
And that is precisely what local marketing gurus are counting on, and a summer marketing campaign targets regional travelers.
"We do think we're going to see some more regional travel," Waller said. "People are going to be more inclined to travel close to home."
Evolution
The unofficial kick-off of the Sun Valley summer tourism season is July 4, and local merchants are still studying trends as the holiday weekend approaches.
"I think June has been a little slow, but how much that has to do with our weather versus the economy is hard to say," Waller said. The cool weather that persisted through mid-June "certainly must have played in."
But weekend business has been picking up throughout the month, Waller observed, even if numbers are "still a little off."
The writing is, however, on the wall, and the fickle winds of the local economy are changing.
"I just think it's the biggest challenge we're facing," said Ketchum Councilman Larry Helzel. "The historical knock on this place has always been accessibility, and now it's more accessibility challenged. The fact of the matter is that the airlines cannot afford to fly their small planes, and we're going to have to adjust to this challenge."
Helzel said the challenge manifests on many levels, from transportation to providing community housing, in short creating a more sustainable and self-reliant community.
"We are conceptually like an island," he said. "We are dependent on some form of transportation for everything here."
And that includes tourists—and guitars—and in the very near future Ketchum will have to adjust to being a town without a music store.
"The first few years were pretty good," Campbell said of his Ketchum guitar gallery. "People were excited about having a music store. But when you get to the point where the majority of your business is from out of town, not locals, you know you're in trouble."
David Campbell is owner of Sunburst Guitar Gallery on Leadville Avenue in Ketchum. As the economy continues to wane and gas prices continue to climb, the store will close its doors later this summer. Photo by Willy Cook
