Sun Valley City Councilman Bob Youngman has used dwindling local-option tax collections to affirm suspicions that this resort economy has been faltering since 2001, and at a pace unmatched by comparable Western resort towns.
In a presentation to the Sun Valley City Council in January, Youngman showed that Ketchum's LOT receipts over the past decade decreased by about 35 percent and Sun Valley's by 23 percent. Since then, his research has caught the attention of the Ketchum City Council, Sun Valley Resort, the Idaho Department of Commerce and others, who've all called on Youngman to repeat his presentation for them.
Youngman said responses have always been similar, no matter the audience: People knew the economy was suffering in the Sun Valley resort area but were "surprised" about how badly.
LOT collections are considered a good indicator of economic health because the tax is placed on an array of goods. Ketchum imposes a 2 percent sales tax on lodging and by-the-glass liquor sales, and a 1 percent tax on retail sales and building materials, with the goal of offsetting the impacts of tourism on city services and infrastructure. Sun Valley imposes a 3 percent sales tax on lodging, by-the-glass liquor sales and tickets to events in the city. A 2 percent tax is imposed on most retail sales and a 1 percent tax on ski lift tickets and season passes.
In the wake of immense support for Youngman's work, Sun Valley Mayor Wayne Willich has appointed him with the task of forming a "marketing exploration committee" to find a consultant that can do a more in-depth analysis of the area's economy. Once the economy's dynamics are understood, Youngman said, the area could then tune its marketing strategy and amenities to one song instead of trying to market to everyone.
Willich said the committee wouldn't be a function of the city but an ad-hoc group that would still report progress to the city. Youngman said Ketchum city leaders have also expressed interest in participating.
Youngman said he has collected about 10 resumes from potential committee members with marketing and business experience. He said that to achieve a fresh, unbiased perspective, he excluded any past or present members of the Sun Valley-Ketchum Chamber & Visitors Bureau and area business owners.
He said the committee-member selection process began this week, with the committee consisting of about three members.
"We're going to keep it very small," Youngman said. "A lot of work to do."
Once the committee is assembled, Youngman said, its members will elect a chairman—not him—and search for potential marketing consultants. Firms in Switzerland, France, Colorado, California and Vermont have already contacted him.
The committee will then choose a firm to recommend to the cities of Ketchum and Sun Valley, along with a needed dollar amount to hire it.
Sun Valley City Councilman Nils Ribi emphasized at a Feb. 9 city meeting that the study would not direct local businesses as to how they must market to customers. It would be used for determining how the chamber would use LOT dollars given to them by the cities for marketing.
Trevon Milliard: tmilliard@mtexpress.com
Bob Youngman
