by John Dowd
On April 12, the Bitterroot Chamber of Commerce partnered with Glacier Country Montana for a “lunch and learn” event to speak with various businesses on tourism. Efforts to improve tourism are having broader effects on local businesses than many may understand, and a major talking point during that meeting was the negative pushback from the local population against bringing in more tourism.
Those efforts are ongoing, and for tourism businesses in the valley, there is another option available now that was also discussed during that meeting.
Julie Foster, the executive director of the Ravalli County Economic Development Authority (RCEDA), is trying to get the word out about the Tourism Development and Enhancement Revolving Loan Fund Grant (Tourism RLF). The RLF awarded access to over $1 million to the county and allows a partnership between the state, local economic development organizations and local destination stewardship organizations.
The latter of those, for the area, would be Glacier Country Montana. In fact, to qualify for the Tourism RLF, applicants need a letter of recommendation from Western Montana Glacier County or another local applicable, officially recognized destination stewardship organization.
Racene Friede is the president and CEO of Glacier Country Montana and was the main speaker at the April 12 event. During that “lunch and learn,” Friede gave a bit of a “state of the valley” talk regarding tourism and techniques for helping businesses in the area.
Friede reframed the conversation early, stating, “Everyone has been a visitor somewhere.” She mentioned how just going out of town and staying at a hotel, going out to eat or buying gas are considered tourism, and these contribute to the local economy. In Montana, especially the western part of the state, agriculture and tourism are the top two industries and economic drivers. It is imperative that the state and businesses therein tap into that.
Part of doing that is the lodging taxes levied on all overnight stays. This includes campgrounds, dorms, hotels, motels, lodges and more. In Montana, there are two lodging taxes, including the 1987 facility use lodging tax and the 2003 lodging sales tax, which total up to 8% on the sale of these transactions. That money goes back into various industries and locations. 37.5% goes into the Montana General Fund, which is further broken down. Some of those funds go into the Department of Commerce. These funds also directly impact state park funds, and in Ravalli County, a large chunk of the funds from the lodging taxes go back into short-term rentals.
In Montana, “visitors actually fund tourism,” said Friede. This is unlike many other states, where state general funds are used to fund tourism activities, signage and parks.
However, there are some growing pains in the area to create those major economic-driving businesses, which were discussed at the event. One such concern was that hotels need commercial sewer, and Hamilton and Darby are the only ones with that attached to the highway.
Another issue voiced was that infrastructure across the state is old and not built to support the high levels of tourism the state sees. However, there are some things in the works, said Friede.
According to her, they (her organization and the state) want to “promote and preserve qualities that make Montana a great place to live.”
Additionally, “Only 20% of every dollar goes into promotion.” She added that the state is starting to see a decline in those lodging funds, with fewer visitors coming to Montana. Because of this, the state and tourism organizations like Glacier Country Montana, are trying to make efforts to bring those funds back.
One such method is the Tourism RLF, which Foster believes businesses should try to take advantage of. One business featured at that April 12 event was the Lost Horse Lodge, which was in near-disrepair prior to seeking assistance from RCEDA and the Tourism RLF.
According to Foster, there are many benefits to the RLF. She said a typical loan has higher interest rates of at least 7%. “We don’t want to be the bank,” said Foster. In fact, they are “always trying to get people to the bank” because that supports local affairs. This program boasts from 4 to 6% interest at most, but requires $2 to every $1 to come from other funding sources, such as a bank. What this means is much more flexibility and accessibility to funds.
The Tourism RLF grant is not as constrained on what can be offered, such as interest-only payments. Foster wanted to be clear that this is not free money, and recipients still need to pay it back within the five years. But, that flexibility can be a big part of what makes this fund so powerful. “If you think about tourism,” Foster added, “it’s seasonal.” This could potentially offer a way for a business to make small or almost no payments in the off-months, when there is no money coming in.
It all depends on the plan set ahead of time, and the plans are flexible. “We really want these businesses in our community,” said Foster. Additionally, those funds, once paid back, will go back into the community again, perpetually helping to reinforce tourism businesses in the area.
“Tourism doesn’t necessarily mean people moving here,” said Foster. She said this regarding another conversation that took place during the April 12 event, which saw concern over those in the area who are “anti-tourism.”
Friede advised, “Part of it is showing them how important it is to you, as a business owner.”
She also said that reframing it as “visitors, not tourists,” might help, as long as those visitors are respectful of local views and mindsets.
Another to speak at the April 12 event was Taylor Tidwell, the tourism partner grant coordinator with the Montana Department of Commerce, which is managing the Tourism RLF. She added to the previous comments, saying, “Tourism is kind of a trigger word.” However, it is also crucial to Montana’s economy. According to Foster, the state has all but lost other major industries, such as timber, as a main economic driver. “We have to build up the assets that we have,” which are primarily in the tourism industry.
Tidwell said the department is awarding $19.25 million over the next five years to support seven rural communities. $24 million will go to the RLF, with access to over $1 million of that through RCEDA.
Foster recommends that if anyone is interested, has an idea for a local tourism business or wants to learn more, they can contact RCEDA at (406) 375-9416.
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