Building on tourism

New Mexico Business Journal, June-July, 1999 by Aaron Roth

Taos wants a balanced economy that's in keeping with its history and culture

Heading north on Highway 68 from Espanola, the road suddenly turns away from the Rio Grande Gorge and ascends into Taos valley. The lush topography, majestic mountains and the raging Rio Gran& provide the backdrop for the town of Taos, with its nearly 6,000 residents, and its neighboring communities. Amid this rugged beauty, pueblo buildings and communities have endured for more than 800 years, making them some of the oldest continual habitations in North America.

History, a vibrant arts community and the great outdoors are but a few of the reasons that tourism is the mainstay of the economy. Yet the tourism industry is attempting to reverse a recent downward trend which has contributed to a decline in the growth of gross receipts over the last several years.

"We've been in a slump recently," said Taos County Chamber of Commerce executive director Gayle Martinez. "We've had fires and poor snow seasons, which hurt skiing and brought down fiver levels." "There will be periods where tourism levels off," said Mayor Fred Peralta. He noted this is occurring throughout the Southwest.

There are recent indications that the economy is back on track, however. The first quarter of 1998 saw a 12 percent increase in gross receipts over the same period of 1997. Last year, the value of building permits for single family

residences rose to nearly $5 million. Taos Ski Valley assistant general manager Gordon Briner said the resort has averaged over 300,000 visits per season for the last eight years. Taos has over 80 art galleries, and the Taos Talking Pictures Festival is groping in prestige as well as size. Additionally, Taos now boasts its own air. line, Rio Grande Airways, which picks up tourists at the Albuquerque airport. Extensive surveys of past and potential visitors have made for more effective marketing of Taos. Martinez said the chamber is going after niche markets such as families and adventure travelers. The chamber developed a web site last year to help it appeal to those markets. "We can't believe how successful (the web page} has been," said Martinez. We're averaging 11,000 visits a month."

"The Internet has become our main focus for drawing business," said Debbie Dunn, director of sales at the Sagebrush Inn and Conference Center. The Inn's conference center can accommodate about 500 people for meetings. The Sagebrush now has its own web site and has been part of the Taos Lodgers Association's virtual vacation guide for two years.

As good as tourism has been to the economy, the town's leaders understand the importance of diversification.

"We're too dependent on the tourist industry," said Peralta. "If you expand your economic base, you allow the total economy to grow and improve wages through competition between industries."

The vast majority of jobs in Taos County are in the service and retail industry. These are also the lowest paying positions. Taos town manager Gus Cordova said business recruitment is one solution. He is looking to draw clean industries to the area. Yet there are natural and philosophical limitations to recruitment. "We can't do heavy, manufacturing here because of transportation capabilities, "Peralta said. "We don't necessarily want large business here."

Taos at a Glance

Gross Receipts, Taos County (in $000)

1996:                    $529,435
1997:                    $542,869
1997 (1st quarter):      $136,590
1998 (1st quarter):      $152,376

He raised concerns over the possible effects new industries could have on the environment and the town's limited water supply. Peralta also said tradition and culture are important aspects of the community that should not be overlooked when planning the town's future. The mayor said he would like to see expansion within industries that already exist here, such as film and telecommunications.

Taos is also looking to boost its agricultural industry. The town has set goals to secure funding to revitalize farm lands and create markets for agricultural products. Rey Torres is the program director for the recently refurbished Taos County Extension Office.

"Farming in Taos is a difficult way to make a living, partly because the cost of living is so high," he said. "Also, we have only about 41,000 irrigable acres in the county. Of that, we are losing quite a bit to housing with the influx of people."

Despite these problems, Torres said that farming and ranching are still viable means of employment for some and these occupations preserve the community's culture and values.

"When the Molycorp mines closed in 1986, we saw people take a renewed interest in the land they had," he said. "Farming here has long been a way of life more than a way of making a living. Cash receipts in Taos County in terms of agriculture are only about $9 million annually, but...the effect on the entire economy translates into about $27 million." Torres said most farms here are small, which limits their commercial potential but doesn't stop them from succeeding.