Local Musings

· The cycle of change in South Shore. Much’s been written lately about businesses that have gone out of existence here in South Shore. Various restaurants and others have ceased operation, and as one might expect, it’s caused a level of interest among some concerned about the overall Tahoe economy. It’s important to understand that South Shore is in a transition period, and the result of that transition is some of the changes we are seeing. Businesses go out for a variety of different reasons. Some owners retire, and others are not funded adequately. However, many struggle to adjust to a changing tourism economy. It’s interesting to note that Dennys, a restaurant that had been there all these years, went out of business, yet not even 50 yards away, the bagel shop is busy with business every morning. That’s emblematic of the change and the need for businesses to adapt. One of the most challenging business and personal dilemmas is the ability to change and adapt. Business owners that started years ago became successful using a certain formula based on a certain tourism economy, and oftentimes, they’re loath to change that formula. Still, it’s precisely that change that needs to happen to stay relevant.

· How is the tourism economy changing? The visitor market is shifting and will continue to shift to a higher-yield tourism economy with fewer overnight visitors who tend to spend more. One other change that causes significant heartburn among residents is increased day visitors who often spend very little yet create traffic and crowing impacts. Think about these changes and their impacts on a business. For example, if you are used to selling a hundred pizzas a day and now sell fifty because there are fewer overnight visitors, but they spend more, how do you adapt and compete?

· Where are we going? Good question. It doesn’t seem like we’re going back to the pre-2019 era. The marketplace has changed too much; prices have increased significantly, and the lodging industry and others have learned to make good profits with fewer people and higher yields. Are we turning into Vail or Aspen? No, but economic and regulatory forces are pushing us in that direction.

· Taxes, taxes, and more taxes. Many proposed tax increases are in the news and on social media. Both sides have their advocates; seeing where it shakes out will be interesting. But why all of a sudden? Some will suggest that it’s the result of Scott Robbins, but he is just taking advantage of the moment. A deeper look may reveal that the changes in the tourism economy have caused significant disruption in people’s lives, and they are looking for some level of control. Ballot measures are one way to exert that control. There is no question that the South Shore generates lots of tourism spending, and more needs to find a way to meet community needs, though I am not sure these tax measures are the best way to do it. What is needed is a more holistic conversation on all the significant issues that are confronting South Shore and then figuring out the best way to do it. Change is coming one way or another.

It is a Wrap

· I’m sorry to see Tom Fortune leaving Heavenly. I thought Tom did a really good job with some tough seasons. Tom had a lot of credibility with the community that Vail Resorts themselves didn’t have. His “Fortune Friday” newsletters and videos with real information depicting the real situation that was going on in Heavenly were refreshing from the normal corporate speak we often hear. The new guy has some shoes to fill. Hopeful but skeptical.

· Have a great spring!

Carl Ribaudo is a columnist, consultant, speaker, and writer in South Lake Tahoe. You can reach him at carl@smgonline.net.