Local Musings

What Kind of Summer Will It Be?

After an uneven winter season for many local businesses and residents, there is a growing sense of urgency surrounding the importance of a strong summer economy. For many businesses, the next few months will play a major role in determining how the year ultimately unfolds.

One of the more interesting trends emerging in the visitor economy is the widening divide within the travel market itself. Higher-end travelers continue to spend at relatively healthy levels, while other segments appear increasingly cautious as ongoing economic pressures affect discretionary spending. From my perspective, there are three possible summer scenarios:

Scenario 1: A Difficult Summer Driven by Broader Economic Pressures Economic uncertainty, persistent inflation, higher interest rates, and overall consumer anxiety continue to influence spending behavior. In this scenario, travelers may shorten trips, reduce discretionary purchases, or postpone vacations altogether.

Scenario 2: A Strong Summer Fueled by the High-End Market Affluent travelers continue to prioritize travel and experiences, helping offset weakness in other visitor segments. Luxury lodging, premium dining, recreation, and experience-based businesses could continue to perform relatively well.

Scenario 3: A Mixed or Moderate Summer This may ultimately be the most likely outcome. Some consumers remain confident and willing to spend, while others remain cautious and price-sensitive. The result is a marketplace that feels uneven, unpredictable, and highly segmented.

Perhaps the best approach is to hope for a moderate summer, prepare operationally for a weaker one, and remain ready to capitalize if conditions exceed expectations. For businesses and community leaders alike, flexibility and the ability to adapt quickly may be the most important competitive advantage this season.

A New Community Award: South Lake Tahoe’s “Worst Commercial Real Estate Eyesore” Award

I am pleased, or perhaps disappointed, to announce a new community award I plan to hand out periodically: South Lake Tahoe’s “Worst Commercial Real Estate Eyesore” Award. The inspiration is simple. I have grown increasingly frustrated watching commercial properties sit vacant and deteriorate for years, with little or nothing done to improve them.

I fully understand that businesses close, relocate, or fail. Vacancies are part of any evolving economy. Change and transition are normal. What is unacceptable is allowing highly visible commercial properties to decay with little regard for their impact on the broader community.

These neglected sites create more than an unattractive streetscape. They affect community pride, shape visitor perceptions, and influence how potential investors and businesses evaluate South Lake Tahoe. In many ways, they impose a cost on the entire community.

The inaugural award goes to the abandoned gas station on Highway 89 across from the post office. At some point, the owner needs to either improve the property or sell it to someone who will. One would hope the city is exploring every available tool, including fines and code enforcement, to encourage action. Communities are judged not only by their natural beauty, but by the care they show toward the spaces they have already built.

Where’s the Money Going to Come From?

As Chair of the Economic Development Committee for El Dorado County, I have become increasingly aware that local governments must continuously ask themselves a fundamental strategic question:

Where is the next $100 million in revenue going to come from, and how are we going to get there?

Too often, local government becomes consumed by immediate issues, short-term pressures, and the loudest voices in the room. Those issues are real and deserve attention. But alongside those day-to-day demands, there must also be a disciplined focus on the community’s long-term economic trajectory.

Residents understandably expect strong public services, infrastructure, recreation, transportation, and quality-of-life investments. In most cases, they are not willing to see those service levels reduced. Yet as the cost of delivering those services continues to rise, communities must think strategically about future revenue generation, economic diversification, and long-term fiscal sustainability.

That means asking larger questions:

· What industries and sectors can realistically grow here?

· What types of investment should we be attracting?

· How do we expand the economic base rather than simply redistribute existing revenue?

· What infrastructure, policy, and leadership decisions made today will create long-term prosperity tomorrow?

Too often, not enough time is spent focusing on the broader economic picture because attention is diverted toward the crisis of the moment or the controversy of the week.

A truly strategic approach requires balancing immediate concerns with a long-term vision for economic resilience, community vitality, and fiscal sustainability. Communities that fail to ask these larger questions risk slowly falling behind financially while continuing to face growing expectations from residents, businesses, and visitors alike.

It’s a Wrap

Not to sound like an old-timer, but as I recently looked at the new Recreation and Aquatic Center, it struck me just how far this community has come since I first moved here.

Today, we take for granted that we have a modern recreation and aquatic center, a new special events center, and a community college that now feels more like a small four-year college, complete with student housing. We have bike trails, sidewalks, and public infrastructure that simply did not exist decades ago.

When I first arrived, there were very few bike trails and virtually no sidewalks at all.

Every community has its challenges, and South Lake Tahoe is certainly no exception. But from my perspective, this community has made tremendous progress over the years. Maybe not as quickly or as easily as many of us would have liked, but we have undeniably come a long way.

Carl Ribaudo is a columnist, consultant, speaker, and writer based in South Lake Tahoe. He can be reached at carl@smgonline.net.