Mayflower Mountain Resort has long been the “most threatening problem” for Summit County’s tourism economy

An aerial view of the Mayflower Mountain Resort development project underway near Deer Valley Resort off US 40 in Wasatch County.David Jackson/Park Record

Occupancy numbers in the Park City area are expected to decline this year, although Summit County is still in good shape. But tourism executives fear the downward trend could only continue if a shiny, new resort is scheduled to open outside the county’s borders in late 2024.

The Mayflower Mountain Resort is still under construction, but when it opens it will have 17 lifts and 4,000 skiable acres, which in the summer months will also have about a dozen hiking and biking trails along US 40 near the Jordanelle Reservoirs features. The 1 million square foot project will include retail and hospitality options, hotels, private condominiums and a day lodge.

According to Park City Chamber/Bureau President and CEO Jennifer Wesselhoff, there are also expected to be around 3,000 rentals per night.

“Just around the corner, but across county lines, it’s going to have a huge impact on visitor numbers and potentially visitor spending in Park City, but also given that Mayflower will require about 5,000 employees to operate when fully implemented,” she said. “I think it’s probably the most threatening problem for our tourism economy that we’ve faced in a long time.”

Mayflower draws interest but also raises uncertainty for Summit County as tourism impacts other tax collections.

Wesselhoff met with Summit County Council on June 28 to discuss the state’s temporary room tax, which is a fee for renting a room at a hotel, motel, inn, or similar tourist lodging for fewer than 30 consecutive days days. The money can be used to promote tourism through leisure activities or film productions. It can also be used for related projects like recent renovations at the Park City Visitors Center.

The tax raised about $18 million in 2022, with nearly $13 million in revenue so far this year. Since 2011, when around $5 million was collected, the temporary room tax has increased tremendously.

Guests at the Mayflower will likely still visit Park City’s Main Street, which will increase the area’s sales tax, but the county will lose temporary room tax funds if visitors choose to stay in Wasatch County.

While county tax revenues related to tourism, such as Taxes such as restaurant or entertainment taxes, arts and parks taxes have increased compared to recent years, the latest reports from June show that the economy is uncertain. According to Wesselhoff, temporary tax revenue for Zimmer fell 44%, while other revenue fell 7%.

The lodging industry also struggled to maintain occupancy levels after the ski season; with reduced bookings reported every month this year except January and April compared to 2022. Wesselhoff cited the return of the Sundance Film Festival and the extended ski season. Average occupancy over the last month was around 15%.

She added that the bulk of taxpayer money comes in during the first five months of the year, with 75% of Zimmer’s temporary tax revenue coming from Park City. Almost all of the remaining funds come from the Snyderville Basin, with about 1% coming from other parts of Summit County.

Although occupancy is falling, room rates have risen.

The average hotel room was around $970 in February compared to $845 last year. Prices after the ski season are lower. The typical daily rate was about $295 in May, compared to $278 last spring. The cost should not exceed $400 from July to November.

Wesselhoff said raising hotel room rates is crucial to help contribute to the temporary room tax amid low occupancy, but expressed concerns that daily rates would gradually fall. The daily rate is also crucial to setting yourself apart from the competition as they try to attract budget travelers – especially amid economic uncertainty.

In Wasatch County, Mayflower Mountain Resort is under construction. Park City Chamber/Bureau officials raised concerns that the development will jeopardize Summit County’s tourism economy when completed in late 2024.David Jackson/Park Record

Data provided by the Chamber/Bureau suggests travelers are still concerned about the coronavirus, as well as fuel and air prices, personal finances, transportation costs and inflation, which could affect their travel decisions. Around 30% of those surveyed stated that they were financially worse off than they were last summer.

Strategic planning is essential as tourism industry executives look to the future.

Wesselhoff noted that the Chamber/Governing Board is considering several factors, including a recession, as it prepares for the years to come. Employees are prepared for challenges such as competing with Salt Lake City for the same market.

Visit Salt Lake recently increased its budget by 50% or $21 million for next year. Meanwhile, the Chamber/Bureau’s budget is usually a forecast of what they expect to receive from the temporary room tax in the following year. Wesselhoff said officials would focus on longer-stay regional visits in the summer, with a larger, national campaign planned for the winter.

Officials also hope to use the tax funds to better position Summit County if the 2030 or 2034 Winter Olympics are held again.

The staff are considering integrating the sustainable tourism plan and gaining approval from the entire community for such an event. The Chamber/Office has also recently launched its new grant program and expanded its county partnerships.

“Our vision encompasses our Olympic spirit, our love of nature and the health of our environment as the heart of the Summit County experience,” the plan’s mission statement reads. “We see a future where local people, governments, business groups, nonprofits and land managers share a common mission to connect tourism with responsibility and conservation, and to engage visitors as partners who care about our communities.”