How to Rebuild Resort Economies, Post-Coronavirus
We’ve never experienced anything like COVID-19. It is a devastating crisis that is straining our families, healthcare system and economy. The toll has been painful and unprecedented on the travel industry, tourism service workers, and resort communities, whether in the mountains or on waterfronts. Yet, we must look ahead and fight on toward better days.
With a massive $2 trillion federal stimulus, needed resources will make their way to the public sector and many businesses and employees. Still, that expenditure is not a panacea for resort communities, many of which just endured a severely-shortened winter season and are likely looking at a blunted summer season. Perhaps even worse.
We don’t know when exactly, but here are five bold strategies to prioritize and jumpstart economies in resort communities, once we see social distancing in the mirror and a flattened curve that can ultimately create a normalcy for our industry and hometowns:
1. Main Street Matters
State and local governments need to open the toolbox now to turbo-charge Main Street businesses, once the reset button is pressed. Some actions are tougher: ease regulations, expedite approvals, and fast-track permits. Some easier: Extend bar hours or expand sidewalk dining. Suspend regulatory fees or defer utility bills. Business leaders should get out-of-the-box, too. Create a buying co-op for pricing efficiencies and access to a regional supply-chain. Collaborate to develop a shared commercial bakery or laundry, a micro-lending bank for entrepreneurs or an equipment and furnishings consignment warehouse.
2. Identify and Implement Alternative Income Sources
Finances in resort communities will be under pressure like never before. Creative fiscal solutions must move quickly. Could a $1-$2 per night hotel and rental fee be enacted for local healthcare services and infrastructure? Should localities require a paid “getaway pass” for visitors to utilize public parks and recreation facilities, defraying maintenance expense? For the private sector, inventiveness is equally needed. Could private “resort bonds” be sold to generate needed capital for major resort properties, in exchange for long-term investment returns and lifetime guest benefits? Put everything on the table and leverage creativity to fuel this recovery.
3. Create a Local WPA-like ResortCorps
During this transition period, let’s put our resort workers to work. Many are among our country’s most capable craftspeople and artisans. Beach clean-ups, boardwalk or storefront repairs. Construct new mountain bike trails, playgrounds or community gardens. Add murals or whitewater parks. A combo of cash payment and unique in-kind compensation can create paid employment, be it property tax deferrals, utility abatement, community college tuition credits, or daycare access.
4. Double Down on Livability
Top priorities are workforce housing and healthcare. Governments and agencies should get aggressive in this down time. Purchase distressed, discounted assets to re-purpose for housing, when the market turns. Downsize or simplify developments to get them across the finish line. In healthcare, this pandemic has tested readiness and resources. Let’s correct that. Create incentives and assistance for hospitals. Adapt vacant buildings to low- or no-rent community health and wellness centers, to share services and ease economic burdens on providers. Going forward, every community must have its own “strategic stockpile” of needed equipment, for pandemic, natural disaster or power shortage.
5. Ready an Inventive Marketing Strategy for the Reset
When we see light at tunnel-end, our resort communities must have these fundamentals rebuilt, to be ready again to welcome guests. We turn our attention to flipping the window sign to “Open for Business.” Consumer communication tactics and storytelling will assuredly be different. Marketing budgets may be reduced and the seasonal calendar upside down. With those days far ahead, this leads us to one place—building a marketing program now for a moment that we hope comes sooner, rather than later.
Most of all, it is a time for teamwork, solidarity, and preparation. As FDR famously said during World War II, “One thing is sure. We have to do something. We have to do the best we know how at the moment.” Today, we fight the coronavirus. Tomorrow, we will defeat it. Then, we get to the work of rebuilding resort communities of vitality and wonder, from sea to shining sea.
Top image via Unsplash.
About the Author
Mark Rivers is the President of The Bronson Companies, a real estate and economic development investment and advisory firm, with offices in Los Angeles, Boise and Austin. Rivers has advised resort, hospitality and community interests as diverse as Wynn Resorts, Hard Rock International, Eastern States Exposition/Big E Fair, Cornell Cooperative Extension, and Sandpoint, Idaho. He was the 2009 International Economic Development Council’s “Best Redevelopment and Reuse” Worldwide award winner.
This is Part 1 of a two-part series on resort communities recovering from the COVID-19 crisis. The second piece is focused on marketing and experiential opportunities and is available and entitled, “When The Window For Recovery Opens In Resort Communities, Do This.” You can contact Mark at mrivers@brixusa.com.