From: WAND_M@gold.colorado.edu
Subject: Amendment fallout could cut into '93 profits
Followup-To: amend2-discuss@cs.colorado.edu
Originator: doherty@ucsu.Colorado.EDU
Organization: University of Colorado, Boulder
Distribution: usa
Date: Thu, 28 Jan 1993 00:29:40 GMT

The Denver Post
January 24, 1993

By Michelle Mahoney, Business Writer

To understand two of the biggest issues facing Colorado's tourism industry in 
1993, you only need to look back two months to the November general election 
and the controversy that since has surrounded the passage of Amendments 1 and 
2.

Amendment 2, which prohibits protected status or quotas for homosexuals, has 
triggered boycotts of Colorado by several U.S. cities and national 
organizations.

Amendment 1 restricts the spending of public money and requires voter approval 
of tax increases and new debt.  Its passage could result in a funding gap for 
the Colorado Tourism Board unless alternative money is found beginning July 1 
when the board's current funding expires.  The result could mean a November 
public referendum.

Both issues have focused new attention on Colorado's huge tourism industry, 
which accounts for about $6 billion in annual retail sales and nearly 10 
percent of the state's jobs.

Recently released figures show that conventioneers and business travelers alone 
helped boost metro-Denver hotel occupancy rates to near-record levels in 1992.

More than 5 million hotel rooms were occupied last year by guests who paid an 
estimated $300 million in room charges, according to a year-end survey by 
Denver hotel consultant Montgomery & Associates.

But, analysits warned that the effects of Amendment 1 and 2 could paint a 
different picture for 1993.

Meanwhile, the state's ski industry is hoping to dodge any major impact from 
Amendment 2-related boycotts and break the 1991-92 season's 
10.4-million-skier-visit total.

Colorado Ski Country USA has predicted that skier spending at the state's ski 
resorts will hit a new record in 1993, fueled by a recovering national economy.

"We had a recordbreaking year in 1991-92 in terms of skier numbers and the 
impact on the Colorado economy overall, and this year's holiday season shows 
signs of a recovering economy both within Colorado and nationwide," said Cathy 
Kruzic, a spokeswoman for Colorado Ski Contry USA.

Colorado's tourism industry, already experiencing a strong winter ski business, 
is hoping for continued economic improvements to fuel a strong summer season as 
well.

The opening of the new $3 billion Denver International Airport next October, 
the Colorado Rockies' inaugural season, as well as pending negotiations to 
expand air-travel agreements between the United States and at least a half-
dozen foreign countries, all are expected to increase tourism to Colorado.

Nationally, the outlook for a tourism resurgence is improving.

Recent government reports showing decreased unemployment data support 
expectations of a moderate economic recovery and an improving job market in 
1993.  When consumer confidence is up, vacation travel also tends to rise.

1993 also is likely to bring continued deep discount travel deals on air fares 
and hotels.

However, deep cost-cutting by the airline industry isn't likely to permit the 
same bargain-basement fares seen in the fare wars' heyday in 1992.

     Denver Post Business Writer Steve Raabe contributed to this report.

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