July 15, 2009

Recession ‘cataclysmic’ for destination resorts

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For insight into how the economic downturn is hitting those who live in the region’s upscale resort communities, and in turn, how it plays out – or not – in continued development, read this grim assessment of how Aspen will ride out the recession in the Aspen Times. Analysts talk about “lost levels of prosperity” and resorts that are vulnerable as they have not been in previous economic downturns due to other social and demographic pressures.

Ford Frick, managing director of BBC Research and Consulting in Denver, told the paper he believes “the recession and its aftermath will be cataclysmic for destination resorts. He doesn’t foresee a strong revival of traditional tourism. Participation in virtually all ‘skill sports,’ such as downhill skiing, is declining among younger populations. And as Baby Boomers age, they are leaving the sport. Resorts will settle to a new level of business, Frick said, and it will likely be ‘painful.'”

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