Here’s how the COVID-19 crisis is affecting Whatcom County tourism
A steep decline in Whatcom county tourism amid the COVID-19 crisis could mean less funding for public works and events.
The current crisis has ravaged the tourism industry, depriving the county of tax revenue that benefits schools, infrastructure, events and promotional efforts, said Sandy Ward, president and CEO of Bellingham Whatcom Tourism.
Bellingham expects a $7.6 million, or about 9%, shortfall in the city budget as of the most recent economic forecast from a May 18 city council meeting. A large portion of the shortfall resulted from decling sales tax revenues that can be impacted by tourism.
Lodging taxes on hotel and motel stays fund about 85% of Bellingham Whatcom Tourism, the organization that promotes the county as a travel destination, and the current crisis has forced extreme cuts, Ward said.
To compensate, workers have been laid off, furloughed or taken a 20% pay cut, as Ward did. Despite these measures, the organization is likely to see a massive budget shortfall in 2021 that could impact its promotional efforts when the tourism industry eventually begins to rebound, she said.
Hotels in Whatcom County have seen noticeable declines in occupancy since the pandemic started. The Chrysalis Inn and Spa, a leisure hotel in Fairhaven, saw substantial decreases in midweek travelers. That decrease has since leveled out to an about 50% vacancy rate, said Mike Keenan, owner of the Chrysalis.
Keenan attributed the decline to a lack of midweek business travel. Despite the ongoing crisis, the Chrysalis is usually full on weekends, he added.
However, most people staying at the Chrysalis are coming from within the state and nearby states rather than longer distances.
“More than 50% are probably coming within 100 miles of here,” Keenan said. “They’ve been tied up for three months with the virus so they’re looking to get away for just a few days. So, we are not getting the long-distance traveler like we did last year, at this time, Europeans and that sort of thing. We are not seeing any of that.”
Ward said most of the tourists the county can expect for now are coming from locations within driving distance. With the Canadian border closed, Western Washington University moving online and ever-present safety concerns, there are far fewer people regularly coming to Bellingham.
“All of the experts in the travel business are telling us that, it’s a health crisis and so people are still afraid to get exposed to the virus and so they don’t want to go very far from home,” Ward said. “A lot of them don’t want to go far enough where you have to use a public bathroom to get there.”
Smaller cities that are less dependent on tourism, might fare better than Bellingham, but they are not immune.
Ferndale usually brings in about $65,000 in tax revenue from hotels and motels but is currently on track to bring about half that amount, said Ferndale communications officer Riley Sweeney. However, that amount does not include sales tax, which can be impacted by tourism and be a large part of city budgets.
“Since many Ferndale residents shop down in Bellingham, sales tax is not a huge part of the city of Ferndale’s budget,” Sweeney said. “So, with the COVID-19 outbreak we are not getting hit as hard as say Bellingham or Blaine… So, they’re going to be making much more difficult decisions than we are.”
Sweeney said revenues from hotels and motels are reserved for tourism related expenses in Ferndale. As a result, the decline in revenues will decrease the amount of grant money the city has to offer for events and ideas promoting tourism, he added.
Whatcom County is still in Phase 2 of Gov. Jay Inslee’s reopening plan, meaning non-essential travel is limited, restaurant capacity cannot exceed 50% and no more than 5 people outside a household can gather.
During Phase 3, recreation facilities can open at less than 50% capacity, groups can reach up to 50 people, restaurants can operate at 75% capacity and bars can open at 25% capacity.
Yet, even if the county reaches Phase 3, the tourism industry is likely to continue suffering until there is a vaccine to allay people’s fears, Ward said.
Bellingham Whatcom Tourism has largely cut its promotional efforts. Instead, they have pivoted to informing visitors and businesses how to stay safe, Ward said.
To that end, Bellingham Whatcom Tourism has developed guidelines for safe visiting and is working to develop a public safety pledge for residents, businesses and visitors to adhere to, Ward said.
“We really want to amplify what the health department is doing because we’re responsible for promoting the entire county,” Ward said. “It is a shared responsibility for our businesses, our residents and our visitors to make sure that everything is safe. That includes wearing a mask and keeping physical distance and washing your hands.”
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