“The market is softening in Southern Utah,” said Vicki Varela, managing director for the Utah Office of Tourism. “A lot of our hoteliers are seeing very big drops in their bookings. It’s been going on since spring, and we continue seeing those drops. And there are lots of reasons for it. But having co-op marketing money from our office so that they can tell their local story is going to be a huge part of them faring well through this soft economy.”

Varela said some factors contributing to the decline in tourism are gas prices, the war in Ukraine, the softening global economy and inflation.

“These are really challenging times for our industry,” she said.

Shayne Wittwer, chief executive officer of Wittwer Hospitality in St. George, said rising gas prices had an immediate impact along with inflation as people became more cautious with their spending due to the uncertainty of their discretionary income and the increased cost of travel.

The current situation contrasts with what the area experienced during the height of the COVID-19 pandemic when Southern Utah saw record visitation, as out-of-state visitors swarmed to the area’s adventure-centered locations. But as international travel opens up and urban travel regains popularity, people are traveling elsewhere, he said.

“Tourism destinations are competing to regain their normal traveler patterns while some of the state’s marketing hasn’t been as direct because of 2021’s results,” Wittwer said. “The exchange rate has made it less attractive for European and other international travelers to visit, so the number of foreign tourists is down and not expected to return.”

The current decline in tourism affects all parts of the economy, Wittwer said, adding that in Washington County, tourism is “the tail that wags the dog.”

“St. George and Washington County’s economy is heavily impacted by tourism,” he said. “We can look at the thriving construction industry, booming real estate market, popular retirement destination, healthcare, retail, etc., but in many ways, it all starts with tourism.”

It’s when people visit and fall in love with the area’s natural beauty, proximity to national parks, variety of trails, sunshine and welcoming people that leads visitors to eventually call St. George home, he added.

Tourism-based businesses employ thousands of residents who purchase goods and services from local businesses, and as St. George experiences a decline in visitation, businesses reliant on tourism immediately feel it, including restaurants, shops, guides, outfitters and hotels, Wittwer said.

The hundreds of dollars tourists spend daily boosts businesses and adds to the sales tax and tourism tax collections. These taxes are used locally and on a state level to build infrastructure and improve the quality of life for residents. A strong tourism economy also reduces the amount of tax each family pays, Wittwer said, adding that in 2020 the average Utah household received a $1,112 tax benefit from tourism.

The director of the Greater Zion Convention and Tourism Office, Kevin Lewis, said this decline in visitation comes in the wake of significant growth.

“A softening in visitation has a ripple effect in just about every other economic driver in our community,” Lewis said. “We have seen extreme prosperity over the past 18 months as a direct result of the successful tourism economy. This has led to business development, job creation, increased property values, enhanced worldwide perceptions of our community and improved amenities and services for residents.”

This downturn is a reminder of how quickly things can change, he said, adding that Southern Utah must maximize the revenue generated by tourists to create a superior experience for visitors and residents.

Lewis said his office “worked tirelessly” to put things in place for a strong fall season.

One of the chief influencers on the quality of life comes from tax revenue gained through tourism, he said, adding that the year-over-year tourism in Southern Utah looks strong.

“Despite some of the misinformed narrative circulating these days, the visitor economy actually reduces personal taxes rather than increases them,” Lewis said. “The revenue it pumps into our businesses keeps our economy moving.”

To compensate for the wane in tourism, Wittwer said people need to understand that services cannot be kept on a shelf and sold later.

“When a room isn’t sold, a table left empty or a time slot with a guide and outfitter for outdoor adventures is left empty, the opportunity is gone,” Wittwer said. “Instead of focusing on what we’ve lost, it’s important to make the best of what’s to come. This means bringing new events and embracing what the city and county have done.”

He suggested marketing be more aggressive and work as an industry and community to keep Washington County a world-class tourism destination.

One example of how Greater Zion and Tourism Office’s target marketing is to focus on German visitors, said Joyce Kelly, international marketing manager. Germans have a long-standing reputation as one of the area’s leading international countries for visitation.

“The German visitor enjoys what we offer: outdoor spaces, hiking, adventure and canyoneering,” Kelly said. “They also have a great appreciation and respect for our public lands and tend to stay longer and spend more money in the area.”

General manager of Red Mountain Spa Tracey Welsh said that while they have experienced a lighter summer season, she expects to see a good fall.

“When occupancy is lower, our businesses react accordingly, which may impact staffing or the timing of projects we plan,” Welsh said. “This also impacts the tourism tax dollars that our county receives, and uses for tourism-related projects and improvements throughout the area.”

Recently, Washington County received a portion of the state’s cooperative marketing grants from the Utah Board of Tourism Development. The board awarded $5.2 million to 59 destination marketing organizations and travel-related nonprofits in 24 counties throughout the state, according to a press release. The co-op program aims to leverage state and partner dollars to attract visitors and expand the tourism economy.

The breakdown for the funds received to assist in marketing the area includes $240,000 for Greater Zion Convention & Tourism’s Visitor Guide, $9,365 for Greater Zion Convention & Tourism Meeting Planner, $183,226 for Tuacahn Center for the Performing Arts, $130,000 for Utah Shakespeare Festival, and $182,400 for Visit Cedar City – Brian Head Destination, according to the news release.