Save Highlands conducts impact study of STRs

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  • With Highlands spending large amounts of money to bring people to town, the group said they are worried about the unintended consequence of inviting people to town but making them stay outside of the city limits if there are no short-term rentals available in town.
    With Highlands spending large amounts of money to bring people to town, the group said they are worried about the unintended consequence of inviting people to town but making them stay outside of the city limits if there are no short-term rentals available in town.
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How much of an impact do short-term rentals make on the economy of Highlands? That is the question that has been asked since the beginning of the discussion of STR’s began last August, and has yet to be answered.

Save Highlands took it upon themselves to find answers by conducting an impact study and according to the group, the results would be devastating if the town were to ban all short-term rentals.

“Highlands has historically been a community that sees concern, shares it, talks about it, and works together to resolve it,” The group said in a statement provided by David Bee. “This was different. Short-term rentals were put in front of the firing squad so abruptly and it was dumbfounding to us that the Town would take such a swift and drastic action based on the complaints of a few loud people, without exploring the ramifications to this community as a whole, a community that undeniably was built, made vibrant, and thrives off the tourism industry. We took it upon ourselves to look at the impact of the economy on our community, because no one else was interested in doing so. We did this as a way to shed light that this idea of shutting down short-term rentals is way bigger than one person being annoyed by a renter making noise (an issue which there are already laws and recourse established to deal with.) The study is about our communities’ shops and restaurants, the owners of those establishments, and the workers at those places.”

When first thinking about doing a study, the group said the goal was to have reasonable evidence that a study should be done.

“Studies are costly and we in no way wanted to shoot from the hip and declare ‘do a study,’ so we found a group of business-minded people who also love the area and asked them to put their expertise together,” The group said in the statement. “Those sources and common business sense put together a rough draft study that showed dire consequences if a rental shutdown occurs. Conservative numbers show short-term vacation renters spend $165,000,000+/- on rent and downtown; more in town than on rent evidence points to. A second model showed the spending to be $37,000,000. Due to, among other things loss of local jobs, there will be a $19 million hit to local businesses, and if you add the economic multiplier (which is a fancy way of saying the money spent in town gets spent again and again in town, a person buys at a shop, the shop pays taxes and hires people, they eat lunch in town and then buys gas, etc.) then that number impacts our town to the tune of $190 million.

“So, whether it’s $165 million, $37 million or $190 million; any number you choose, it shows this is a serious and huge issue. We want people to consider the draft economic work that has been done, but we compel the leadership of our town to think through this and hire an expert firm to help.”

To find the data for the study, the group said they used several different sources including the Travel and Tourism Research Association TTRA, a leading advocate for higher standards in travel and tourism-related research, analysis, and marketing, Daniel J. Stynes’s 52 research works with 557 citations and 1802 reads, including Impacts of Visitor Spending on the Local Economy, RIMS II tabulations cited by authors using the Bureau of Economic Analysis, USTRAVEL.org, PSU.edu, millionmilesecrets.com and World Travel and Tourism: The Comparative Economic Impact of Travel Tourism.

When talking with business owners about the impact of short-term rentals, the group said the study isn’t telling the owners anything they don’t already know.

“Most of the discussions have been batted around back and forth between the business owners themselves but we do get snippets of the general feeling via word of mouth, forwarded emails, and even some direct questions,” The group said in the statement. “I don’t think it takes an economist to know this is not good for their business. This study isn’t telling them anything they don’t already know but it is quantifying the uncertainty for them. The result has been that we’ve won some of their support and many who were silently supportive of Save Highlands in the beginning have become a bit more vocally and financially supportive instead of wishing to remain anonymous. I think they realize that while this fight is directly targeted at the short-term rental owners, they’re collateral damage.”

When asked how he felt about the impact study showing the projected losses, President and managing director of Old Edwards Inn Richard Delany said it was an eye-opening figure.

“It is a real eye-opening figure for the owners of our small businesses and town overall, and the repercussions are more widespread than the huge loss of revenue and clientele for our businesses,” Delany said. “It means loss of local jobs, not only for the business community but for the network of local workers that earn a living by supporting these rental homes—the property management companies and their employees that clean the homes, take care of the landscape, and perform maintenance and upkeep. Particularly during a time 

of unstable economy, having both the business owners and local laborers facing possible loss of livelihoods as we move into a recession paints a pretty dismal future for our town.”

Krysti Henderson, owner of the Cake Bar, agreed that her business would greatly be affected.

“Vacation visitors stock their pantries and enjoy our products, as do repeat visitors,” Henderson said. “The drop in local retail demand would affect us greatly. A revenue decrease would be upwards of $85k annually, conservatively, without the shopping generated through STRs.”

For Molly Grace and Allyson Builders owner Stephanie McCall, small businesses depend on the income from the STR community.

“Highlands small local businesses depend on the income from the STR community to prosper and attract our young people to come back here and live and make their careers,” McCall said. “Many of the STR homeowners have family ties and have a love for this community. They improve their homes, which in return improves the quality of neighborhoods.  We love our town and only want what is best for all, but I believe we need this income for us to continue to thrive and have all the amazing restaurants and places to shop for the locals and our visitors.”

The group said this study is important to the residents of Highlands because banning short-term rentals could hurt 295 people directly.

“295 people will lose their jobs in town,” The group said. “If unconsidered the town will hurt 295 people directly. Two hundred ninety-five people’s jobs are on the line, and we are having trouble getting our local government to consider this threat? Why? Why will they not conduct a study and find the truth about the impact of their choice?

“Much has been said about the need for housing for workers in town. We agree that is an issue to work on, and we want to defend the rights of those workers to have jobs to go to. These are real lives. Real people. It is irresponsible and flat out negligent that we’d knowingly let this happen. That we would let our beautiful, vibrant and burgeoning town turn into a shell of what it is today is simply unfathomable.

“An argument was given a few months back at a Town Hall Meeting romanticizing the days when you could get a last-minute reservation or a store front parking spot. The idea that we want Main Street parking empty like the good old days is a farce. People remember easy parking but not the lack of shops and great food. So many of these businesses simply will not survive going into a potential recession with an added loss of $122k annually.”

With Highlands spending large amounts of money to bring people to town, the group said they are worried about the unintended consequence of inviting people to town but making them stay outside of the city limits if there are no short-term rentals available in town.

“Highlands spends large amounts of money to bring people to town. There are advertisements for wine festivals, music festivals and high-end craft shows, in addition to just visiting the Town of Highlands for a vacation,” The group said. “Now we will be inviting people to come but telling them they have to stay outside the city limits? The unintended consequence of this is that Highlands could end up as a tourist destination for only day trippers and motorcycle clubs passing through. The renters who come to the town bring families, spend big money on food and shops, and do pricier things. They are the ones who rent homes. We are the beneficiary with better shops, restaurants and such, supported by them.”

Despite that the issue is ongoing and could be ongoing for a while, the group said they are willing, as they have been from the beginning, to sit down with the town, other STR groups and other residents to have a conversation.

“In short, we did a study to illuminate the serious threat and high risk that an unconsidered decision might bring upon the businesses, the workers, and the locals who love what we have here,” The group said. “If the town chooses to say goodbye to the families who rent homes here, we will say goodbye to and seriously impede the livelihoods of many townspeople. All these nice restaurants will not be supported by day trippers, motorcycle clubs and the few full-time residents that remain in the shell of what is now a vibrant and wonderful place. Save Highlands is made up of local homeowners and local full-time residents and we have been barred from any conversation. For us justice is the only option left. We did not want to start lawsuits, but if we are not allowed to sit at the table with our neighbors and speak as community members, we have no choice. Do you know that it has been publicly stated that the doors are open but not one time has a conversation been allowed? The doors are closed.”

- By Christopher Lugo