In February, the Michelin Guide announced that it would expand its reach across Colorado, awarding its coveted stars and recognition to restaurants from the Front Range to the Western Slope. Until now, that recognition was restricted to Denver, Boulder, Aspen, Vail, Beaver Creek and Snowmass Village — much to the chagrin of restaurants in other cities.

Nearly 40 communities this year are budgeting $77 million in new or redirected lodging taxes to support housing, child care and roads while spending for tourism promotion reaches record lows.

On this episode of View From Afar, host Michelle Baran talks with Colorado Tourism Office director Tim Wolfe about why the state that invented destination stewardship is having its biggest year yet—and what the rest of the country can learn from it.

Two years of slight growth are a warning call the state’s $29.2 billion tourism economy is losing steam

Colorado’s high country towns are cutting budgets after a slow winter and sluggish summer pinches critical sales tax revenue.

Spending in 18 Colorado mountain towns fell in the winter of 2025-26, reaching a four-year low. It’s the second winter in a row that the 18 communities have seen wintertime declines in net taxable sales tracked by the state.

Wildfire smoke illustrates the economic risks. August was once a reliably busy tourism month. Businesses could hire
workers, schedule events, and forecast revenue with confidence. Today, a nearby wildfire or shift in wind
direction can quickly trigger cancellations.

This uncertainty has a cost. Businesses must prepare for peak demand without knowing whether it will materialize.
As a result, workers face unstable hours, governments receive less predictable tourism-tax revenue, and
business investment becomes riskier.

Read more from Todd Montgomery from Oregon State University, reach Todd at montgomt@oregonstate.edu

While Sundance Film Festival pulls spotlight to Boulder, Colorado’s existing festivals can tap into new tax credits, industry groups.

For Delta, The theater is more than just a Main Street oddity that attracts a tourist or two. “Delta’s a little tiny town, and so much of the community kind of lives and dies with the health of Main Street,” Wade said. “So having a theater, we’re not only attracting business to ourselves but also to nearby restaurants and small businesses.”