The Continuum in Action: Colorado’s Lodging Tax Shift and the Future of Destination Balance

Across the U.S., communities that rely on tourism are grappling with a fundamental question: Who is tourism for? For decades, the dominant model positioned tourism as an end goal in itself — success was measured in arrivals, bed nights, and visitor spending. However, in the wake of community pressures, workforce shortages, climate disruptions, and housing crises, this paradigm is shifting. A recent article in the Colorado Sun speaks directly to the issue of broader societal issues in mountain communities: 7 Colorado counties plan to ask voters to double or triple lodging taxes to pay for roads and police.

Colorado’s recent move to allow counties to raise lodging taxes and repurpose those revenues beyond tourism marketing is a striking example. And it illustrates the very dynamic at the heart of Continuum, a tool designed to measure and manage the balance between tourism economies and resident well-being.

Background

The Continuum tool was developed by the Insights Collective, a think tank comprising experienced professionals from the tourism, recreation, and resort economy sectors, formed during the COVID-19 pandemic. The Collective recognized that destinations needed more than traditional tourism metrics to navigate rapid shifts in visitor behavior, community sentiment, and economic volatility. Continuum was designed as a diagnostic and engagement tool to:

• Measure where residents perceive their community sits between the tourism-focused and resident-focused ends of the spectrum.

• Measure where government officials and community leaders perceive their community’s position between those two points.

• Compare those perceptions with where residents or leaders believe the community should be positioned.

• Identify the “departure gap” — the space between current reality and desired balance — which points directly to policy priorities and strategic interventions.

Unlike traditional tools, Continuum translates subjective perceptions into actionable, data-driven insights that help communities strike a balance between tourism’s economic value and resident well-being.

Application by NWCCOG and CAST 

The Northwest Colorado Council of Governments (NWCCOG) and the Colorado Association of Ski Towns (CAST) were among the first to test the Continuum tool. They observed growing concerns among residents regarding housing, workforce shortages, and the effects of tourism. Continuum helped reveal how residents truly felt about tourism in their communities, showing both shared challenges across ski towns and unique local differences.

Developed by the Insights Collective and tested by NWCCOG and CAST, Continuum has demonstrated its reliability as a guide for tourism communities in balancing the needs of residents, visitors, and local economies.

Colorado’s Lodging Tax Debate

Policy Reflecting Perception: In 2025, seven Colorado counties placed measures on the ballot asking voters to double or even triple lodging taxes in unincorporated areas. Enabled by Senate Bill 1247, these changes allow lodging tax revenues to be used not only for marketing but also for housing and childcare, emergency services, infrastructure, and conservation. This represents a structural pivot. Tourism dollars, once focused on driving visitation, are now being redeployed to strengthen not only community capacity but also infrastructure, systems, and services. While opposition exists from some in the lodging and tourism sectors, the broader signal is unmistakable: resident sentiment is shaping fiscal and policy choices.

The Continuum Lens in Colorado 

Colorado’s case demonstrates how the Continuum system can work in practice:

• Destination Analysis: Counties are re-examining tourism’s role not as the sole driver of prosperity, but as one part of a more complex equation.

• Community Engagement: Ballot measures invite residents to weigh in directly — a real-time expression of the residents' voice.

• Sustainability Metrics: Redirecting funds to housing, infrastructure, and conservation reduces friction with residents and strengthens resilience.

• Data Analysis: Surveys confirm broad support for shifting tourism revenues to local priorities.

• Scenario Planning: Lodging Tax Reforms Become Policy Experiments: What Balance Creates the Most Resilient Community?

Broader Implications for Resort Communities: Colorado is not alone. From coast to coast, resort communities face parallel challenges: housing affordability, infrastructure strain, residents calling for balance, and tourism organizations under pressure to prove community value. Continuum provides a language and measurement system for these shifts. It transforms heated debates into quantifiable insights, revealing where residents perceive balance or imbalance, where they desire consistency or change, and how far the community is from their jurisdictional leaders, or the current state is from the desired one.

The Strategic Takeaway 

Colorado’s lodging tax changes mark a turning point in U.S. destination management: Tourism is no longer judged solely on visitor metrics, but on its contribution to residents’ quality of life. Policy is catching up to perception — a community’s equilibrium is defined by how residents feel. Continuum helps communities anticipate and navigate these shifts, turning perception into actionable strategy.

Conclusion 

Colorado’s decision to redirect lodging taxes illustrates a fundamental truth: the future of tourism is resident-driven. Communities that understand and respond to that reality will thrive. Those who don’t risk deepening divides between visitors and locals. Continuum equips destinations with the intelligence to measure, interpret, and act — not just in the interest of tourism, but in service of the shared balance that sustains both economies and communities.

About the Author

Carl is a strategic thinker, thought leader, and innovator in the fields of tourism and outdoor recreation. He has worked and advised over sixty-five destinations throughout the country as an analyst and strategist. His interests include destination competitiveness, organizational change, destination and organizational culture, and strategy design. Carl is a trusted advisor to many CEO’s and senior executives. He currently serves as the President of the Insights Collective.

He enjoys riding his BMW motorcycle on two-lane roads throughout the West, mountain biking, white water rafting, and downhill skiing.

The Insights Collective

The Insights Collective is a think tank that focuses on research, insights, and strategy for tourism and destination marketing leaders. It aims to provide actionable ideas for the ever-changing environment and competitive world. The collective integrates multidisciplinary skills and experience to develop strategic frameworks and unique approaches to challenges facing the tourism industry. They offer a diverse collection of reports, articles, and research studies that provide in-depth analysis and valuable insights into community dynamics, resident perceptions, and  travel 

industry. The Insights Collective is also involved in research, data, innovation, and improvement services for social care, focusing on research and data, sharing and learning, and coaching and advice.