Branson works to even employment levels

The city of Branson is caught in a conundrum.

Area economic development leaders have been trying for years to even year-round work force levels and decrease the dependence on tourism - yet the tourism industry is the largest single component of the city's economy.

Now the entire issue is exacerbated by the impact of the recession; unemployment rates in Stone and Taney counties peaked at 19.7 percent in February before seasonal adjustment. That's up nearly 5 points from the same time in 2008.

As a comparison, unemployment rates in the Branson area April-October 2008 were below 6 percent.

Year-round economics

So how does a city reliant on the tourism industry smooth out the seasonal employment peaks and valleys and create what city leaders call a year-round economy? City Administrator Dean Kruithof said it's done through a combination of enhancing tourism efforts in the traditional off-season - generally winter - and continuing to develop nontourism businesses.

Kruithof pointed to projects such as The Mountain Complex, a secure storage facility and data center utilizing the area's unique topography.

Company co-owner Gail Hinshaw said the best example of the impact of the company, which previously was a more traditional warehouse business, can be seen in its parking lot.

"When we started moving toward this secure facility five years ago, we had three cars in the parking lot. Now there are 20 or more," Hinshaw said. "Cars in the lot mean people working, which means jobs, meals, et cetera."

He added that many of the nearly 30 people who work at the facility are employed by partner companies, including those that have data centers stored at The Mountain and the four fiber-optic companies, including SuddenLink and CenturyTel, that provide connectivity for those clients.

"Some of those people are in the area from out of town, which means they're staying in hotels. That's another economic boost," Hinshaw said.

Another example of potential for more year-round jobs is Branson Commerce Park. The master-planned, mixed-use business park just off of State Highway 248 will house a variety of office and warehouse businesses when completed. The problem is, developers aren't sure when that will happen.

Jerry Avery, principal with Kansas City-based developer Affinity Commercial Development Group, said the project is temporarily on hold because Topeka, Kan.-based Columbian Bank, the lender for the project, failed in August. Though Avery declined to disclose the estimated cost of the development, he said he's working to line up new financing.

Already, however, site work and infrastructure at the 200-acre site are in place and could accommodate 1 million square feet of business space - roughly equivalent to the size of Battlefield Mall.

"So not only do you have a tremendous amount of construction work in the area, it would involve the relocation of a lot of businesses into that market to occupy that space," Avery said. "You're going to have companies with regional offices there, businesses that relocate into Branson, and certainly some of the service-related industries that go with the entertainment industry could establish a base site in Branson as well."

Off-season tourism boosts

Even in the tourism industry, Kruithof said efforts are being made to boost numbers during traditionally slow months with programs such as Ozark Mountain Spring highlighting entertainment options in the early spring months.

He said the recent Great American Pie Fest, held April 24-25 at the Branson Convention Center, provided much-needed national face time for the tourism destination; "Today" show weatherman Al Roker hosted the event and did live weather broadcasts from Branson Landing during the day, providing what Kruithof called "15 minutes of free national exposure."

"I can remember when the tourism season ran from April to October," Kruithof said. He added that anecdotal evidence from tourism businesses shows the first few months of 2009 are better than first-quarter 2008.

Two tourism barometers - sales tax and tourism tax - indicate that tourists are spending more money in Branson. According to city tax figures, sales tax collections for April was up 16.5 percent to $466,521 compared to April 2008. Tourism tax collections for March - the latest month available at press time - was up 1.6 percent to $248,341.

"Last year at this time, the national news was saying all of Missouri was under water, even though the high water didn't affect us except for a short period at Branson Landing," Kruithof said. "Also, $4-a-gallon gas affected whether people wanted to travel."

This year, because there's not widespread flooding in Missouri, gas is cheaper and economic conditions mean people don't have as much to spend on travel, visitors are still seeking entertainment in Branson.

"People are saying they might not be able to go to Orlando, but they can certainly come to Branson," he said. "While people might be cutting back on other trips, they still want to get away and have a good time, and we're a value destination."

To that end, the city of Branson is advertising its attractions in direct destination cities - Atlanta, Dallas, Milwaukee and Minneapolis - served by the Branson Airport, set to open May 11.