Why It’s Happening: The Challenge for Ashland

Tourism has long been one of Ashland’s economic engines. Many businesses — hotels, B&Bs, restaurants, galleries, outdoor shops — rely on visitors coming for theater, parks, wine, or just enjoying our beautiful town. But there are warning signs: revenue from overnight lodging (Transient Occupancy Tax, or TOT) has dropped significantly since 2019. Wildfire smoke, climate events, the pandemic, and changing visitor patterns have all put pressure on tourism, making it harder for some businesses to plan reliably.

Because some of the city’s tax income depends on tourism‐related lodging and food & beverage taxes, drops in those areas ripple into city services, budgets, and small businesses. When fewer people stay overnight or eat out, less money comes in for infrastructure, parks, public safety, and more. That means in tough years, Ashland’s ability to maintain services becomes fragile.

What We Can Do (Policy Ideas & Actions)

Here are some ideas that can help Ashland build more stability and share the load, so economic ups and downs hit fewer people hard.

1. Economic Diversification Beyond Tourism

• Recruit or support industries that create jobs, are less seasonal and are less sensitive to external shocks — such as health services, technology, and speciality food manufacturing.

• Think about how to make Ashland attractive not just to tourists, but also to people who want to live and work here year-round.
  
  

2. Support Local Use & Local Spending

• Build stronger ties between businesses and residents so locals contribute year-round.

• Help promote “shop local, eat local” campaigns. If more businesses are sustained by local support, they’ll be less vulnerable when visitor numbers drop.
  
  

3. Strengthen Small Business Resilience

• Provide training for small businesses in crisis planning, digital tools, flexible service models.

• Offer incentives or relief (temporary tax waivers, grants) during off-seasons or when unexpected events hit (smoke, drought, etc.).
  
  

4. Diversify the Visitor Base

• Encourage events outside the peak season (e.g. fall, winter).

• Promote outdoor recreation, wellness tourism, cycling, food popup events, and art shows so it isn’t just OSF or summer that matter.
  
  

5. Build Robust Forecasting & Risk Planning

• Have city budgets include “rainy day” reserves tied to fluctuations in lodging and food tax revenues.

• Monitor smoke, wildfire, climate-related risks, and plan for those, including communication strategies that reassure visitors and locals.
  
  

Why Taking Action Matters

When Ashland leans too heavily on tourism, then seasons of smoke, disease outbreaks, or changing travel trends hurt the whole community. Jobs vanish, businesses close, and city services suffer. But with thoughtful shifts—encouraging more local support, diversifying the economy, and planning for disruptions—Ashland can enjoy a steadier base. That means more security for people working in hospitality, more reliable income for local shops, and better budget stability for parks, libraries, and road maintenance.

In the end, reducing dependence on one fragile source of income doesn’t mean giving up on tourism. It means making it a part of a resilient, mixed economy so that Ashland can thrive — no matter what comes its way.