Tourism remains key to economic future

Conference looks for long-term answers

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As Page and Northern Arizona prepare for the eventual closure of Navajo Generating Station, it will take a team effort to make up for the economic impact from the region’s largest employer closing.
During the second Regional Economic Outlook Conference hosted by The Chamber Page Lake Powell last week, several speakers discussed the opportunities and challenges facing the area.
John Stigmon with the Economic Collaborative of Northern Arizona, presented findings from a survey he began taking a year ago during the first conference. Stogmon and ECONA met with more than 300 business owners, representatives of the Navajo Nation and others from Northern Arizona and Southern Utah.
“NGS is going to have a dramatic impact on these communities,” Stigmon said. “The commodity industry is going away. What’s replacing the commodities is tourism.”
Stigmon said tourism will remain the primary economic engine for the region, adding there is limited industry in Page, pointing to Page Steel and Yamamoto Custom Baits.
Stigmon said he found several distinct challenges to bringing new businesses to Page. One is the distance between Page and bigger cities. Affordable housing was another. One that is not spoken of much is elements of racism between the Navajo and non-Navajo. Stigmon said he heard the racism goes both ways.
“There needs to be an equal effort between Page, Kanab and the Navajo Nation to share your culture,” Stigmon said. “You don’t need to change your culture, just share it so people understand.”
Another challenge is a trained workforce for businesses, whether it’s tourism related or not.
“There is a bountiful workforce, but it has to be trained,” he said. “The Navajo Nation has 40 percent unemployment, but they have to be trained.”
Perhaps the biggest challenge, Stigmon said, is making tourists feel welcome, not just at Lake Powell and the national monument, but in Page.
He explained that the downtown area of Page is not welcoming. He said if the city and local businesses partnered to make the downtown area more attractive and welcoming, it could have a big economic benefit.

“Rebrand yourself as a destination and not just a stop along the way,” Stigmon said.
If Page was successful in changing the feeling from a place to visit to one that is fun all around, it could also eventually lead to new businesses.
“The strategy is convincing your visitors based on a lifestyle, and they will bring small businesses with them, they will bring industry with them,” he said.
As an example, he pointed to Yamamoto Custom Baits. Gary Yamamoto moved to Page because he loved the area. He first opened a small business and then later opened his bait business, which ships baits worldwide.
But ultimately, the key to Page will be tourism.
“I think the tourism industry in the region can grow if it improves, and needs to improve,” he said.
Ruth Ellen Elinski with Local First emphasized future success in Page will be tied to the success of small businesses. Mom-and-pop businesses, she said, are always the key to success, whether you’re looking at Page or Phoenix.
“Individual businesses, the small businesses, are really the ones creating jobs,” she said. “This is just the simple economic explanation about why to support independent businesses.”
She explained, if you have 15 Starbucks versus 15 local coffee shops, the impact on the economy is vastly different. While both will hire baristas, only the local shops will use local accountants, payroll services, attorney, web providers and the like.
Wade Anthony Rousse, an economist at NAU, said the key to the economy in Page and Arizona is simple. Like it or not, the local economy is tied closely to the national economy, he said.
“These are interesting times, and it trickles all the way down to Northern Arizona, Coconino County and Page, and it starts at the top,” he said.
Rousse explained while the national economy has been recovering, the improvement has been slower than almost any other recovery in history. And there is one reason why — debt.
“This is the weakest economic recovery in history since the Great Depression,” Rousse said. “Why? Do we have a robust economy? The answer is no. We didn’t get a robust recovery, but we did get more debt.”
Rousse said the decision to increase the debt may have been the right one, but it has slowed the recovery.
In Arizona, the recovery has mirrored the national movement. The key in the state has been two areas well known in Page — tourism and leisure and hospitality.
“There’s a big increase in hospitality and a big increase in labor participation,” Rousse said. “The wage ratios are finally starting to catch up.”
More than 100 people attended the conference at the Courtyard by Marriott in Page. The theme was “Inform, Engage, Act.”
The idea was to present information as the starting point. Over the next few years, more will need to be done to get to the action role.
Coconino County Supervisor Lena Fowler said the conference will help as the community looks for ways to offset the impact when NGS closes.
“This conference was another tremendous success thanks to the hard work and dedication of so many people,” said Fowler. “As people who care about our sense of place and where we come from, we must continue to think of ways we can keep families together and people living here. The people at this conference came up with so many great ideas so that we can continue to work for a prosperous future.”