SUSTAINABLE TOURISM
Finding a Balance Between Economy and Quality of Life
HUMBLE BEGINNINGS
People have been flocking to Truckee as a winter destination since the Central Pacific Railroad opened up access in 1868. Of all the ways we’ve encouraged people to visit Truckee over the years, my favorite tourist trap was Charles McGlashan’s Ice Palace. You may recognize McGlashan’s name – he was a prominent figure in Truckee’s history and founded the first town newspaper, The Truckee Republican. He also owned a mansion atop High Street, where the current Veteran’s Hall and Rocking Stone are located. In an effort to bring more tourists to Truckee, McGlashan built a 45-foot tall “ice cone” next to his mansion, made of chicken wire and wood. He covered it with water, which froze overnight, and strung up lights for tourists to see from the train. Through a series of mishaps, he eventually relocated it to the train yard, where the current fire station is located. This became Truckee’s Ice Palace – a 75-foot tall structure built from chicken wire and wood, then sprayed with water when the temperatures dropped down cool enough to freeze. Inside the Ice Palace was a 700-foot long ice rink illuminated by electric lights, and daredevils could access the top of the 75-foot tower to scream down the Palace in a toboggan. And you thought Headwall was gnarly…
It comes as no surprise then, that Truckee and tourism go hand in hand. In fact, while various iterations of Town Council have worked through the 2025 General Plan to make Truckee more appealing to higher wage jobs in the tech, health, and energy industries to diversify our economy, they also hedged their bets to take Truckee from a seasonal tourism model to a year-round vacation destination. Their intentions were well-focused – they realized that the tourism trade was a major part of our economy and local employees, often in the low and medium wage tourism trade, such as lodging/hospitality, retail, recreation, and restaurants, were struggling to pay their bills in the shoulder seasons.
We’ve experienced a healthy, steady influx of visitors for a number of years and as our town has grown in size, it’s also grown in seasonal tourism activities, including bike races, wellness festivals, marathons, and other events. Granted, most of these events take place at the ski resorts, but visitors often travel through Truckee, congregate in town, and spend their money on resources prior to, during, and after these events. They are involved within our community as much as they are within the events in and around our area. And since we’re a recreational destination, it only makes sense that we would work to capitalize and promote our town to reap the benefits of these events.
CONFLICT OF INTEREST
Here’s where I might lose you – as a local resident who makes less than the Average Median Income (see Affordable Housing), I have to hustle to pay my bills. And I’ve been fortunate enough to always pay them, but in order to hustle in this town, we sometimes have to take jobs that others in our community shake their head at or question our intentions, so here goes: I manage area vacation rentals for a national company.
I kind of fell into the gig after I left the Town of Truckee. I like working with my hands, I like solving problems, and I like meeting new people who I wouldn’t otherwise meet - and let me tell you – vacation rentals have a whole heap of all of it. I’ve worked for ski resorts, and in the restaurants, but STRs are a whole other beast. It’s like trying to tame Cerberus – and I feel like Hercules running around with a giant steak taped to my back. But the job is actually really enjoyable and I’ve taken it upon myself to use this opportunity to become a steward of our community and educate our guests about our area, our lifestyle, and why it’s so important that we preserve it.
FULL DISCLOSURE
Just so we’re perfectly clear – these statements are mine and mine alone; they do not reflect the opinions of my employer, and have not been written, pre-approved, vetted, or in any way altered from my own opinions and views. I’m speaking to you as one Truckee citizen to another, about the issues we’re facing and offering my thoughts and ideas on how we can best come to a resolution that works for all of us. Given that I work in the industry, there is a very clear conflict of interest, so again – these are my opinions; should I be fortunate enough to serve with the Town Council, I would recuse myself from these discussions and not be involved in making any decisions. Should any of my ideas or views be voiced or championed by the community, or by any other acting members of Town Council with no clear conflict of interest, it would ultimately be at the discretion of the Council to determine if they would pursue those ventures.
THE NEED FOR REFORM
Given the summer I’ve had in the industry, and the summer we’ve seen throughout Truckee, it’s apparent that we need some reform when it comes to over-tourism and the impact our visitors make on our small, mountain community. Our town of 16,000 routinely triples during heavy tourism. We do not have a clear figure that supports this notion, though it has been articulated by previous Truckee Police Chiefs when referencing calls for service and their ability to respond. It’s also felt anecdotally by anyone trying to get home from after a powder day. And this summer, well, you were in for a wallop. Typically slower days, such as midweek were just as busy as weekends, and weekends, well, you were better off walking to Tahoe City than trying to drive. COVID hit our area with a 1-2 punch and the effects of 150+% occupancy were felt far and wide in and around our town.
Here's a few things that Town Council is trying out to bring some reform: STR Regulations and Measure K.
SHORT-TERM RENTAL (STR) REGULATIONS
Truckee is considering invoking some Short-Term Rental Regulations (STR), using Placer County as the model. Placer County has clear rules about over-occupancy, parking, noise, trash, exterior lighting, outside fires, fire codes, and code compliance. They provide a hotline for complaints and require a local contact person to resolve issues if and when they occur. Tahoe Donner has already enacted these rules in their covenants, and local operators doing business in Tahoe Donner were expected to adopt the policies in order to continue operating in the neighborhood. My company has been in full compliance with both Placer County and Tahoe Donner. I don’t expect any real issues with STR regulations from the Town of Truckee.
What it does:
It provides clear operating expectations for homeowners, guests, and property managers.
It provides an enforcement lever, through the use of fines and potential STR restrictions, to encourage compliance.
It provides operators more guidance when resolving guest issues and neighborhood disputes.
It removes the burden on citizens to police their neighborhoods or to contact indifferent homeowners for conflict resolution.
It reduces the likelihood of absent, rogue operators from the short-term rental market by requiring them to have a local contact who can respond to issues in a reasonable time-frame, day or night (usually 30 minutes).
It provides a clear escalation path for homeowners or properties that continue to violate the short-term rental regulations, including revocation of the STR license.
It helps reduce over-occupancy in rentals, reduces the likelihood of “party homes” in the neighborhood, and helps restore the peace and tranquility of the neighborhood.
I support a Short-Term Rental Regulation plan set forth by the Town Council, given that the rules and regulations can be met with reasonable competence from owners and operators.
MEASURE K
Measure K will be up for vote in November. This is a proposed 2% increase to the Transient Occupancy Tax (TOT) assessed directly to guests who stay overnight in Truckee for up to 30 days, per stay, in a calendar year. Currently, the tax rate is 10% and the increase of 2% will generate an additional $700,000 per year. The TOT is the third largest source ($3,400,000) of yearly revenue for the Town of Truckee, behind Property Taxes ($12,384,300) and Sales & Use Tax ($4,424,000). Passing Measure K will increase TOT to about $4.1 million in annual tax revenue for the Town of Truckee. Funds are dispersed directly into the General Fund and are not earmarked for any specific purpose.
How this compares to other areas:
Lancaster, CA – 7% (Lowest TOT in the nation.)
Eastern Placer County – 10%
South Lake Tahoe – 12%
National Average – 12%
Reno – 13 or 13.5% (Rate is dependent on location.)
Houston, TX – 16%
Atlanta, GA – 16%
St. Louis, MO – 18% (Highest TOT in the nation.)
o California law requires all tax increases to be approved by voters; local governments cannot raise taxes without voter approval.
o California and Alaska are the only states that do not charge a state hotel tax. TOT is assessed by local governments.
o Nevada charges a 6.5% state hotel tax.
For Example:
If a guest books a $100 hotel room on the strip in Reno, they have to pay $6.50 for the state hotel tax (6.5%), $13.50 in transient occupancy tax (13.5%) to the City of Reno, and a $3 per room, per night Reno-Sparks Convention & Visitors Authority (RSCVA) Hotel Surcharge, in addition to 8.265% NV sales tax, and any other taxes and fees.
For that same $100 hotel room in Truckee, guests would pay $12.00 in transient occupancy tax (12%) to the Town of Truckee in addition to 8.25% CA sales tax, and any other taxes and fees.
I generally support Measure K and will vote for it to be passed, but I am concerned about how the funds will be dispersed; I would like to see a percentage of those funds earmarked for enforcement of STR regulations (trash & litter mitigation, increased calls for service for public safety, etc.) and to provide increased bus routes to bring public transit into the local neighborhoods (see Reliable Infrastructure).
BRINGING BACK THE SHOULDER SEASON
I do not believe eliminating tourism in our area is a reasonable solution given the Town’s vibrant history and economy, but I do feel that Town Council should explore alternatives to help better regulate peak tourism back into Summers and Winters which provide the best possible chance for revenue generation. I feel that Spring and Fall should be reserved for the local population to enjoy our area, at a reduced occupancy and that is why I support bringing back the "Shoulder Season".
I believe that the locals are accommodating tourism at a greater level during peak season and we should be afforded the opportunities to enjoy our community without having to compete with tourists for resources like parking, trail access, beach access, and mid-week spring ski lift access. I realize that we can’t completely restrict tourism during the shoulders, and it would be fiscally irresponsible to do so, especially for those who rely upon tourism as their main source of income. However, I do feel that these times provide the best opportunity for infrastructure preparations, repair, and winterization efforts. We should be limiting or discouraging weekend events meant to solely drive tourism into our town to provide some respite for our residents.
Given that STR operators are also paying a 2% assessment on their taxable rent to the Truckee Tourism Business Improvement District (TTBID), and the TTBID is used to leverage and market tourism for area businesses, solutions should be sourced with the Truckee Donner Chamber of Commerce to determine how to best re-focus our efforts for tourism.
PROPOSED STRATEGIES FOR REGULATING TOURISM
Local Stickers
Provide local residents a pathway for a low-cost sticker ($25/year), to be affixed on the inside of their windshield, which provides them priority access to Truckee resources such as downtown parking, trailheads, beach access, and other amenities.
This could eliminate the employee permit structure for using the downtown parking district.
This could also provide preferred access to neighborhoods during temporary road closures.
Residency could be determined using a current utility bill or other document that shows proof of physical residency. Roommates could pool utility bills to prove residency, or other alternatives could be explored to ensure residents are accurately represented. Adults with minor children of driving age could be issued multiple stickers for their household.
Provide enforcement of users who violate these designated spaces and do not honor these parking areas, such as tickets, towing, etc.
Explore Options for Tourist User Fees
User fees include day use, fee drop boxes, entrance fees, tourism surcharges for lodging assessed during peak seasons (summer or winter), parking fees, licenses/permits, and overnight use.
Local stickers could be used to over-ride parking fees and void parking tickets if not using designated spots.
Fees would help off-set costs of maintaining and managing the area for the impact of tourism.
Explore options of limiting access based on occupancy to help retain the experience of the activity without over-crowding.
Since many resources in our town are managed by other agencies, this would likely require a joint or interdepartmental cooperative agreement.
Establish Dedicated Staffing for Sustainability
Town Council could solicit consultation, or enact a new position the Town structure to explore other ways to transition our town to a sustainable tourism model.
This position would also have an enforcement arm to help mitigate litter, graffiti, and degradation of our open spaces throughout town to help retain the character of our town.
They would also be responsible for community engagement, to collect data and comments, to help focus community voices to facilitate the direction requested from our residents.
I would like to explore as many options as are feasible to help maintain the character and charm of Truckee, while still keeping our economy thriving, so if you have ideas that you’d like to contribute, I encourage you to share your thoughts!
