FY24 DMO Plan and BudgetFY
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Discover Kalispell is a Destination Marketing and Destination Stewardship
organization. We serve to build a purpose-built tourism economy which
supports local businesses, and to participate in a multi -stakeholder approach
to maintain the cultural, environmental and economic integrity of Kalispell.
Table of Contents
WHO WE ARE
STRENGTHS
CHALLENGES
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DISCOVER KALISPELL'S STRATEGIC ROLE FOR FY24 6
AUDIENCE AND RESEARCH 11
GOALS, TACTICS & OBJECTIVES 16
OPERATING BUDGET 19
BED TAX
DISCOVER KALISPELL STRUCTURE AND TEAM 20
WHO WE ,ARE.
Kalispell is an unfiltered mountain town that remains true to itself. Kalispell is
a place that accepts you as you are and encourages intentional exploration, all
while soaking up fresh mountain air, playing on our glacial -fed waters, tasting
Montana's culinary offerings and rubbing elbows with the locals.
In Kalispell VentureBOLDLY is our mantra, it's a call that grounds us in and to
this beautiful corner of the world we call home. To truly understand what
venture boldly means in Kalispell, we invite you to learn more about its four -
pronged definition:
intention - Our roots and traditions run deep. We live with intention and
make bold moves with a firm understanding of who we are, where we come
from and how we'll grow.
Stewardship - As residents of Montana, we serve as stewards of this special
place. Whether you're here for a minute or a month, we ask you to be mindful
of the impact you have on this place, from public lands to local businesses.
Stronger Together - As with anything in life, we know we're better together.
Kalispell is a place for dreamers, makers, doers, creators and intrepid spirits to
live fully and boldly embrace adventures.
Discover Kalispell - FY24 DMO Plan
b I K t IN I -� " %*, _1___1_1.__
• Downtown Kalknpl' The new Parkline Trail, a two-mile linear trail running
through downtown completed spring 2022. This project has spurred
redevelopment in the area, adding to the goal of 18-hour vibrancy and walkability
throughout the heart of the city.
• Arte nnri rillirRirp• Conrad Mansion Museum, Hockaday Museum of Art, Northwest
Montana History Museum, Wachholz College Center, Glacier Symphony and
Chorale, art galleries, street art and juried arts & crafts shows and events.
• Wachholz College Centel located at the Flathead Valley Community College, the
performing arts center includes a 1,000-seat auditorium and lecture hall and
flexible event space. Since opening in November 2022, the center has featured a
star-studded line up of national -caliber performances and events.
• Glacier Rangre Riders_ Pioneer league baseball team playing at Glacier Bank Park
at Flathead Field in Kalispell.
• Iconic Natural Landmarks: 32 miles from the entrance to Glacier National Park,
10 miles to Flathead Lake, surrounded by 2 million acres of Flathead National
Forest.
• State Parks: Kalispell is surrounded by eleven state parks providing trails,
activities, interpretative visitor services, and water -based activities.
• ,fir Service, Kalispell's Glacier Park International Airport ranked #3 in
enplanements for airports in Montana in 2022. Passenger traffic totaled 420,000, a
1 % increase over 2021 which was the previous record year. Residents and visitors
have more options for business or leisure travel through increased seat capacity
year-round. GPIA is undergoing a $150 million terminal expansion to handle
increased traffic over the next 20 years. Glacier AERO, a non-profit represented by
Flathead Valley business and tourism industry, works to increase winter and year-
round flights through revenue guarantees and other partnerships with the airlines.
• Hpalthcarp Logan Health is a 577-bed health system that services 13 Montana
counties. Includes the nation's first rural air ambulance service, more than 4,300
physicians, nurses, health care professionals and support staff. Logan Health also
includes Montana Children's Medical Center, the region's first pediatric hospital.
• Workforce: Workforce Flathead, led by the Discover Kalispell Chamber convenes
students, job seekers, educators and employers to support the jobs of today and
grow jobs for the future including for the travel and hospitality sector. Additionally,
the Chamber -led Childcare Action Steering Council launched four childcare action
teams resulting in identifying 500+ childcare slots over the next two years.
• Infrastructure: Community coalitions around infrastructure progress including
the continued completion of the Kalispell bypass and the widening of West Reserve
to improve freight and passenger vehicle mobility.
Discover Kalispell - FY24 DMO Plan 2
CHALLENGESFOR KALISPELL & THE TRAVEL INDUSTRY
Hospitality Industry:
• With slowing ADR and rising operating costs, profitability in the hospitality sector
will slow in 2023 before advancing stronger in 2024 (STR, 2023 CoStar Group).
• As business and event/convention travel continues recovery the industry projects
to see occupancy growth. Strong leisure travel remains prevalent.
• During peak summer season 2022 570 short term rentals were active in 59901, a
3% increase over 2021. Flathead County entire place short term rental inventory
peaks at 2,667 rentals in 2022, a 17.9% increase. (Source: AirDNA)
Community:
• Glacier National Park has continued the vehicle reservation pilot system for
summer of 2023. Separate vehicle reservations are now required for the Going -
to -the -Sun Road, North Fork/Polebridge entrance, Many Glacier and Two
Medicine areas of the park, May 27 - September 11, 2023. In addition, the park is
undergoing several construction projects creating traffic delays and diversions
through the 2023 season.
• Kalispell has been identified as the fastest growing micropolitan area in America
by the U.S. Census Bureau on March 24, 2022. This level of growth adds to
already existing issues of workforce housing, traffic, and real estate prices.
Resident sentiment towards tourism is negatively impacted by the increased
number of new residents.
• Flathead County grew faster than any other of the larger Montana counties in
2022, adding 3,089 new residents, a 2.84% growth rate. causing continued
challenges for workforce housing particularly during the peak visitor season.
• Weather conditions have deviated from historical patterns which poses a
challenge when promoting outdoor recreation and outdoor events. The impact of
national media headlines around wildfires in GNP, as well as the wildfire smoke
from surrounding states impacts visitations to Kalispell and northwest Montana.
• Aquatic Invasive Species post a threat to the Flathead Basin waterways.
Introduction of non-native species disrupts the balance of native ecosystems
threatening the recreation viability in our area. Discover Kalispell will continue to
support FWP's communications of Clean, Drain and Dry and watercraft inspection
stations.
Discover Kalispell - FY24 DMO Plan 3
OPPORTUNITIESFOR DISCOVER KALISPELL
• Partnership with Kalispell Chamber: Discover Kalispell and the Discover
Kalispell Chamber function as one organization, each working to support the
local economy, community vitality, business and industry. We serve to Venture
Boldly while remaining Future Ready, assuring Kalispell is well -positioned for
long-term sustainable economic strength.
• Community engagement study: Discover Kalispell and Chamber facilitated a
community engagement study in November 2022. The input received through a
survey, two community meetings and several one-on-one in-depth conversations
provided our organization with valuable resident input around smart growth,
sense of place, and how the tourism industry can contribute positively to the
community. Those key findings will begin to be addressed during FY24.
• Ground transportatiow Community development priorities include improved
ground transportation to lessen traffic congestion particularly during the peak
season. Visitors need options to get from the airport to city centers, to lodging
and to Glacier National Park.
• Indoor snorts facility: Discover Kalispell is providing the funding for a financial
feasibility study to explore options to develop a tournament -quality facility to
serve as a community recreation asset and generate economic impact year-
round through sports tourism.
Discover Kalispell - FY24 DMO Plan
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STRATEGIC ROLE FOR FY24
A Strategy of Economic Vitality through Tourism Balanced with Community
Stewardship and Collaboration
While destination marketing is the traditional role of a convention and visitor
bureau and will continue to be important to support the economic vitality of
tourism businesses, Discover Kalispell recognizes the concerns around the growth
our community is experiencing. By integrating destination stewardship,
management and development initiatives Discover Kalispell will be part of the
solution playing an important role in helping our mountain community and
tourism driven economy thrive.
Discover Kalispell commissioned a community engagement study to get input on
the steady growth our area is experiencing. The community conversations
provided resident insights on what would make Kalispell a better community and
how tourism benefits the community. A few of the key recommendations
included:
• Creating a more vibrant downtown while preserving a sense of place.
• Be a community partner to focus on a win - creating a shared focus around
solving an immediate challenge.
• Support the outdoor recreation and restaurant industries - industry sectors
identified by residents as highly important to Kalispell's economy.
Many believe the community is now at a crossroads. Waves of new residents
bringing different mindsets, practices, and often more buying power have come
to the Flathead to take advantage of its natural beauty and way of life. They have
enriched the economy and brought new energy but are seen as the major reason
housing prices have been driven beyond the means of many locals. This
imbalance, in particular, has fueled resentment, and a longing for the town that
Kalispell used to be.
The community conversations provided input as to what is viewed as the
appropriate visitor to resident ratio. The survey results indicated that summer is
perceived as having too many visitors, but the other seasons have room to expand
visitations, especially fall and winter.
Percent of respondents that feel there are too many visitors during that season:
• Winter: 29.9%
• Spring:31.3%
• Summer:58.9%
• Fall: 28.6%
This data reinforces Discover Kalispell's strategy to promote winter travel and
direct funding to destination events and other initiatives that generate visitations
during fall and spring seasons. Discover Kalispell does not market for summer
travel, instead focuses on visitor management and Recreate Responsibly
communication strategies.
Discover Kalispell - FY24 DMO Plan 7
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Destination marketing is defined as promoting a town or city to increase the
number of visitors to support the local lodging and visitor economy. It is not a one -
size -fits -all approach. Promotions must be highly strategic and targeted to attract
high value travelers that can play a role in supporting our community. Marketing
includes designing campaigns that focus on visitor distribution - distributing
demand not only by season but also by traveler types and weekend/mid-week
demand. To uncover visitor demand not solely based on geographical markets but
by passions, niche activities and interests.
An effective and cohesive paid, earned and owned media strategy relies on
research to direct the media spend to create a strong ROL The campaigns are
implemented through Discover Kalispell's agencies of record and paid marketing
platforms.
Tactics:
• Destination promotion - paid media, website marketing, owned media (social
media, newsletters, brand content) and digital asset acquisition.
• Earned media - hosted influencer and press trips, media outreach,
destination reputation monitoring, FAM trips.
• Tourism sales - meetings, conventions, domestic tour groups, international
FIT, group incentives and sales calls.
• Travel & trade shows that reinforce target markets for leisure and group
travel segments.
• Equity, Inclusion and Diversity: create a welcoming environment for all, both
to the community and the outdoor recreation landscape.
Discover Kalispell - FY24 DMO Plan 8
DESTINATION STEWARDSHIP/MANAGEMENT
20% OF ORGANIZATIONS'S OPERATIONS
A destination stewardship and management approach balances the needs of the
community while supporting tourism jobs and businesses. It's a coalition of many
organizations and interests working together to preserve community culture while
stimulating economic viability outside of the peak season. And serves to find
solutions for peak -period tourism impacts including educating visitors, and
directing them to guided adventures, local businesses, unique experiences and
most importantly how to travel and recreate responsibly.
Tactics:
• VIC funding, visitor services and education.
• Fund and execute tourism and hospitality training.
• Be involved in efforts to improve ground and air transportation in the Flathead
Valley.
• Support arts and culture assets - public art, arts and performance arts events
and Kalispell's museums.
• Support the local outdoor recreation industry.
• Encourage visitors to Go With A Guide to assure safe and responsible
recreation and to support local guides and outfitters.
• Trail and water cleanup and other voluntourism opportunities.
• Help to facilitate improved infrastructure on trails and at trail heads.
• Support agri-tourism - agriculture businesses that offer experiences or
products.
• Support the Living In The Flathead Guide developed by the Flathead Lakers
which provides resources to educate new residents and visitors.
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Discover Kalispell - FY24 DMO Plan 9
DESTINATION DEVELOPMENT
?0% OF ORGANIZATIONS'S OPPRATIONS
Destination development strategies serve to enhance the visitor experience by
enriching recreation amenities, visitor assets, and supporting non-profit tourism
attractions. Development projects are also enjoyed by residents and support the
reasons why they choose to live in a destination.
Tactics:
• Grants - new and expanding events outside of peak season and community
tourism product development projects.
• Wayfinding, other signage and digital and printed maps to direct visitors to less
crowded experiences.
• Destination events hosted by Discover Kalispell.
• Fund study on market and needs and financial feasibility analysis for a
tournament and event destination indoor sports facility that also serves the
community sports programming needs.
• Advocate for downtown 18-hour vibrancy and the Parkline Trail.
• Be a community stakeholder to develop solutions for improved ground
transportation.
Discover Kalispell - FY24 DMO Plan
10
DEFINE OUR AUDIENCE
2022 non-resident visitors that stayed at least one night in Kalispell:
• Average group size - 2.38; average age 58
• Average length of stay - 5.9 nights (in Montana)
• Top U.S. geographic markets of origin: WA, MN, IL, UT, TX, OH, WY, CA, WI, SD
• 77% here for vacation, recreation, pleasure
• Top attractions/activities (near Kalispell): Glacier National Park, Flathead Lake
State Parks; special events, hiking, mountains/forests, rivers, lakes, camping.
(ITRR)
To attract travelers that will be of value to our destination, Discover Kalispell
invests in geolocation and spending data to determine who is here, when they
visit, if they disperse to lesser -known activities and amenities, how much do they
spend and where. That type of data enables us to target a high value visitor with
specific messaging and to retarget for return visits. We know that 70% of visitors
to Kalispell plan to return within 2 years (ITRR). But where will they go and what
will they do? We have the ability to influence those decisions based on what
would deliver the greatest positive impact to our destination.
Who we wish to attract - definition of a high -value visitor:
• Visitors that will stay more than one night in Kalispell.
• Visitors who are interested in fall, winter and spring travel.
• Visitors who are respectful of natural resources and strive to recreate
responsibly.
• Visitors who are interested in local restaurants, craft beverages and
shopping.
• Visitors who seek adventures outside of the heavily traffic activities and
recreation areas.
• Visitors who are seeking:
o Sporting events
o Destination events
o Accessible travel resources
• Business travelers
• Group travelers - meeting planners, domestic and international tour trade,
other group travel such as reunions, incentive travel, niche interest groups.
Discover Kalispell - FY24 DMO Plan
THE DM() STRATEGY
Prioritize tourism marketing initiatives to increase visitations in the fall, winter and
spring. Occupancy data, as well visitor to resident ratio sentiment by residents,
demonstrates there is capacity to increase visitations outside of the peak season.
• Average annual occupancy in Kalispell (2022): 57.3%
• Average occupancy October - May in Kalispell (2022): 47.6%
Occupancy and overall revenue declined for Kalispell's lodging industry during the
summer of 2022. This is attributed to the American traveler's concern with cost of
travel and economic uncertainty, and the complexity of Glacier National Park's
vehicle reservation system. It further clarifies the importance of destination
marketing to increase visitations in the shoulder and winter seasons, and that
Discover Kalispell should continue to promote product development and activities
outside of GNP during the warm season.
100.0
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Kalispell Hotel Occupancy
Jan Feb Mar Apr May Jun
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Jul Aug Sep
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Oct Nov Dec
(Smith Travel Research)
Discover Kalispell - FY24 DMO Plan
12
Who is the Kalispell visitor based on geographic markets and
spending:
DMA (NON-RES)
AVG SPEND
% OF TOTAL VISITORS
Seattle -Tacoma
$304
7.8%
Spokane
$324
9.6%
Phoenix
$353
4.4%
Los Angeles
$352
3.8%
Salt Lake City
$103
6.4%
Spending by category (% of total spend):
1. Food - 32.3%
2. Retail - 19.7%
3. Accommodations - 13.8%
4. Gas & service stations - 13.3%
5. Transportation - 10.5%
6. Outdoor Recreation - 1.5%
(Za rti co)
Credit card spending by non-resident visitors: $228.2 Million in
2022, a 7.5% increase YOY
Top CMAs per quarter (calendar) - Data support retargeting campaigns:
Q1: New York, Missoula, Salt Lake City, Seattle, Portland
Q2: Missoula, New York, Seattle, Salt Lake City, Phoenix
Q4: Missoula, Seattle, Salt Lake City, Bozeman, Los Angeles
(Visa Destination Insights)
Discover Kalispell - FY24 DMO Plan 13
TTRR - Montana Resident Attitudes Toward Tourism 2022
The ITRR resident attitude study demonstrated that residents want a balanced
approach towards tourism in the state. Residents recognize that while overall
benefits outweigh the negative, they feel the state is becoming overcrowded (57%)
and don't agree that if tourism were to increase that the overall quality of life for
Montana residents would improve.
Residents were asked if tourism increases in the Glacier Country region will the
overall quality of life for residents improve? 35% agreed - 37% disagreed.
Data from the ITRR study, Glacier Country's Destination Stewardship Plan, and
Discover Kalispell's Community Engagement Study, reinforces the importance of the
destination stewardship and development initiatives by Discover Kalispell, to create a
balanced, community -first tourism economy.
BBER The Future of Montana - What the New Wave of
In -Migration Means For the State
"While Flathead County generally follows statewide trends of stagnant growth,
industries like healthcare, construction, accommodations and food service are driving
economic growth and remain strong locally compared to other counties in the state."
Patrick Barkey, BBER, (Flathead Beacon)
Key points from report:
• As interest rates continue to rise and inflation remains high, BBER predicts no
statewide growth in 2023 followed by weak growth in 2024.
• The accommodation & food sector remains the most prominent industry for
Flathead County.
• Nonresident travel is 21 % of share income in basic industries, a leading driver of
economic activity in Flathead County.
Flathead County saw a sharp increase in net population migration from other
states in 2022.
Discover Kalispell - FY24 DMO Plan 14
Economy by Logan Hendrix
In Discover Kalispell's 2022 Community Engagement Study, outdoor recreation was
identified by residents as the second leading industry, after healthcare, based on
importance to Kalispell's economy. As such Discover Kalispell will identify ways to
expand our organization's support to this high valued economic sector that is so
closely aligned with tourism.
The Montana Department of Labor & Industry report on Montana's Outdoor Economy
states that outdoor recreation generates $2.5 billion of annual domestic product and
accounts for 4.4% of Montana's total GDP in 2021. Only Hawaii has a greater
concentration of outdoor recreation. About half of the state's $2.5 billion in GDP
comes from recreation activities, while the other half is generated through services
that support outdoor recreation (food, lodging, transportation, construction). Outdoor
recreation employs over 27,000 people in Montana, 5.4% of the workforce.
Top outdoor activities in Montana as percent of total GDP:
1. Boating/Fishing
2. RVi ng
3. Hunting
4. Equestrian
5. Snow Activities
Other outdoor recreation activities that increased in GDP from 2019 to
2021 include:
1. Canoeing/Kayaking 4. Guided tours/outfitted travel
2. Rafting/SUP 5. Motorcycling
3. Bicycling
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Discover Kalispell - FY24 DMO Plan 15
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GOALS, TACTICS and
OBJECTIVES
Goals
1. Increase visitation to meet the needs of the
Kalispell's visitor distribution goals - seasonality,
niche markets, diverse audiences.
2. Tourism sales initiatives to attract sports, events,
group travel, tour trade, and meetings and
convention segment bookings.
3. Public relations earned media strategy focused
on media that match Kalispell's marketing goals,
aligns with the Discover Kalispell brand and the
high -value target audience.
4. Encourage residents and visitors to travel and
recreate responsibly and respectfully. Align visitor
education programs with community values.
5. Support guides and outfitters and land manager
partners who provide services and education to
visitors fostering safe and responsible recreation.
6. Work with local stakeholders to develop and
enhance community projects that serve to
enhance the visitor and resident experience in
Kalispell.
7. Develop programs for community outreach and
tourism and hospitality training.
8. Be an active partner on initiatives for natural
resource sustainability.
Discover Kalispell - FY24 DMO Plan 17
Goal
Tactic
Primary Objective
Targeted advertising campaigns
Develop 1 targeted advertising
promoting fall, winter and spring travel,
campaign that delivers a CTR of
Increase visitation to meet the needs of
niche activity travel and inclusivity
0.75% or greater for each
the Kalispell's visitor distribution goals -
through paid media, website marketing,
category: hotel booking
seasonality, niche markets, diverse
owned media (social, newsletters) and
incentive, niche travel and
audiences,
di itaI asset acquisition,
responsible travel.
Group sales manager for meetings,
'Execute 20 in -market and out -
Develop sales plan to attract sports,
conventions and domestic and
of -market sales calls or client
events, group travel, tour trade, and
international tour groups. Sports tourism
events. Produce 3 videos to
meetings & convention segment
and destination event development and
use in group travel and tourism
bookings,
marketing.
sales promotions,
Host travel media to achieve earned
Public relations earned media strategy
media in targeted publications and
Host 2 travel media whose
focused on media that match Kalispell's
channels on topics such as winter travel,
audience aligns with DK's goals
marketing goals, aligns with the DK
fall travel, accessible travel, and educating
and definition of a high -value
brand and high -value target audience.
on responsible recreation.
target audience.
Develop opportunities for
Encourage residents and visitors to
Visitor education distributed through
newsletter signups and access
travel and recreate responsibly and
owned and paid media and collaboration
to visitor information at
respectfully. Align visitor education
with community stakeholders and land
community events and high
programs with community values.
managers.
traffic visitor areas.
Promote through paid and owned media
Support guides and outfitters and non-
campaigns highlighting guided and
Implement paid and earned
profits who provide services and
educational activities. Support programs
media campaigns to promote
education to visitors fostering safe and
led by local recreation/land manager
guided adventures. (local
responsible recreation.
groups.
guides and outfitters).
Cooperate with local stakeholders to
develop and enhance community
Event and tourism product development
Promote Discover Kalispell
projects that serve to enhance the
grant program which provides funding to
grant program through
visitor and resident experience in
new or expanding events and community
community outreach initiatives
Kalispell.
projects.
and newsletters.
Sponsor two guest services
training workshops. Be an
Guest services training for today's
active participant in
workforce addressngtoday's traveler.
community initiatives for 2
Develop programs for community
Dedicate staffing to community outreach
product development projects
outreach and tourism and hospitality
to identify solutions for peak season
that will benefit residents and
training.
tourism impacts.
off -set im act of tourism,
Partner with local organizations such as
Flathead Lakers, Flathead River Alliance,
Champion 2 projects led by
Flathead Trails Association and FWP to
local natural resource groups
Be an active partner on initiatives for
support conservation projects related to
through sponsorships,
natural resource sustainabilit .
visitor amenities and visitor impacts.
messy in , and volunteering.
Discover Kalispell - FY24 DMO Plan
STRUCTURE & TEAM
The FY24 DMO plan serves to direct the initiatives and spending for Discover
Kalispell and inform and educate the Kalispell Chamber and TBID board of directors,
community stakeholders, Tourism Advisory Council, City of Kalispell and the state
legislature.
Discover Kalispell, the Kalispell Convention & Visitor Bureau, is a division of the
Discover Kalispell Chamber. The Discover Kalispell Chamber has served as the official
tourism agency for the City of Kalispell since 1987. Discover Kalispell is funded by a
portion of lodging facility use tax (bed tax) generated in Kalispell, and the Kalispell
Tourism Business Improvement District (TBID). The Kalispell TBID district is currently
authorized to 2030. The two budgets work collaboratively to support Discover
Kalispell's DMO plan.
The Discover Kalispell Team.
President/CEO Discover Kalispell Chamber:
lorraine@kalispellchamber.com
Executive Director, Discover Kalispell:
Group Sales Manager:
, diane@discoverkalispell.com
, dawn@discoverkaIispelI.com
Marketing & Communications Coordinator: ,
marisa@discoverkalispell.com
Visitor Services Coordinator: , info@discoverkalispell.com
15 Depot Park, Kalispell, MT 59901 1 406-758-2811 1 www.discoverkalispell.com