Fredericksburg's friends and family
Hill Country town juggles tourism and cost of living for residents
Fredericksburg runs on small businesses that appeal to tourists. But where do workers go when the day ends?
Long ago, it was one of the first German settlements in Texas. In 1846, the Society for the Protection of German Immigrants founded the city known today as Fredericksburg. Fast-forward nearly 200 years, and millions of visitors have trekked from around the world to get a taste of the city's food and wine and enjoy its unique architecture. But tourism is outpacing local growth.
Jim Mikula leads the Fredericksburg Chamber of Commerce and says a defining trait of the city's establishment was the Germans' affinity for entrepreneurship.
"They knew they could have business here in the United States when they came over from Germany," Mikula said. "That spirit is still here: 98.5 percent of our businesses are small or micro-businesses."
Mikula said the city has an ordinance that helps keep it so charming. Mostly local businesses have remained on Main Street, many in buildings that are over 100 years old.
Fredericksburg City Manager Clinton Bailey said the town has changed a lot in the last decade, with more tourists discovering what he calls a "crown jewel."
"We're seeing more visitors coming to Fredericksburg, and we're seeing a younger crowd," Bailey said. "I've seen a transition away from more of the person coming to Fredericksburg to shop for antiques and shop in general, to people coming here for the experience they get."
So far this year, more than 740,000 visitors have come to Gillespie County, according to the Fredericksburg Convention and Visitor Bureau. Last year, tourism generated $175 million in visitor spending, creating 1,200 local jobs.
Mikula estimates there are more than 1 million visitors that come to this area — and the high-end hospitality industry has taken notice.
"These companies are seeing Fredericksburg as a place to put those luxury hotels, to attract in the travelers from Dallas and Houston, San Antonio and Austin," Mikula said.
Waldorf Astoria Hotels & Resorts will debut in Texas by opening a luxury resort in the Hill Country, which is expected to open in 2027. Mikula said the Kimpton Hotel has also started groundwork on the west end of town.
But Fredericksburg's boom times have raised concerns from some people who live there.
Lindy Segall moved from Austin to buy a property in Fredericksburg in 2014. He said he worries about the quality of life for the residents, citing a lack of affordable housing.
"Most of the people who clean these B&Bs and serve you at the table, they're commuting from at least 30 miles away, 60 miles round-trip," Segall said. "They can't afford to live here, and we have yet to solve that problem."
The Fredericksburg Area Association of Realtors reports the median price for a home this year is $462,000. So far, Bailey said, while the city's tourist volume has changed, its population has not.
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Brass Peacock doesn't offer reservations, but guests must dress in upscale cocktail attire.Photo courtesy of Texas Travel Awards