As of the census of 2000, there are 2,868 people, 1,250 households, and 773 families residing in the town. The population density is 187.1/km² (484.8/mi²). There are 1,380 housing units at an average density of 90.0/km² (233.3/mi²). The racial makeup of the town is 87.62% White, 0.45% African American, 2.93% Native American, 1.05% Asian, 0.10% Pacific Islander, 6.03% from other races, and 1.81% from two or more races. 9.94% of the population are Hispanic or Latino of any race.
There are 1,250 households out of which 23.7% have children under the age of 18 living with them, 44.6% are married couples living together, 12.4% have a female householder with no husband present, and 38.1% are non-families. 31.3% of all households are made up of individuals and 19.7% have someone living alone who is 65 years of age or older. The average household size is 2.21 and the average family size is 2.72.
In the town the population is spread out with 19.7% under the age of 18, 7.9% from 18 to 24, 21.5% from 25 to 44, 24.2% from 45 to 64, and 26.7% who are 65 years of age or older. The median age is 46 years. For every 100 females there are 86.0 males. For every 100 females age 18 and over, there are 81.1 males.
The median income for a household in the town is $27,679, and the median income for a family is $35,495. Males have a median income of $36,979 versus $21,111 for females. The per capita income for the town is $16,851. 17.3% of the population and 12.8% of families are below the poverty line. Out of the total people living in poverty, 27.2% are under the age of 18 and 10.9% are 65 or older. Tourism constitutes the major industry.