Sedona is a beautiful area that would definitely attract people. For whatever reason, a lot of foreigners want to rent cars and drive the historic Route 66, which would run them right through there.
Do you know what the public transportation situation is as far as getting travelers in and out and connect them to the attractions? I see that there is a Greyhound bus station and an Amtrak station in Flagstaff, but not in Sedona. There are probably local buses that would connect the two, but I didn't see them in an initial google search. I did find that Sedona has a free bus that connects tourists to popular attractions around the city. (naipta.az.gov/RoadRunner/index.htm) According to sedona.net there is also a daily shuttle to Phoenix. There is an airport too, claiming to be "the premier Southwest resort destination airport" and "America's most scenic airport." (according to sedonaairport.org)
Are you thinking that Sedona might be a good spot for you to finally open your own hostel, or just simply pointing out a location with potential?