Agenda - 02-19-2008-6d - Laserfiche WebLink

Browse Search

WITH CARRBORO & HILLSBOROUGH The Feeling Never Leaves You January 7, 2008 To: Orange County Board of Commissioners: Carey, Jacobs, Nelson, Gordon and Foushee CC: Laura Blackmon, County Manager Fr: Chapel Hill/Orange County Visitors Bureau Board of Directors Re: Orange County 1% Occupancy Tax Please accept this letter and packet of support as a request of the Orange County Board of Commissioners to increase the county's 2% hotel occupancy tax by 1 %. This request is rooted in Senate Bill 622, Chapter 392, of the 1991 Session laws, which makes provisions for the Orange County Board of Commissioners, by resolution, to levy a room occupancy tax of up to three percent (3%) on the gross receipts derived from the rental of any room, lodging or similar accommodation in the county. The Chapel Hill/Orange County Visitors Bureau was created in 1991 by the County Commissioners with a 1 % county occupancy tax. In the 1996/97 fiscal year, at the request of the board and the local industry, the tax was increased to 2% where it currently remains. It is the request of the Visitors Bureau board of directors, and industry partners to raise the tax to its full 3% to meet the demands of increased competition for tourism and a desire to service the extraordinary interest in Orange County, among travelers, meeting planners and sports event organizers. The'additional revenues would equal approximately $250,000 based on past performance, bringing the Bureau's total budget to $900,000. The additional funds will be allocated to tourism marketing. The I% increase in occupancy tax would result in a 6% total occupancy tax on Orange County guests, which is on par with most North Carolina counties and is not a deterrent where decision making among hotel guests are concerned. Orange County hoteliers have made inquiries with guests. The increase in budget would place the Visitors Bureau overall budget at $900,000 and although it to implement more tourism campaigns in an ever increasing competitive industry. As a side note, Durham's total budget is $3.5 million; Raleigh is $4.65 million; Pinehurst $1.5 million; Greensboro is $2.3 million. The Orange County Visitors Bureau is meeting the demands of the area's hospitality industry; has contributed to double digit growth of tourism in our county the past five years and has shown vigor for ideas, increased sales and an efforts to strengthen our economy through tourism, including conferences, group tours, extended stays among loyal visitors and an increase in overall new visitation. Thank you for your consideration. 501 West Franklin Street, Chapel Hill, NC 27516 info®chocv" Pw4&,A4-s '3C)Cc 919-968-2060 visitchapelhill.org