Agenda - 12-18-1990 - Laserfiche WebLink

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a 7 1NTR [) TI N TfTG R N E VI IT IZ DEVE I'Ai1rNTA fiOl71 "I'�' Why Market Orange County to Visitors? A frequently asked question is "Why should we spend money to attract visitors we already have", • Area visitors' facilities and services are underutilized. City -wide hotel occuparlcv in C11111,l I -lilt last year was around 6317,. County -wide the occupancy was 53 %. • Visitors are unfamiliar with our area and need information. • Visitors often become repeat visitors if their experience in our communities is positive 1'c,,1)1e 111,e to go where they are made to feel welcome. • Conference and event planners need help coordinating their visits. Planners appreciate the availability of information and the convenience of a local community's efforts to attract them. They know full well the economic impact of their event on the local economy and they have collie t,, expect professional and efficient response to their queries. Organizations planning conferences ;mQi events are no different than people shopping - they want information, value, convenience Llnd service. The community that can provide these gets their business. • Other communities recognize the importance of actively seeking visitor groups and provide a central point of contact to disseminate information and facilitate the planning of events. Our area and economy is often in direct competition with these other communities. • While we have premiere educational, research and medical institutions that are a natural magnet for conferences and visitors, we must remember that other communities have them too. There is often competition for conferences and events. Central dissemination of information and efficient facilitation and coordination of needs, makes a difference when trying to attract groups. Is It Worth the Trouble and Expense? The answer is an emphatic yes. Would Raleigh, Durham, Charlotte and a host of other cities across the country be operating Visitor Services Authorities were it not deemed advantageous? Each dollar spent by a visitor in our communities has a ripple effect throughout the local economy. Primary recipients of visitors' expenditures must themselves pay taxes, support payrolls and buy goods and services for their businesses. To the extent that this "outside" money is churned through the local economy, it provides more sales tax revenues to provide for government services, thereby lessening the pressure to increase property taxes. Doesn't this Idea Benefit just a Few? This is not a plan to spend tax dollars just to help local hotels. While hotels are obvious recipients of increased visitor traffic, many other businesses also benefit - restaurants, gas stations, retail shops and the host of businesses that supply their needs for goods and services. In Chapel Hill, hotels are subject to a 3% occupancy tax on room revenues, so increases in room business directly impacts on local govern- ments' revenues. Last year, Chapel Hill hotels sold close to 200,000 room nights, generating approxi- mately $250,000 in occupancy tax. For each 1% increase in hotel occupancy city -wide, an additional $4,730 is raised in occupancy tax revenues. Total hotel sales topped $I5,000,000, making the lodging industry one of the largest in the community.