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Tourism budget finished
New $2 occupancy tax is expected to bring in $480,000
Published Saturday, August 23, 2008
NATCHEZ — The marketing advisory committee has completed its task of budgeting the $2 occupancy tax funds.
In its fifth draft, the budget varies from the original copy the Natchez Convention and Visitors Bureau board gave the committee as a guideline several weeks ago.
The main difference is the CVB board budgeted based on $600,000.
The marketing committee only budgeted with $480,000.
The number dropped greatly because the CVB board was counting rooms that Natchez doesn’t even have and are yet to be built — Grand Soleil and Best Western.
In the absence of those rooms, a more accurate budget can be written.
President of the CVB board Royal Hill said the proposed budget looks good.
“It looks pretty solid,” he said. “The committee did a bang up job in putting together the facts and figures and it seems tourism is headed in one unified direction as far as marketing goes.”
In the budget, almost an equal amount money is spent on leisure tourism as there is on bringing in conventions.
The previous CVB budget had much more going toward leisure tourism — tourists who are not a part of an organized convention.
The new budget allocates $206,400 toward leisure and $193,600 toward conventions.
Janice Guido, committee member and liaison to the CVB board, said this is because conventions have much more room to grow than leisure tourism.
“The convention business in this city is probably, in my opinion, might be at maybe 50 percent of (its) potential,” she said.
So the committee focused on doing what it can to jumpstart the area with the most potential, she said.
“It’s almost like doing a huge re-launch of the convention center in a very professional, strategic manner,” she said.
Leisure tourism certainly isn’t lacking dollars, though.
A substantial amount of money allocated in the leisure segment of the budget goes toward revamping the CVB’s Web site.
The committee allocated $22,400 to the Web site.
Guido said it’s important to have a well-functioning Web site and that, in and of itself, can attract leisure tourists.
“The Web site is so key to the leisure market in particular,” she said. “Most of the leisure travelers today are going online.”
The new budget is dependent on a new room count that was provided by Director of Tourism Connie Taunton.
She contacted each hotel and bed and breakfast in the area to get the most accurate tally possible.
She came up with 900 hotel rooms, 89 luxury bed and breakfast rooms and 102 bed and breakfast rooms, a total of 1,019.
They are anticipating the addition of 188 more rooms with the addition of the two new hotels, but until then, will not count them.
Taunton said she feels better having a more realistic number to work with.
“I’m feeling more comfortable now that we have these true numbers of rooms that are now collecting,” she said.
The budget will now be checked off by the CVB board and will be presented by Hill and Guido to the board of aldermen Tuesday.
Comments
Posted by NatchezEnema (anonymous) on August 22, 2008 at 11:27 p.m. (Suggest removal)
When they wanted the law passed it was what, 600,000? Now it's 480,000. Voodoo numbers if you ask me. They are already starting to spin the numbers. They knew when they were passing the law these extra rooms were not and would not be open for a while. WHEN DOES IT GO INTO EFFECT? BALOON RACE WEEKEND? So they can blow the numbers up. I want to know if the people of Natchez will be able to go online and look at the numbers ourselves. I think the Democrat could have gotten more info on this hot topic other than reporting just what they say. These people need to be under the most powerful microscope possible. They have dragged their feet enough. I want to know who what when where and why.
Posted by NatchezEnema (anonymous) on August 22, 2008 at 11:28 p.m. (Suggest removal)
This is going to be a good ole hot topic I hope.
Posted by Riffian1964 (anonymous) on August 22, 2008 at 11:35 p.m. (Suggest removal)
Why is the CVB just now getting "true numbers of rooms?" Isn't that their job? Smoke and mirrors are alive and well in Natchez tourism.
Posted by OldGrandDad (anonymous) on August 22, 2008 at 11:49 p.m. (Suggest removal)
My thanks to the committee for raising the percentage for leisure tourism. Good move.
Posted by gemccull (Gary McCullars) on August 23, 2008 at 2:24 a.m. (Suggest removal)
Let's see, if the budget is $480,000 and $206,400 has been allocated toward leisure and $193,600 has been allocated toward conventions, what about the other $80,000?
Posted by destiny (anonymous) on August 23, 2008 at 3:42 a.m. (Suggest removal)
good question gemc, but we probably will never know.
Posted by fire39212 (anonymous) on August 23, 2008 at 7:25 a.m. (Suggest removal)
Well gemccull you know the saying the rich get richer the poor never changes......So go figure...80,000.00 is a good start i would say...Just imagine what will be to come...
Posted by gemccull (Gary McCullars) on August 23, 2008 at 8:25 a.m. (Suggest removal)
The occupancy rate would be the biggest guess or fudge factor. I seems to me that the $480,000 is based on 65% occupancy. Then you add 284 more rooms and the occupancy rate could be as low as 50%.
I just wonder what the break-even occupancy rate is for each establishment?
Posted by niderbip (anonymous) on August 23, 2008 at 9:03 a.m. (Suggest removal)
who would budget dollars based on hotel rooms yet to be built?
the very people you decided to let handle tax dollars when you voted to pass yet another tax.
brilliant.
Posted by gemccull (Gary McCullars) on August 23, 2008 at 9:12 a.m. (Suggest removal)
The Democrat could publish the budget. Surely there is more to the budget than the broad categories of leisure and conventions.
Posted by watcher (anonymous) on August 23, 2008 at 9:47 a.m. (Suggest removal)
I think the "missing" $80,000 could be the reimbursement for the Comp Rooms in the Conv Cntr Hotel ???????? mentioned in the earlier article
Posted by gemccull (Gary McCullars) on August 23, 2008 at 10:24 a.m. (Suggest removal)
Watcher, you may be right but that would be about two (2) comp rooms for every day of the year.
The hotel needs a handout for comp rooms when it is managing the convention center for $250,000 a year and has a distinct advantage over the other establishments for events at the convention center. It's their business decision to award comp rooms and that decision should not be reimbursed from the "bed tax".
Posted by EnKiKur (anonymous) on August 23, 2008 at 10:40 a.m. (Suggest removal)
It appears the NCVB has forgotten that when they started all this they said they already had 120,000 or so for advertising- the amount Warren Reuther called laughable. The way the last two article reads is that the only money for marketing is going to come from the bed tax. What the heck happened to that other 120,000? I believe that money was coming from the second hamburger tax. In fact, I know it was, and I know that before they were including that amount in the 600,000. It appears the NCVB is counting on people not to remember what they read in the paper.
Posted by gemccull (Gary McCullars) on August 23, 2008 at 10:48 a.m. (Suggest removal)
Good point, EnKiKur!
It definitely looks like there is a lack of credibility.
Posted by steve_o (anonymous) on August 23, 2008 at 11:33 a.m. (Suggest removal)
Wow!
There's $80k and $120k "found $$$" before noon!
Posted by NatchezEnema (anonymous) on August 22, 2008 at 11:28 p.m. (Suggest removal)
"This is going to be a good ole hot topic I hope."
You may be right!!
Posted by happybunny (anonymous) on August 23, 2008 at 11:43 a.m. (Suggest removal)
I can't believe you people are griping about this...it is not your money! It is a tax to visitors solely used to attract people to Natchez. Who cares if they overshot their number...it's gravy. Money that we did not have in the past. If it were a tax to the residents, I could see the outrage, but YOU ARE NOT PAYING IT!!!! Be happy that the CVB had the foresight to suggest such a tax and the taxpayers had the sense to vote it in.
Posted by gemccull (Gary McCullars) on August 23, 2008 at 11:58 a.m. (Suggest removal)
I am not against the "bed tax"!
However, I do want some accountability. Remember, the "hamburger tax" and the 3% on hotel rooms was diverted from its intended use.
It's now about credibility!
Posted by EnKiKur (anonymous) on August 23, 2008 at 12:01 p.m. (Suggest removal)
Actually they didn't overshoot their number bunny. If you take 65% of available hotel rooms at 2.00 a night that comes to 465,000 a year. Add 120,000 to that from Hamburger Tax 2 and you come up with almost the 600,000 the NCVB and Tipton were originally projecting. I'm just asking what happened to the other 120,000 since the NCVB is now saying they are short that amount.
Posted by Bobaloo (anonymous) on August 23, 2008 at 12:04 p.m. (Suggest removal)
if you wanna know something, go do the research and file the appropriate paperwork.
Posted by texasranger (anonymous) on August 23, 2008 at 12:10 p.m. (Suggest removal)
Never spend money you don,t have. Credit cards are a good example. Never build more hotels than you can fill.
Just a thought. Hammer away.
Posted by natchez500 (anonymous) on August 23, 2008 at 4:30 p.m. (Suggest removal)
butch brown will get the other $80,000 to start his park or they will pay a consultant
Posted by colescreek (anonymous) on August 23, 2008 at 8:14 p.m. (Suggest removal)
I have an idea! Lets all move to Montana!
Posted by texasranger (anonymous) on August 24, 2008 at 12:41 a.m. (Suggest removal)
I don,t ever see but a handful of cars in the hotels parking lots anyway,what,s the big ruckus?
Posted by whataboutit (anonymous) on August 25, 2008 at 9:01 a.m. (Suggest removal)
From the number of new employees at the Convention and Visitors Bureau, I would say that is a pretty good guess as to where extra money will be going. Really strange on just how many new employees they just hired.
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