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Tourism Committee Considers Whether It Has a FutureTuesday, January 25, 2011 Members of the Williamsburg Area Destination Marketing Committee met Monday and began a frank discussion about the future of the group and its marketing component, with opinions ranging from terminating the group to increasing the tax that funds it. New WADMC Chairman and James City County Supervisor Jim Kennedy decided to start the discussion, he said, because WADMC was originally intended to be a short-term group and supposed to disband in January 2008. Kennedy believes the group wasn’t designed or structured for long-term success.WADMC was created by a 2004 state law (at the request of local hoteliers) that set up a $2 per room, per night tourism tax on overnight hotel stays in the Historic Triangle. The aim was to increase overnight visits to the area - and raise tourism promotion funds - for a limited time though the Jamestown 2007 celebration. When the sunset clause was removed by the General Assembly, the committee became permanent, but kept its original by-laws and structure. Kennedy’s aim was to start a dialog about members’ thoughts on the future of the group “so we can see where we want to go” with it, he said. One of the main themes of discussion Monday centered on the marketing arm for the group, the Marketing Resource Task Force (MRTF). This group is made up of seven marketing professionals from the various large tourism drivers in the Triangle as well as representatives from the three local governments. MRTF is tasked with coming up with and executing the annual marketing plan for WADMC (with oversight from WADMC members), and they meet on a monthly – and sometimes weekly – basis to complete their work. Like the WADMC members, MRTF members are volunteers, and Kennedy pointed out that their time commitment “might be unrealistic” given the fact that they’re now held in the positions indefinitely. Kennedy asked whether it was worth discussing hiring an outside agency to take some – or all – the burden off MRTF, but WADMC member and Vice President of Marketing for Busch Gardens Dan Dipiazzo pointed out that this would drain WADMC’s already dwindling budget. Dipiazzo did agree, though, that “a volunteer committee managing something long term… doesn’t really make sense.” Many members agreed, with former WADMC Chairman and Executive Director for the Jamestown-Yorktown Foundation Phil Emerson saying that demands on MRTF have grown so much over the years that they’ve become unrealistic. MRTF head and Executive Vice President and General Manager of Kingsmill Resort Robin Carson said she is currently in the process of talking with all the MRTF members to get their thoughts on the future, but said she felt a lot of what the group does can be accomplished by an advertising agency. Carson pointed out that though economic times have been difficult and contribution from outside agencies to WADMC have been reduced, the overall goal should be to help hotels collect more money so the marketing group gets more money to advertise the destination. Kennedy asked the group’s thoughts on trying to lobby to change the $2 rate to a percentage-based fee instead. Member and representative for the Williamsburg Hotel Motel Association Doug Pons argued that any tax is an impediment to business, and said the Hotel Motel Association likely wouldn’t support the idea. He suggested that WADMC “take a look at an admission tax [on theme parks and the like] to take the burden off hotels.” WHMA President Chris Canavos was in the audience, and WADMC members allowed him to speak briefly. He agreed with Pons that a change or increase in the tax wouldn’t be well received. “Hotels are suffering,” he said. “Until we figure out what’s wrong with this town, don’t look at our industry any more. Look at other industries.” Dipiazzo said he didn’t think hotel visitors considered taxes when looking to book rooms. Greater Williamsbrug Chamber and Torurism Alliance President and CEO Dick Schreiber, who has lobbied to change the tax to a percentage-based fee before, argued the number wasn’t taking into consideration inflation. He also pointed out that a percentage didn’t necessarily mean a guest would pay more than $2 per night – in a room that costs less than $100, a tax of two percent would be less than $2. The new Executive Director for the WHMA Priscilla Caldwell suggested the group look at other areas with a marketing group like WADMC and to see what their models were to help make a decision for WADMC’s future, which met with some general agreement on the board. Pons noted a recent tourism study done by the College of William and Mary's Ron Hess, which touched on a marketing group in Asheville, North Carolina, was much like WADMC except made up of significantly more hoteliers. York County Board of Supervisors member Walt Zaremba wondered whether, since timeshares have been significantly increasing their contributions to the $2 tax due to selling rooms by the night like a hotel, they should also have a seat at WADMC, which seemed to meet with some agreement from the rest of the committee. Carson pointed out that Triangle timeshares spend a significant amount of money marketing the area, as well. “If we’re talking about balanced representation, why not put more hoteliers at the table?” Pons suggested. He also suggested adding back the sunset clause to end WADMC in two years. Monday’s meeting was just a first chance for members to share their thoughts on WADMC’s future, Kennedy told the committee. The group “was just not designed for long-term success” because it was supposed to be a short-term plan, he said, and he hopes some future discussion and possible changes could help. WADMC can make some changes to its own structure, but the basic members and goals as well as the amount per room night were set by state legislation so can’t change without decision by the General Assembly. MRTF will meet in February and report back to WADMC at their March meeting. |
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Comments
Frankly, I don't even know if this sentiment is widespread among the hotel community. The only names I ever see complaining about this are Pons and Canavos. The manager of one of Williamsburg's biggest hotels, Kingsmill, was reported to be at this meeting, but seemingly didn't have the same issues as these other two. (Or at least it wasn't reported that way.) Where are the owners of the area's major lodgings when all these discussions are going on? (Maybe running their hotels and not whining?)
Here's my suggestion: Put an end to this WADMC group and the tax. If hoteliers want to manage this fund by themselves for themselves, let them dig into their own pockets, not their guest's, or let them add $2 to the price of every hotel room to fund their program. Then they can do whatever they want without interference from CW, Busch, Jamestown and whoever else they think is holding down tourism. In the meantime I'm quite sure those organizations will carry on just fine without this distraction.
I can make a strong argument why everyone should support tourism funding and why no one should support tourism funding with tax dollars.
Can/will anyone make a strong argument why hotels and restaurants should be the only business's required by law to pay taxes to support tourism promotion without legitimate representation?
Keep in mind the hotel industry only has 1 vote at WADMC, and there is not 1 focus group, task force, or sub-committee at any of the local municipal levels for hoteliers and restaurants to help direct how tourism promotion dollars are spent.
It would be one thing if hotels and restaurants were in charge of how the tourism promotion dollars were spent. Then we would have no one to point the finger at but ourselves.
But to require that hotels and restaurants exclusively be taxed to fund tourism promotion without equitable representation is wrong.
So if we have to pay the taxes, let us have a bigger say in how those taxes are spent. If we don't get a bigger say, then don't make us pay the taxes.
You will hurt the economy with this plan!
The suggestion of a changing the $2 tax to a % is obsurd and if that happens the hoteliers need to get together and demand that the tourist attractions as well as restaurants add their %. What is the old saying? 'What is good for the goose is good for the gander"...Lets get some hoteliers on this committee!
If all business's do not support tourism with taxes then we should not expect one industry to shoulder the burden.
If I had my way we would stop collecting the $2 tax today and look for another way to fund tourism.