Room Tax Builds Communities. VisitNC 365 Conference March 20, 2017
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1 Room Tax Builds Communities VisitNC 365 Conference March 20, 2017
2 Occupancy Tax Occupancy tax creates a funding stream to market the Asheville area. BCTDA Buncombe County Tourism Development Authority oversees the occupancy revenue ensuring maximum return on investment and maintaining a sustainable economy. Asheville Convention & Visitors Bureau The BCTDA contracts the services of the ACVB to manage the program of work.
3 Asheville Convention & Visitors Bureau Occupancy Tax Revenue Marketing & PR Group Sales & Service Product Development 75% 25% Funded and operated by the Chamber
4 Tourism Builds Community Attracts visitors who spend $1.7 billion annually, supporting 25,000 jobs and generating $144 million in tax revenue Creates awareness and reputation a foundation for economic development Builds community assets enjoyed by visitors and residents
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10 Asheville sells itself. Right?
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12 How did we go from this
13 To this
14 Public Sector Vision Promotion Sustainable Transformation Private Sector Passion Product
15 Occupancy tax creates a funding stream to market the Asheville area, building the customer base & enhancing economic vitality.
16 Economic Impact of Visitor Spending Less than $200 MILLION $2.6 BILLION in 1983 in 2014
17 Tourism in Buncombe County generates $143.5 million in state & local taxes, totaling $1,232 per household 25,000 jobs in Buncombe County are supported by the visitor spending Without tourism the unemployment rate in Asheville would be 15.9%
18 The Asheville Convention & Visitors Bureau generates a base of customers, and connects visitors to local businesses through free marketing services.
19 Asheville CVB Provides Free Sales & Marketing for More Than 1,200 Local Partners
20 Marketing & PR Building brand awareness through advertising, media relations, social, and content
21 3.8 Billion Impressions
22 MYTH: The Visitor Economy In Asheville Isn t That Big
23 Destination Asheville Will Be a $2.1B Brand By 2020 Direct Revenue Generated by Buncombe County Tourism $2,145B $1,528B $1,710B proj Source: The Economic Impact of Tourism in Buncombe County, 2014 Analysis, Tourism Economics
24 Global Brands With $ Billion in Sales Global Brands With $ Billion in Sales
25 Tourism Product Development Fund A grant program funded by the occupancy tax that provides a capital for development projects which will significantly increase patronage of lodging facilities
26 Tourism Product Development Fund Est.2001 Directed by the BCTDA v Established TPDF Committee to evaluate applications and recommend projects to BCTDA for funding
27 TPDF has awarded a total of $27 million to 32 projects since the fund s inception
28 John B. Lewis Soccer Complex at Azalea Park 2002, 2004, 2009, 2015 Awarded $2,300,000
29 Grove Arcade 2002 Awarded $500,000
30 The Bonsai Garden at the North Carolina Arboretum 2003 Awarded $750,000
31 Asheville Visitors Center 2003 Awarded $750,000
32 Asheville Area Wayfinding 2007, 2010 Awarded $1,800,000
33 Pack Square Park, Pavilion & Canopy 2004, 2007, 2009, 2013 Awarded $2,550,000
34 Asheville Art Museum 2007, 2009 Awarded $1,500,000
35 U.S. Cellular Center City of Asheville 2010, 2012, 2013, 2016 Awarded $5,675,000 $5,675,000
36 The Collider 2014, 2015 Awarded $300,000
37 RiverLink Pearson Bridge River Access 2014 Awarded $25,000
38 Enka Center Ballfields 2014 Awarded $2,000,000
39 Riverfront Destination Development 2014, 2015 Phase I Riverfront Arts & Culture Dispensary Boat ramps Phase II Beaucatcher Greenway French Broad River Greenway Network Crosswalk and river access at Amboy Park Awarded $2,800,000
40 WNC Nature Center 2015 Awarded $313,000
41 Asheville Community Theatre 2016 Awarded $1,000,000
42 WNC Farmers Market 2016 Awarded $380,000
43 BCTDA Tourism Product Development Fund Projects, * Includes both City-requested grants and grants for projects on Cityowned properties $ to Projects on City- Owned Property* 60% ($16.6 million) $ to All Other Projects 34% $ to Projects on State- Owned Source: AshevilleCVB.com
44 MYTH: Visitors Don t Generate any Tax Dollars other than Occupancy Taxes
45 Source: The Economic Impact of Tourism in Buncombe County, 2014 Analysis, Tourism Economics; NC Department of Revenue Sales Tax Contribution Buncombe County SALES Tax Paid by All Businesses, Gross, FY2015 ($205 Million) All Other Taxpayer- Generated 71% Visitor Generated 29%
46 Property Tax Contribution Buncombe County PROPERTY Tax Paid, All Jurisdictions, FY2015 ($261 Million) All Other Taxpayer- Generated 83.5% Visitor- Generated 16.5% Source: The Economic Impact of Tourism in Buncombe County, 2014 Analysis, Tourism Economics; NC Department of Revenue
47 Largest Category of Local Taxes Generated by Buncombe County Visitors are Property Taxes Category Property Sales (Local Share) Other Local Taxes & Fees Total Local Tax (Excl. Occupancy) Local & State Taxes Generated by Area Visitors in 2014 $43 million $12 million $3 million $58 million Sales (State Share) $48 million Other State Taxes & Fees $29 million Total State Tax $77 million Total Tax Savings per Household Source: The Economic Impact of Tourism in Buncombe County, 2014 Analysis, Tourism Economics $1,325
48 Because of Tourism, Sales Taxes Generated Per Capita Here Exceeds Many Other Counties County 2015 Population Estimate FY2015 Sales Tax Collected, Gross (Millions) Per Capita Sales Tax Collected (If All Counties at 7% Rate) Buncombe 253,178 $205 $810 Buncombe, Less Visitor Sales Taxes 253,178 $146 $577 Mecklenburg 1,034,070 $872 $814 New Hanover 220,358 $179 $812 Cabarrus 196,762 $135 $686 Wake 1,024,198 $634 $642 Forsyth 360,019 $217 $625 Guilford 517,600 $307 $615 Cumberland 323,838 $176 $543 Source: The Economic Impact of Tourism in Buncombe County, 2014 Analysis, Tourism Economics; NC Department of Revenue; Census Bureau
49 Destination Marketing Halo Effects Sustains and builds airport traffic Meetings and conventions that expose the county to decisionmakers Helps attract new companies the first date of economic development Supports an important maker Promotes economy Asheville brand to millions of people, and consumers
50 Thanks to destination marketing by the CVB & its partners in the past 15 years, visitor spending in Buncombe County increased 120%. Statewide, visitor spending increased an average of 82%. The difference between 120% and the average is $174 million per year in spending at local businesses. Buncombe County achieved the highest growth rate among the top 10 counties over those 15 years. Source: The Economic Impact of Travel on North Carolina Counties, prepared for Visit North Carolina by the U.S. Travel Association
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