How should lodging tax be used?

SAN JUAN ISLAND VISITORS INFORMATION BUREAU

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How should lodging tax be used?

posted 06/28/05
Should 100 percent of the hotel/motel tax earmarked for promotion of tourism go to one entity? According to supporters of the San Juan Islands Visitor Bureau, the answer is yes. A request that $25,000 of the $350,000 be used by others was met with warnings of the negative impact of fragmentation.

San Juan County Commissioner Rhea Miller brought up the idea of using some of the funds to cover the costs of maintaining public restrooms in Eastsound and Lopez Village. "It is crude and rude not to be able to provide for their (tourists) needs," she said during the June 21, 2005 Board of County Commissioners meeting. She also said the Chambers of Commerce on the three largest islands would like their share of the tax revenue increased from 12 to 15 percent.

Customers of county lodging and camping facilities pay a 4 percent hotel/motel tax on top of the general sales tax. Half of the 4 percent (commonly referred to as the first 2 percent) is divided up between the county Parks, the county Fair, community theaters, and historical museums.

The second 2 percent was imposed in 2002. The Visitor's Bureau was created as the destination marketing organization (DMO) which uses the funds to promote tourism. In 2005 the second 2 percent totalled $352,000. The SJIVB also received lodging tax from the Town of Friday Harbor.

The hotel/motel tax in question cannot be used for operations. The funds could be used by the county Parks Dept to cover promotion costs the department currently incurs. By giving Parks $25,000 for promotion, it would free up other money in the Park budget to take care of the restroom operations. Miller said, if no solution is found, the result would be a county cmployee losing their job, so bathrooms could be cleaned for tourists.

Jim Nelson of the SJIVB board said, " Goal is to try to do promotion in most effective and efficient way possible. Is money used most effectively with one entity or when fragmented?" He agreed the bathrooms needed to be maintained.

SJIVB Director Deborah Hopkins said, " Last year the growth (in the first 2 percent) was $25,000 with help of our marketing efforts. From the logical standpoint that is where that (funds for the restrooms) would come from."

Carl Silvernail of Orcas Island suggested the commissioners could limit the amount of the increase the first two percent recipients receive. It wouldn't be a loss, he said.

Commissioner Kevin Ranker pointed out, the SJIVB used the opposite reasoning to argue against a cap on the amount of increase the bureau receives. " If it is not taking away from them, then it is not taking away from the second 2 percent," he said.

Miller suggested Silvernail go to the recipients of the first 2 percent and share his idea with them.

Mike Stolmeier of Orcas Island drew laughs with his suggestion of a "pot party" as a solution to the restroom problem. On a more serious note he stressed the importance of marketing. "None of us is operating anywhere near capacity," he said. "We can double business if we can get the word out." The recipients of the first 2 percent are consumers of the tax revenue, whereas the Visitors Bureau is the generator of the revenue, he said. "If you take away the tools they (SJIVB) need, the dependents won't do as well."

The commissioners will revisit the issue at a future meeting. In the meantime, everyone was encouraged to try to work out a solution to the restroom maintenance problem.

Visitor Bureau's time is here

posted 03/31/03
San Juan Islands Visitor Bureau is official. San Juan County Commissioners voted 2-1 March 25, 2003 to approve a $300,000 contract with the Business Association of San Juan County for tourism promotion for 2003. The annual contract can be renewed for two more years. "Thank you all for your effort on this," said Commissioner John Evans. "The time is here. Way to go."

BASJC will serve as the Destination Marketing Organization (DMO) for the county. Doing business as the San Juan Islands Visitor Bureau, it will use the revenue generated by the new 2 percent hotel/motel tax passed in 2002. Commissioner Rhea Miller opposed the tax and voted against awarding the contract.

The bureau is authorized to enter into contracts with the chambers of commerce on the different islands for a total amount of not less than 12 percent of the contract price. San Juan County Prosecutor Randy Gaylord said, "In the past the Chambers of Commerce have acted in fractured ways. Money will pass through to them only if they get together and coordinate their activities." The money can only be awarded after a joint, coordinated proposal for visitor promotion services is approved by the Lopez, Orcas and San Juan Island Chambers of Commerce and the SJIVB.

The county's Visitor Information Service (VIS) which has provided information about tourism related facilities and businesses in the county will continue its operations. Under the contract, VIS can receive up to 18 percent of the $300,000. SJISB President Mike Stolmeier said, "We're happy to have them continue as long as they want to."

The contract allows SJIVB to contract with the county's Economic Development Council for monitoring and measurement services for a minimum of $5,000 per year.The analysis may include:

baseline measurement of existing facilities, seasonal demand, occupancy levels and dolar volume of business;
analysis of advertisement and tourist promotion by other individuals and agencies;
survey of visitors before and after their visit to the county;
and an analysis of existing and new data to be collected regarding tourism.

The SJIVB budget will be approved by the county each year. The first budget is scheduled to be reviewed March 31, 2003. At last week's meeting, Miller asked Stolmeier if it was true that the bureau has retained a lawyer for $15,000 per year.

Stolmeier said Attorney Gregory Duff has been paid $1,000 for working on the contract and has suggested a retainer of $1,000 per month for the rest of the year. "Basically, he is building a foundation for contracts," he said. "There is a lot of work for him to do."

Gaylord said there are tight controls over the funds. Invoices will be submitted quarterly. The contract states: "In no event will San Juan County pay for expenses not related to advertising, publicizing or otherwise contributing information for the purpose of attracting visitors and encouraging tourist expansion or expenses reasonably related to providing such services as reflected in the Annual Plan and Budget."

SJIVB Marketing Director Deborah Hopkins is setting up the bureau's office in the San Juan Island Chamber of Commerce office on Spring Street in Friday Harbor. The phone number is 360.378-3277.

Press Release from Visitors Bureau

posted 03/31/03
The San Juan Islands Visitors Bureau was up and running on March 26, 2003 the day after County Commissioners Evans and Nielsen approved a county contract with the organization for tourism promotion services using the new two percent lodging tax funds.

The mission of the San Juan Islands Visitors Bureau, formerly the Business Association of San Juan County, is 'to promote the San Juan Islands as a preferred, year-round travel destination in order to strengthen the County's economy, with particular emphasis on increasing off-season visitation, while respecting the Island's unique and diverse ecosystems, environments, lifestyles and cultures.'

The Visitors Bureau will begin marketing the San Juan Islands through consumer advertising and media relations. April marketing programs include cooperative television ads on KING5 TV with Kenmore Air Seaplanes and Washington State Tourism, as well as participating in the Northwest Travel Show at Bellis Fair Mall in Bellingham. The Bureau also will promote its Web site www.travelsanjuans.com and will distribute 100,000 annual visitors guides in target markets. In addition, the Bureau has assumed the responsibility of continuing to provide valuable visitor contact services which have been performed by the VIS - Visitor Information Services - including a visitor services directory Guide to the San Juan Islands and responding to inquiries. VIS functions and personnel remain unchanged.

The Chambers of Commerce on Lopez, Orcas and San Juan Island, in partnership with the San Juan Islands Visitors Bureau, will continue to provide visitor services to the thousands who call, e-mail or walk-in for visitor information. All three chambers will receive funds from the Bureau to upgrade their visitor services capabilities.

The San Juan Islands Visitors Bureau's Board of Directors has hired Deborah Hopkins to head up its marketing and communications efforts. Hopkins was employed as the Marketing Director for Roche Harbor Village for over two years and served on the Bureau's Board. She brings nine years of visitor bureau marketing experience to the new position.

For more information about the San Juan Islands Visitors Bureau contact Hopkins at 360.378.3277. The Bureau's new office is located within the San Juan Island Chamber of Commerce's office on Spring Street in Friday Harbor.

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