Wednesday, July 25, 2012

Flat Rock Playhouse creates plan for spending room tax money

Someone help me here--where are the criteria that the Henderson County commissioners used to determine which organization would benefit from a tax rate increase on lodging? Where is the in-depth study on the impact of a tax increase on those most affected, the lodging industry? What am I missing?

From the Times-News:

Flat Rock Playhouse officials have drafted a firm proposal outlining how they would spend about $450,000 in revenue derived from a proposed 1-cent increase to Henderson County's hotel occupancy tax. [Ed. - it's NOT a 1-cent increase; it's an increase of 1% (from 5% to 6%), which is a 20% tax rate increase]

The theater's leaders will present the proposal to county commissioners during a special-called meeting Aug. 8, when the board will hear feedback from the Playhouse, the public, local municipalities and members of the hotel industry before it votes on a room-tax hike. 

A bill recently passed by the state legislature gives the county the authority to raise the occupancy tax rate from 5 to 6 cents, with the additional revenue — about $223,000 per year — earmarked for the Playhouse for two years. Commissioners must give final approval for the bill to become law.

The Playhouse plans to supplement the proposed extra funds with its own marketing dollars to pursue a strategy of "cooperation and integration" among all tourism entities in order "to change the game in terms of tourism in Henderson County," said Producing Artistic Director Vincent Marini.

Playhouse officials also will discuss the plan with members of the accommodations industry — many of whom have spoken out against the room tax increase — during three meetings over the next week. [Ed. - when are these happening and who will be there?]

The Playhouse's plan highlights six strategies for exploring "new and innovative ways" to allow other tourism entities controlled access to its patron base.

Examples include featuring a different local B&B or inn each week in a display in the lobby of the Playhouse Downtown; enabling the 15,000 monthly visitors to the Playhouse website to book vacations that incorporate county museums, lodging, dining, recreation and entertainment options; and the creation of a shared reservation system that allows the Playhouse to act as a central reservation center for county tourism, while allowing hotels, inns, restaurants and other attractions to sell Playhouse tickets....
Okay, so the lodging industry takes an economic hit in order to help fund the Flat Rock Playhouse, and their reward for that is to sell Playhouse tickets. What's wrong with this picture?

Also, being somewhat familiar with computer programming, I question the idea of creating "a shared reservation system"--that is a huge programming task and a potential black hole for money. When did the Flat Rock Playhouse change their mission to become a travel agency/software company?

Read it all.

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