Jul
3
2009
1% Tourism Fee and Why it is so important!
Author: randalwallaceHistory is a great teacher. It is there that you can learn from both the mistakes and successes of others and how to take advantage of what you have learned. There is no better place to look at why the 1% tourism fee is so important than at the history of the two big cereal giants of the 1930’s.
At the beginning of the Great Depression there were two giant companies that competed for the prepared cereal market, Kellogg’s and Post. When the depression hit, Post did what most would do; they slashed there advertising budget and cut costs to ride it out. Kellogg’s, on the other hand, aggressively increased its marketing budget, defined its product and advertised , advertised, advertised. Kellogg’s has dominated the market over Post for 70 years. For Kellogg’s, the Great Depression became the Great Opportunity.
When you look at the current economic climate nationally, you cannot help but be frightened. Fourteen thousand jobs were lost in Horry County alone, the state cut out tourism’s two- for- one money, a projection by area experts of a 10% decline in visitor spending that could lead to a 581 million total loss in revenue and 7060 jobs as well. It has the feel of a perfect storm for tourism. However, it could be from that storm we have the perfect opportunity to take our region to the next level.
I admit ,up front, that my only goal last October was to figure out what we, as a city, could do to help our immediate situation. We had just passed a number of ordinances designed to reign in the negative effects of two major bike rallies in the month of May. I knew that those decisions were going to have an impact on certain businesses in our area, and I wanted to figure out a way to help those people as these changes unfolded. In the meantime, the economy grew much worse. I felt we had to do something.
The 1% tourism fee began to spring to life from the very bright people at the Chamber of Commerce that have always made this such a great place to live. What they came up with is a strategic investment for the future that has a component of a huge tax cut for homeowners. A win- win scenario for everybody. We can potentially be the Kellogg’s of the tourism world. The plan calls for a long term branding of our product, Myrtle Beach, as a diverse, affordable, vacation destination. It’s simple and, over the next ten years, we will have the money to make it happen and become THE PLAYER in the southeast.
This fee is our first major investment in tourism by local government . The industry average is only 17% privately funded. Myrtle Beach businesses have been funding up to 66% and piecing together the rest from everywhere else. The short term goal is to invest in our underfunded drive- in and fly- in markets. We have 26 direct service markets that are only 50% actively advertised in and all are underfunded. The fee should allow us to maneuver in these markets.
The midterm goals are to have active Fall and Holiday advertising campaigns that will grow our share of the pie into December. The long term goals to brand the destination and grow our domestic an international air service, hold big events and help us grow into a year round destination, are very exciting. It will take us away from dependence on the spikes of our current mix of events.
My hope is to target these big event promotions in a way to revitalize our downtown. The Myrtle Beach ocean front area is truly our historic district. My thinking is that by placing a number of these potential outdoor concerts, arts festivals, family festivals, craft events etc, into this area, we will see downtown become just as competitive as any of the other newer areas of Myrtle Beach. We need to be dedicated in making this area thrive because it is the heart of Myrtle Beach. The 1% fee has already freed up the monies to make the Oceanfront Boardwalk a reality this winter.
It is an exciting time to be a part of what is happening here in Myrtle Beach. I believe we are making the investment necessary to become the premier resort area in the nation. Investing as Kellogg’s did in grabbing so much of the market share, we will be the leader far into the future. It is one of the things I am proudest to have been a part of making a reality.
(The statistics used were part of a presentation to City Council by the Myrtle Beach Area Chamber of Commerce)
