2024 10 15 City Council Packet 1
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ATHENS TOURISM TOURISM - HOTEL/MOTEL TAX NUMBERS & RECOMMENDATION FOR CURRENT & FUTURE FUNDING. If there is an Average of 5.5 to 8.5 % (7%) of visitors that stay in the average hotel (between the 4 top visited hotels we collect hotel/motel tax off of) at the price of $134.75 per room per night with a 4% tax allotted to us – We would be collecting our base return to our Hotel/Motel tax actual using this calculation. (Of which numbers vary by event and hotel prices. i.e. – Out of 100 Visitors, 7 staying in a hotel at $134.75 per night with a 4% tax would return to the city a tax of - $37.73 A professional recommendation based on the current SET AND APPROVED annual $75,000 budget to outside agencies– $15,000 per year total for events, assets, and tourism enhancing programming per organization. If an organization has requested less, then the request will stay as submitted. If $15,000 max is set as policy, then as long as tourism money generated by hotel/motel tax increases based off of visitors and there is traceable data to confirm this trend, I would recommend up to a 5% increase if viable per year. For Consideration and Understanding, on averages alone and based only on current reported numbers, the following data points speak to hotel/motel tax collected – ·Athens Art Council – ALL SERIES in 5 applications (Only 3 by state standards can lawfully be considered) included – 2023 through 2024, $4,602.31 actual with $6,000 high average – 2024 through 2025, $6,818.53 actual with $7,750 high average collected in h/m taxes. ·Friendly City Festivals - $14,337.40 actual with $17,000 high average in h/m taxes. ·Athens Main Street – Unable to be currently calculated – But comparable programs in similar sized cities using similar technology – An average of $7,500 in h/m taxes. ·McMinn County Living Heritage Museum - $4,992.87 Calculated average, based on numbers submitted - $5,390.00 in h/m taxes. If taxes collected from retail, food, and gas all give structure to these events, while not actually impacting the hotel/motel tax, I would say based off return on investment, to minimally double what is brought in on tax, or to supersede it based off on large return, the recommended number of $15,000 (or more preferably $17,500) would largely enhance tourism for the city of Athens outside entities. This would increase the limit per organization from a total of $10,000 per piece by $5,000 this fiscal year. **If there is a larger ask then the total of $15,000 then it should be considered special business and considered as such.** 10