The State’s Nov. 11 editorial, “City must make most of limited
food tax proceeds,” was right on target. By divvying up restaurant
“hospitality” taxes among dozens of eligible groups, it is doubtful
any real impact will be made in advancing tourism, not just in
Columbia but in any community that has a local restaurant tax. This
also applies to state and local accommodations taxes, which are also
designed to spur the community and tourism.
The hospitality industry is opposed to these industry-specific
taxes, especially when they are not used to advance area tourism and
the local economy. When you consider the average visitor to our
state in 2002 spent $57.05 per day, and was traveling with three
other people, it pays a community to attract as many tourists as it
can, and to keep them in town as long as it can.
The combined spending of our state’s tourists generates almost 10
percent of all taxes collected in South Carolina. But what can a
community do to lure more visitors?
If tourism-related taxes are carved up a little here and a little
there, not much can be done to entice people to visit our area. If,
instead, large worthy projects were considered, and the largest
portion of these funds was used to advertise and promote the area
and all of its attractions and products, people will not only visit,
they might return for multiple visits and even consider retirement
to the area.
The state is fortunate to have true tourism destinations such as
Myrtle Beach, Charleston and Hilton Head, but all areas of the state
can attract visitors if the tourism products have value and are
marketed properly. Newberry is a great example of having good
products — the Opera House, restaurants, retail stores and other
reasons to visit — and marketing them.
But why use the majority of the funds for advertising and
promotion? Simple: For every dollar that South Carolina Parks,
Recreation and Tourism spends on advertising, it generates $23 in
the state’s economy. Myrtle Beach generates a $300 to $1 return.
If Columbia were to pool its resources through a unified
marketing plan coordinated by the agencies whose purpose is
specifically to recruit visitors, business would increase not only
for area hotels, but for restaurants, retail stores, gas stations
and other merchants in town. At the same time, local tax coffers
would increase.
If you look at the return-on-investment numbers and take the low
end, $23 for every dollar spent in advertising and promotion, a $1
million ad campaign should generate at least $23 million in our
economy. If coupled appropriately with area hotel taxes, a $10
million ad campaign could generate over $230 million in not only
Columbia, but also the entire Midlands.
The dollars these visitors spend in the area can generate over
$10 million in new state sales taxes, benefiting public education
and other state services, all because the area was promoted in a
uniform and focused fashion. This might mean developing a marketing
piece targeting young families by promoting the zoo, EdVenture and
State Museum in one ad. It might mean coupling the lake, the river
and Congaree National Park to outdoor enthusiasts; or maybe people
interested in history would be attracted with an ad featuring our
historic homes, the State House and other historical
attractions.
By combining the individual attractions together through a
unified program, not only will the area be able to have more
purchasing power to buy more advertising space, the unified ad will
encourage visitors to see more than one attraction, thereby spending
more money in the area economy.
If used as the General Assembly originally intended to spur a
tourism economy for all areas of the state, these tourism-related
taxes on prepared foods and hotel accommodations can help improve
the area’s economy to the financial advantage of all citizens.
To that end, elected officials in our cities, counties and state
government should do everything in their power to make sure that as
much money as possible is made available for paid-space advertising
and promotion to spur tourism.
Mr. Sponseller is president of the S.C. Hospitality
Association.