I've been sitting on this one for a few days for fear that it could provide unsophisticated community leaders the idea that Hotel Room Tax is just "funny money" (a Texas Mayor once actually said that to me) that could be diverted from DMOs to other purposes. But then, I began to believe that this is a learning moment for us all.
I've always been a fan of placing a portion of Room Tax into a fund designated for destination development projects that increase the magnetism of a place. Asheville, Fox Cities and Fargo are just a handful of communities that do this.
So...there's this pot of money sitting there, waiting for a cool destination-enhancing project to come along. And, right now...that just ain't happening.
But today, there are our industry friends and partners out there who are hurting. So, let's run the philosophy. The money was designated to enhance the community. The way we enhance the community is to build new stuff. Can we make the case that maintaining our base in these dark days is just as important when developers are not knocking on our doors?
I think we all know the answer to that...and kudos to our friends at the Fargo Moorhead CVB.
The Board recently voted to take $500,000 out of its Destination Development Fund on a COVID-19 relief payment to hotels in the destination to help them through these times. It also approved a Matching Grant Fund of up to $400,000 for non-profit local attractions that face continuing negative impacts related to the pandemic.
These revenues were designated to incent future development (not general DMO operations). Today, they may just offer survival. Who else but a DMO with such a fund is coming to the aid of those most stricken by this nation's response to the virus?
Yeah...pretty much nobody.
Hats off to Charley Johnson, his Board and crew. You make us all proud.
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