Lodging business owners such as Greg Harvey aren’t necessarily against creating a new tax district to support tourism, a business improvement district that would come with some level of investment from the local hospitality industry.
Harvey and the other 15 lodging business in San Benito County would be at the core of a “tourism business improvement district” – intended to funnel money toward promotion of area attractions. It is an idea on which county supervisors delayed a decision last week in order to get feedback from stakeholders like Harvey.
The TBID idea also could coincide with a recently discussed increase to the transient occupancy tax. Both proposals would lead to additional costs for lodging businesses. The question is whether those additional costs would lead to even more revenue growth due to more visitors.
Harvey said he and his wife Tricia, owners of Joshua Inn Bed and Breakfast, would like to know where the additional money would go once obtained by the theoretical district or county. He said at this point, there is no money from local governments going toward tourism promotion – which he believes is a mistake because a 1-year-old Pinnacles National Park is drawing attention to the region.
“This can be a good thing,” Harvey said. “But tourism needs to be funded now. It’s low hanging now. Pinnacles is hot.
He said for the bed and breakfast, Pinnacles is a primary driver of the business, also in its relative infancy. He said there were an array of calls in particular after the Washington Post recently ran a story about Pinnacles, named a national park 13 months ago. One of those calls was even from as far away as Germany.
“We’ve had a boatload of calls in the last month and a half.” Harvey said.
The naming of Pinnacles as a national park and the revival of the Hollister Rally – two internationally known events – have spurred renewed interest in promoting tourism as a way to boost the ailing local economy. At the same time, government leaders are tight on funding – leading to talks about the TBID and TOT increase from its current rate of 8 percent.
County supervisors last week put off a decision on whether to initiate the process of launching a TBID, which would require approval from a majority of affected businesses, along with approvals from the two cities, said Janelle Cox, a management analyst for the county.
She explained such details to the board. Supervisors, though, weren’t comfortable going forward because they had not yet heard from stakeholders like the Joshua Inn owners and others. That meeting had been scheduled for a day after the board meeting.
Supervisor Jerry Muenzer, whose opposition led a reversal of an idea to rename Highway 25 as Pinnacles National Park Highway, told other board members last week that he is “very concerned” about the prospective TBID. Muenzer last year cited his constituent’s opposition to the highway renaming, and visitation to Pinnacles in general, as his reasoning to reverse course on the highway renaming. He also proposed the TOT hike, which potentially could be placed on a ballot next year.
“The industry could see it as double taxation,” Muenzer said.
None of the current lodging businesses had representatives speaking at the board meeting, though San Juan Oaks Golf Club Scott Fuller – representing a future lodging interest – did offer his take during the public comment period.
Fuller said after communicating with lodging operators, his first impulse was that moving ahead on a TBID last week would have been putting “the cart before the horse.” He agreed with supervisors about the need to hold the stakeholders meeting before progressing any further on an official level.
“A sales job is required to make this happen,” he said.
Harvey and Cox said there were four lodging businesses represented at the stakeholders meeting last Wednesday. Going away from the meeting, the lodging businesses expressed a desire to meet collectively on their own and then come back with questions or comments. The Hollister council and county board are expected to reconsider the TBID idea at their meetings early next week.
