Does the CVB recoup its travel costs?
Published 12:05 am Sunday, June 9, 2013
NATCHEZ — It would take a two-night, fun-filled stay by at least 181 overnight guests at one of Natchez’s most historic — and expensive — hotels to recoup the price of the most costly trip a city tourism official made in 2012.
The tourist-recruiting trip was to Europe — specifically Germany and the United Kingdom.
In 2011 a similar trip was made to France to meet with international travel agents to promote Natchez as a destination for international travelers.
The European trips are worth the time and expense, City of Natchez Tourism Director Connie Taunton said.
Those on the trip — former sales director Selah Havard in both these cases — meet with European travel agents at prearranged meetings.
“In Europe, the travel agent is still a big deal,” Taunton said. “They don’t book their travel on the Internet.”
She said the CVB currently has agencies booking trips to Natchez with whom the CVB visited while in Europe.
“In fact, I ran into (a tourist) just the other day at Mammy’s (Cupboard) that booked the music tour from Memphis to New Orleans,” Taunton said. “That was a direct result of going to Europe.”
The CVB travels not only with the state department of tourism, Taunton said, but with other cities in the state, including Vicksburg or Tupelo.
The CVB did not travel this year to Europe, Taunton said, because the state department of tourism did not organize a trip.
The 2012 European trip cost the CVB approximately $2,817.
Taunton said the “sales mission” trip was done in conjunction with destination cities in the South, and Natchez is often marketed as a destination for travelers flying into Memphis, Tenn., and traveling down to New Orleans.
The CVB’s budget is funded mainly by the city’s 3-percent lodging tax, 1.5-percent restaurant tax and the $2 hotel and bed-and-breakfast occupancy, or heads on beds, tax.
The CVB keeps 2 percent of the 3-percent lodging tax, and the remaining 1 percent goes toward paying of the convention center debt.
The CVB, however, does not keep the 3-percent tax for the Natchez Grand Hotel. Two percent goes toward paying the tax increment-financing bond set up by the city and county in 2006 as an incentive for the hotel’s developers, and 1 percent goes toward the convention center debt.
The CVB gets 1 percent of the 1.5-percent food tax, and the remaining half-percent goes toward paying off the Natchez Convention Center’s debt.
The CVB gets all of the $2 tax money, which is to be used for its marketing efforts for the city.
Natchez Pilgrimage Tours General Manager Emily Edwards said the average stay for a tourist during peak tourism season is two nights.
If a tourist, who was feeling generous with his or her pocketbook, came to Natchez, spent two nights in a river view room in the Natchez Grand Hotel and followed an itinerary available on the CVB’s website, he or she might spend approximately $722 while in Natchez.
That would give approximately $7.67 in total tax money to the CVB, meaning approximately 367 tourists spending that same amount of money would need to visit Natchez in order to recoup the cost of the Europe trip.
If a tourist stayed two nights in the Natchez Eola Hotel and followed the same itinerary as the Grand Hotel guest, they might spend approximately $616.
Because the CVB does not get any of the Grand Hotel’s 3-percent lodging tax money, the Eola Hotel guest would, in actuality, mean more tax money for the CVB.
The Eola Hotel guest’s expenses would net approximately $15.59 in tax money for the CVB.
It would take approximately 181 tourists spending that same amount of money in Natchez to make up the cost of the trip to Europe.
If a frugal tourist, who might be on a tighter budget, came to Natchez, stayed two nights in the Days Inn and also followed a sample itinerary, electing to do some of the low-cost activities in town, that tourist might spend approximately $298 while in town.
That would give approximately $8.22 in total tax money to the CVB, meaning approximately 343 tourists spending that same amount of money would be need to visit Natchez in order to recoup the cost of the Europe trip.