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San Antonio Hotel & Lodging Association
Position Statements
From time to time the Association feels it is necessary to take a open and positive position on issues and challanges affecting our industry on a local, state or national level. Currently, there are two issues that take the forefront in the work of our Government Affairs Committee. These statements approved by the Board of Directors have been shared with our local and state representatives to ensure our elected officials and members of City Staff are aware of our concerns and that we look to them for their support.
December - 2008
SUBJECT: HOTEL OCCUPPANCY TAX AND CONSISTENCY IN ITS USE.
STATEMENT: The San Antonio Hotel Lodging Association supports that the hotel occupancy tax be a top legislative priority of the tourism and hospitality industry to continue and maintain the full state appropriation for tourism promotion in the 2009/2010 state budget and that the city continue to maintain a 3-year rolling average in the 2009 city budget with a minimum 37.5% for tourism promotion in San Antonio. In addition that the city establish a reserve fund for emergency marketing efforts in the event of an extended economic downturn or to attract a unique event to our city.
Background: The San Antonio HOT is one of the highest in the nation at 16.75%, of which 1.75% is Bexar County, 9% is the city, and 6% is state. Only 1/12th of the state hotel tax revenue is dedicated by statue to promote Texas as a tourism destination, The other 11/12 of the state hotel tax all goes to the fund other state general revenue programs. In the past, Tourism has not been provided all of its statutorily dedicated funding in the state budget. The 2007 Legislature did provide the full funding. San Antonio Hotel Lodging Association requests a continuation of the appropriation in the 2009/1010 state budget of the full 1/12th portion of the state hotel tax dedicated to promotion of Texas as a tourism destination.
In a similar fashion, the city budget depends on the revenue source from the Hotel Occupancy tax. In order, to ensure the growth of this source, we must preserve the monies allocated to the promotion of tourism in San Antonio. In the past, San Antonio tourism has not been provided all of it dedicated funding. We support the use of the fund for historic and preservation of venues and cultural arts. We request the city leadership to continue a 3 year rolling average of the city hotel tax revenue with a minimum 37.5% average of the allocated 9% towards the promotion of tourism in San Antonio
In the addition, in the unlikely circumstance of an extended economic downturn or in order to attract unique event to out city, the city should be prepared for a marketing strategy to ensure, protect, and preserve projected monies receive or aggressively pursue a needed event. In recent years, the tragic events of 9/11, forced a downturn in tourism nationwide. San Antonio was able to use funds that were targeted for another event that did come to San Antonio for the promotion of tourism in San Antonio. We believe we should be prepared. Therefore, we request the city establish a reserve fund for emergency marketing effort in the event of an extended economic downturn or to attract a unique event to our city.
FINANCIAL IMPACT: San Antonio’s Hospitality industry remains a “vital and expanding part of the San Antonio economy” according to the recently released Hospitality Economic Impact Study. As of EOY 2006, the financial impact of this industry in San Antonio has grown to over 10 billion and has more than doubled since 1999. “In the 2005-2006 fiscal year 58.7 million was generated from the hotel occupancy tax. As a whole, the Hospitality Industry provided 125.6 million in 2006. This is equivalent to 17.3% of the City’s adopted General Fund expenditure budget if 728.1 million for the 2005-2006 fiscal year”
At the state level, for every $1.00 the state spends on tourism promotion, $9.66 is returned in state tax revenues that are used for all state programs. The San Antonio Lodging Industry depends on the promotion to help the 308 San Antonio lodging operators and the over 100 thousand residents who work within the tourism industry and produce over $412 million in state tax revenue and local tax revenue.1
1 Statistics taken from the Economic Impact of San Antonio Hospitality Industry
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SUBJECT: SAN ANTONIO RIVERWALK CAPITAL IMPROVEMENTS MASTER PLAN
STATEMENT: The San Antonio Hotel and Lodging Association supports the 5 year capital improvement plan to repair the horseshoe of the River Walk through downtown and for the city to fully fund the SAN ANTONIO RIVERWALK CAPITAL IMPROVEMENTS MASTER PLAN of $15.2 M for these important repairs.
Background: The San Antonio River Walk was initially developed in the 1920s as part of a flood diversion program. It has thru the years grown as a unique tourist attraction as well as maintaining its historical and cultural element. It is precisely these characteristics that makes this attraction an economic generator to San Antonio. San Antonio is the seventh largest city in the US with the River Walk being the second most visited attraction in Texas. It is imperative that the preservation and condition of the River Walk meet the highest levels of quality while maintaining its beauty. Capital improvements are needed in the horseshoe of the River Walk through downtown. A study has shown an estimate of 15.2 million is needed for these repairs. It is also recommended that these repairs be done in stages so that that the disruption of the repairs minimize the discomfort to the visitor experience as well as maintain the continuity of business to the businesses located on the River Walk. It is our responsibility to the citizens of San Antonio and to its forefathers that the River Walk capital improvements be a top priority. We request the city to fully fund the $15.2 m budget for these important repairs.
Financial Impact: According to the recently released Hospitality Impact report over 26 million visitors came to San Antonio in 2006 and over half were overnight visitors. According to the recent survey of State Texas Economic Development & Tourism office, the Alamo and the River Walk continue to be the two most visited sites in San Antonio2. Visitors bring new dollars to San Antonio, their spending has multiplier effect. Each dollar of visitor spending generates approximately one additional dollar of income for San Antonio as the effects of this spending work their way through the local economy1
1 Statistics taken from the Economic Impact of San Antonio Hospitality Industry.
2 Survey by D.K. Shifflet & Associates
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