Cashiers business owners led the charge against a proposed tax increase on overnight lodging in Jackson County during a public hearing this week.

Several lodging owners complained that tourism is already down because of the economy. Asking tourists to pay a higher tax when they are reluctant to travel in the first place is adding insult to injury, they argued.

“This is our bread and butter,” said Richard Hattler of Mountain Lake Rentals in Cashiers, adding that a tax increase in these times of economic hardships is “insane.”

SEE ALSO: Is room tax hike aimed at helping scenic railroad? 

George Ware of Chalet Inn said tax increase would represent an “ill-advised action at the worst-possible time.”

About 40 people packed the hearing before county commissioners, with a dozen speaking out against the tax increase.

“You are going to negate the efforts of the tax itself,” said Judy Brown, president of the Greater Cashiers Area Merchants’ Association. “I think this is going to end up blowing up in our faces.”

Jackson leaders have proposed doubling the room tax from 3 to 6 percent. The room tax raised $440,000 last year, which is pumped back into tourism promotions.

The extra revenue from the proposed tax increase should mean more money to market Jackson County as a destination, which in turn should increase tourism. That’s something supporters say Jackson County sorely needs.

Overnight stays have declined by 12 percent in Jackson since 2006. Jackson has fared worse on the tourism front than other counties and has failed to rebound as well as its neighbors.

But a room tax increase is the wrong approach, opponents argued. It would put Jackson’s room tax higher than surrounding counties: Haywood and Transylvania are at 4 percent, while Macon and Swain are at 3 percent.

Tourists are already penny pinching as it is. Industry-wide, lodging owners note a major trend in how visitors book their trips these days.

“It is a last minute reservation, they want only one night, they want a discount, and they want the bottom line of how much it is going to cost,” said Michelle McMahon, owner of Mountain Brook Cottages for more than 30 years.

McMahon claims tourists are savvy enough these days to ask about extra taxes and fees, factoring the total cost — not just the advertised nightly rate — into their decision about where to stay.

“They compare, compare, compare,” McMahon said. “Nobody truthfully cares this is Jackson County. They just want to come to the mountains.”

Mary Korotwa, owner of Cashiers Resort Rentals, said the county is barking up the wrong tree in its quest for more tourism tax money. Instead, the county should be tracking down people who rent out their mountain homes and cabins to vacationers under the radar without levying the tax and remitting it to the county.

“You are leaving money on the table,” Korotwa said. “There are legions of homeowners in the county renting their own properties who are not paying the tax.”

Opponents overwhelmingly hailed from the Cashiers area. None of the county’s large chain hotels showed up.

That led County Commission Chairman Jack Debnam to wonder whether opposition to the rate hike is shared by the majority in the tourism industry. Debnam said the goal is to help tourism, not hurt it.

“We are trying to figure out how to promote Jackson County,” Debnam said. “We’ve got to be able to do a better job than we’ve been doing.”

Finding the best way

Controversy over the room tax increase has opened other wounds in the county. One is whether tourism tax revenue should continue to be divvied up between two tourism entities — the Jackson County Travel and Tourism Authority and a separate Cashiers Travel and Tourism Authority.

Both of those contract with either the Jackson County Chamber of Commerce and Cashiers Chamber of Commerce to carry out on-the-ground tourism marketing. Manning a visitor center, answering phones, mailing out brochures, placing ads in magazines or on billboards, managing a travel web site — all these functions are carried out by the respective chambers of commerce rather than an explicit county travel and tourism staff.

The county has floated the idea of merging the separate Jackson and Cashiers tourism agencies into a single countywide tourism authority. The chambers of commerce fear they could lose their starring role — and their cut of the room tax revenue — under a new structure.

Robert Jumper, chairman of the Jackson Travel and Tourism Authority, spoke up for the vital role played by the Jackson chamber when it comes to tourism.

The Jackson County Chamber of Commerce has the skills, knowledge and expertise to orchestrate tourism promotions on behalf of the county, Jumper said.

“We want our voice to be heard,” Jumper said, adding that any new countywide entity should honor the existing arrangement with the chamber

SEE ALSO: Railroad wants money, county wants assurances 

Debnam said not to worry. He said the two chambers of commerce would, in all likelihood, remain the go-to entities for carrying out the scope of tourism work.

“I think there is a big misconception about what is going to happen,” Debnam said.

Commissioners didn’t offer any comments of their own following the hearing. They will hold a work session to talk about what to do at 1 p.m. Monday, Nov. 14, in the county administration building. The earliest they would vote is at their next formal meeting on Nov. 21.

The commissioners previously voted 4 to 1 on their intent to increase the room tax, but that was prior to such backlash from Cashiers lodging owners. One commissioner is rumored to have changed his mind.

Meanwhile, lodging owners fighting the tax continue to rally their forces. They are forming a Jackson County Accommodations Association “to strengthen our voice,” said Henry Hoche, owner of Innisfree Inn By-the-Lake in Glenville.

As for a compromise, such as increasing the tax to only 4 percent as neighboring Haywood and Transylvania have done, Hoche wasn’t interested. A more modest increase from 3 to 4 percent would bring in another $115,000 a year to bolster tourism efforts. But it simply isn’t needed, Hoche said.

Motorcycle rallies are all the rage these days in Western North Carolina, and Franklin tourism leaders are busy finalizing plans to take their first bite out of that tempting economic pie.

“Rumble in the Smokies” is scheduled to take place for three days next August. This is Macon County’s initial foray into hosting a large-scale, officially sanctioned motorcycle rally.

Starting in January, the event’s promoter will be hyping the rally via booths setup at events such as the Great American Motorcycle Show in Norcross, Ga., and the International Motorcycle Show in Charlotte, plus handing out fliers at rallies later in the year in Daytona Beach, Fla., and in Myrtle Beach, S.C.

“Riders want to see the vendors, and what Franklin has to offer, and to get out and ride. What better place to lay your head down at night after riding than in Franklin?” said Sylvia Cochran, of USRiderNews, the Georgia-based promoter, when asked whether she was concerned that the WNC motorcycle-rally angle might be a tad oversaturated.

Listeners were left to extrapolate from this response that no, Cochran in fact doesn’t consider the market too crowded.

But such events have become increasingly commonplace in WNC over the past decade, perhaps nowhere as much as in Maggie Valley, boasting five major rallies every year. The rallies, along with Maggie’s proximity to the Parkway and a world renowned motorcycle museum, have cemented the town as a motorcycle haven, witnessed by the diners, bars and motels plastering their placards with motorcycle friendly messages.

“It is extremely important to Maggie Valley’s economy. I’d estimate it at well over 50 percent,” said Marion Hamel, director of the Haywood Hotel and Motel Authority.

Cherokee also has its share of rallies. The Survivors Motorcycle Rally was held there twice a year since the mid-1980s — until this year when Cherokee pulled the plug on the twice-a-year event.

And that vacancy in the regional rally calendar, according to Franklin tourism officials at a Tourism Development Authority workshop last weekend, is helping ensure the likely future success of their new rally.

But they might be counting Cherokee out of the mix a bit too soon.

Matthew Pegg, executive director of the Cherokee Chamber of Commerce, said that although Cherokee didn’t have the spring or fall rally in 2011, “it is something that is being looked at for 2012,” as well as other events.

“I don’t believe the market is oversaturated, but in order to have a strong rally there should be something that sets it apart from the others,” Pegg said. “WNC is an ideal setting for motorcycle enthusiasts and continues to be a strong market for regional tourism. With the natural beauty we enjoy, and an abundance of great riding roads, people are naturally drawn to the area. Our job as a region is to take good care of them while they are here.”

Maggie Valley business owner Robert Leatherwood believes another motorcycle rally will prove good news for all merchants in the region. He said it would help to further solidify the grip on this all-important motorcyclist-as-tourist niche.

Rallies such as the Rumble in the Smokies, are the best way to attract those particular dollars, he said.

“I’m glad that Franklin is doing one,” Leatherwood said. “We’d help if needed — it’ll be good for WNC, and it’ll do good for Franklin to have one over there.”

Leatherwood owns the new Stingrays bar, strategically positioned near Maggie Valley’s Wheels Through Time motorcycle museum. During rallies, he gets crowds of motorcyclists visiting his bar. His waitresses, dressed in bikinis, offer free bike washes, a popular draw indeed, Leatherwood said. And he opens the normally day-closed bar instead of just at night.

Cashiers could soon lose autonomy over its tourism marketing efforts if a plan to merge two separate tourism entities in Jackson County goes through.

While Cashiers tourism leaders are fighting to save this independent marketing arm, those in favor of a merger question whether the Cashiers solo approach has hampered overall tourism efforts in the county.

“This is a chance for the county to determine whether it is getting the best return on its investment,” County Manager Chuck Wooten said. “I just don’t believe there is a lot of cross communication going on. They are focusing on their one area of responsibility, and we are missing out on some opportunities.”

Dual tourism entities — namely the Cashiers Travel and Tourism Authorities and the Jackson County Travel and Tourism Authorities — are less effective than just one entity would be, according to Wooten.

“It appears to be if we had a single travel authority we would have an opportunity to develop a countywide strategic advertising plan and deploy our resources to focus on the specific areas of the plan,” Wooten said.

Cashiers’ tourism agency has isolated itself from larger tourism efforts in the county. Cashiers does not share its marketing strategy or advertising campaigns with the rest of county, leaving the larger Jackson tourism entity in the dark on how Cashiers spends its allotment of tourism tax dollars.

Although Cashiers representatives sit on the board of the Jackson Travel and Tourism Authority, no one from greater Jackson County sits on the Cashiers board. The result is a one-way street, with Cashiers being privy to the tourism activities carried out by Jackson but not the other way around.

Sue Bumgarner, the director of the Cashiers Travel and Tourism Authority and the Cashiers Chamber of Commerce, was unable to provide basic information about their activities.

• She does not keep an accurate count of visitor center walk-ins.

• She could not provide information about how many web hits or telephone inquires the agency got.

• She said she did not have a list of how the Cashiers tourism authority has spent its advertising budget over the past year.

• Minutes from the quarterly meetings of the Cashiers tourism board were not readily available. They are kept in hardcopy format only in boxes at an off-site storage unit. Minutes have not been provided to the county despite a request to do so.

• A database of prospective visitors who have requested travel literature is not shared with the Jackson tourism agency, despite the Jackson tourism agency sharing all of its leads with Cashiers.

The heart of the issue is how best to spend tourism-tax revenue. A 3 percent tax on overnight lodging in the county raised $440,000 last year. The money is pumped back into tourism marketing and promotions.

Tourism revenue has declined in Jackson County by 12 percent since 2006. Jackson isn’t entirely alone. The recession-driven trend was mirrored across the mountains, although to a lesser extent.

Jackson fared worse than its neighbors, experiencing steeper declines. And while surrounding counties have since rebounded to their pre-recession levels, Jackson is still down.

To improve matters, Jackson leaders plan to double the room tax from 3 percent to 6 percent. The extra revenue will mean more money to spend on marketing Jackson County as a tourism destination and hopefully in turn, increase tourism.

A majority of Jackson County commissioners have voiced support for increasing the room tax, with four of the five in favor of the plan.

The debate has now turned to whether there should be a single tourism authority to steer marketing efforts and provide oversight for how the tourism-tax revenue is spent.

Currently, the room tax is split between the Cashiers tourism agency and the Jackson tourism agency. Cashiers gets 75 percent of the lodging tax generated in the Cashiers area — which amounted to $177,000 last year. The remaining $263,000 went to the Jackson Travel and Tourism Authority.

By joining forces, the two could save on overhead and administration, freeing up more dollars to spend on marketing, Wooten said.

“Sometimes I think we get caught up in the ‘that’s way we have always done it’ mentality and this may restrict our opportunity to grow,” Wooten said.

Bumgarner would not say specifically whether she wants the Cashiers tourism agency to merge with a single countywide one, saying she would have to consult her board before sharing her views publicly.

“I would rather not get into it until we know for sure what is going on,” Bumgarner said.

But, she did say that a Cashiers-focused tourism agency is better positioned to market Cashiers than a countywide organization.

“Just being here and knowing the market and what people are looking for, it is a whole different area. We are looking for people to come up and buy million dollar homes,” Bumgarner said. “We are marketing to a whole different group I guess you would say. I felt in order to do that we needed to be able to place ads in different kind of publications.”

Shotgun advertising

Running advertisements — whether in magazines, billboards, or online — is a key component of tourism marketing.

Bumgarner was unable to provide a list of where she has run ads over the past year. She said she did not keep a list of which magazines she has run ads in or what months they ran. Cashiers spends close to $60,000 a year on advertising.

“I would have to go back and think of which ones I’ve done. I don’t have time to do that. I don’t have time to go back and look at all those ads,” Bumgarner said.

Bumgarner also does not share her advertising schedule with her counterparts at the Jackson tourism entity, despite a standing request by Julie Spiro, executive director of the Jackson County Travel and Tourism Authority and the Jackson County Chamber of Commerce. Knowing which magazines, billboards and other advertisements Cashiers has planned would allow the two entities to maximize their marketing dollars.

Initially, Bumgarner was ambiguous when asked whether she shared her advertising schedule with the Jackson tourism arm. She answered that “they have the same ad agency as us.”

When asked again whether she gave Jackson a copy of her advertising schedule, Bumgarner replied: “I am on the travel and tourism board in Jackson County also.”

When asked a third time, she said the two entities sometimes split the cost of ads in magazines. When asked a fourth time whether she shared her ad schedule with Jackson, she said, “They know our ad schedule.” When asked how, she answered, “because I sit on their TTA board.”

Finally, Bumgarner said she did not provide Spiro with Cashiers’ advertising schedule.

“I don’t give out our whole schedule … not unless they ask for it or want to see it,” Bumgarner said, adding, “It is no big secret.”

Spiro said she has asked to see it, but has never gotten one.

The Jackson tourism entity develops a marketing strategy and advertising plan for the year each spring. Bumgarner gets a copy and so does the county.

The need for niche marketing — marketing that caters to Cashiers’ unique tourist demographic — is the chief argument of Cashiers tourism leaders who want to hang on to their own tourism arm. Cashiers knows best how to market and promote Cashiers, they say.

However, Bumgarner could not provide a list of what that advertising is exactly.

About half of Cashiers’ advertising budget is managed by an ad agency. The agency is contracted to design and place ads on Cashiers’ behalf.

For the rest, Bumgarner places the ads herself. She is able to take advantage of last minute discounts on ad space or buy ads to promote special events that come up over the course of the year, she said.

Bumgarner referred questions about those specific ads to the county finance office, however, which pays the bills when invoices for the ads come in.

Most of the invoices, however, don’t include the name of the magazine, nor the month that an ad ran. The invoices are sent by publishing companies that usually have numerous magazines under their umbrella.

A review of advertising invoices from the ad agency for Cashiers show that it places ads in four magazines over the course of the year for Cashiers: AAA Go, AAA Going Places, Blue Ridge Country and Southern Living. The Jackson tourism entity ran ads in those same publications, according to a review of invoices held by the county finance office.

Nuts and bolts

When a prospective tourist requests information about the area, tourist entities mail out a packet of brochures and guides designed to seal the deal on coming to visit.

The Jackson County Travel and Tourism Authority shares every inquiry it gets with Sue Bumgarner, the head of the Cashiers tourism arm.

That way, Cashiers can send out its own Cashiers-tailored literature and brochures to prospective tourists, in addition to what’s being sent out on behalf of the whole county, said Spiro. Spiro shares responses that come in from magazine ads, as well as a database of people who have called or emailed to request travel information.

“If I get leads from AAA Go, Blue Ridge Parkway, Southern Living, I just forward those to (Bumgarner) because I don’t know if she has those leads or not, so I just share the leads with her,” Spiro said.

Bumgarner, however, does not share inquiries coming in to the Cashiers office with the Jackson Travel and Tourism Authority. Bumgarner was vague initially when asked whether she shared visitor inquires with Spiro. At first, she said “yes.”

But when asked specifically how she shared the inquiries, Bumgarner said that she actually did not share inquires that came in from magazine ads — she only shares inquires from people who call or email asking for travel information.

“Yes, we share those. We email them back and forth,” Bumgarner said.

However, Spiro said she has not received any leads or visitor inquires from Cashiers barring a few times in early 2010 from one of Bumgarner’s assistants. But that person left, and since then, Spiro has not gotten any inquiries from Cashiers despite asking for them from time to time.

Upon further questioning, Bumgarner said she shared inquires with members of the Cashiers Chamber of Commerce who pay an extra fee for the inquiry list.

“We send it out to our members that pay to get the inquiry list every week,” Bumgarner said.

Inns, cabin rentals, golf courses and the like can use the inquiry list to send out their own brochures, peppering the prospective tourists with a litany of travel literature in hopes of luring them to their particular establishment.

But, the list isn’t available for non-chamber members.

“You can’t have it, not from us,” Bumgarner said.

Other tourism entities that get tax dollars for marketing make the inquiry list available to all accommodations owners, since they all help collect the tax.

“The accommodation owners are provided it free of charge,” Spiro said of the inquiry list produced by the Jackson tourism agency.

Tracking visitor numbers

The Cashiers visitor center does not keep an exact record of how many walk-in visitors come through its doors.

Bumgarner pegged foot traffic at the visitor center as “close to 10,000” so far this year. Most visitor centers, including those in Maggie Valley, Waynesville and Sylva, use a clicker to count walk-in traffic.

Cashiers uses estimates. Bumgarner was initially vague about the methodology for tracking visitors.

“Just by, you know, daily counts,” Bumgarner said.

When asked specifically whether her office used a clicker to count each person, Bumgarner replied, “we just estimate at the end of the day. I just kind of check off at the end of the day how many we had.”

As for telephone calls or web hits?

“Oh Lord, I have no clue on those,” Bumgarner said.

The visitor center run by the Jackson County Chamber of Commerce in Sylva keeps an exact count of daily walk-in traffic, telephone calls, email inquiries, web page views and downloads.

“All those mediums are ways we can track how well marketing is and is not working,” Spiro said.

Tracking the number of inquiries and traffic from month to month and year to year also provides a picture over time of whether tourism is trending up or down. Bumgarner did not have tracking data accessible to share, saying that it was not saved on her computer but instead existed only on paper and was located in boxes at an off-site storage unit.

Meeting minutes

Bumgarner also was unable to provide minutes from past tourism board meetings. She said she does not save notes or minutes from the meetings on her computer. Bumgarner said she types up the minutes from hand-written notes, prints them out, then deletes the file, keeping only the hard copy.

Bumgarner did not have copies of back minutes readily available, however. They are kept in boxes at an offsite storage unit and would be difficult to pull out, Bumgarner said. They are all mixed in with boxes of magazines, Bumgarner said.

The minutes are supposed to provide a record of what the Cashiers tourism board discusses at its quarterly meetings.

The board is charged with developing and guiding a tourism marketing strategy — finding the best way to spend the roughly $180,000 a year in tax dollars allocated to promote Cashiers.

As a public entity, the Cashiers tourism board is required by law to keep minutes of its meetings and share them with the public upon request.

County officials asked Bumgarner to start providing minutes from the Cashiers tourism board meeting earlier this year, but still have not received any.

The Jackson County Travel and Tourism Authority shares a copy of its meeting minutes with the county.

Doing so keeps the county apprised of the what the Jackson tourism entity is up to — spelling out its marketing strategy, plan and vision and a snapshot of its activities from the month.

Cashiers’ failure to do likewise is in violation of the county’s original legislation that first created the Cashier Travel and Tourism Authority. By law, both Jackson and Cashiers tourism arms are supposed to provide quarterly reports to the county of its activities. This mandate was included in the original legislation creating the two entities in 1987.

Shortly after county commission Chairman Jack Debnam took office in January, he asked both tourism boards to start making the quarterly reports. Spiro, who already provided copies of her board meeting minutes to the county, began producing quarterly activity reports as well.

Bumgarner does neither. County Manager Chuck Wooten believes Cashiers is not satisfying the county requirement for quarterly reports on their activity.

“It seems to be there would be at least some understanding or expectation they would at least update commissioners on what activities they are doing to try to improve and increase travel and tourism in the county,” Wooten said.

Chamber fate

The Jackson County Chamber of Commerce and the separate Cashiers Chamber of Commerce get a cut of the tourism tax dollars to carry out the job of tourism promotion.

The Cashiers Chamber of Commerce gets $60,000 a year from the Cashiers tourism agency. It accounts for 40 percent of the Cashiers Chambers total budget of $146,000.

Jackson Chamber of Commerce gets $72,000 a year in room tax dollars, plus another $9,000 a year in rent to subsidize the overhead of the visitor center.

If the separate Jackson and Cashiers tourism arms were merged into a single countywide entity, the respective chambers of commerce would most likely continue getting their cut of the room tax money.

“There is no reason to think you wouldn’t continue to utilize the chambers to do those thing you have to do on the ground to distribute the brochures to answer the telephone to run the visitors bureau,” Wooten said. “Someone has to provide the services they currently provide, so my belief is the chambers would continue providing these services and receive support accordingly.”

Wooten said the county would like to see a formal contract outlining the arrangement with the chambers, however.

“There should be some kind of written understanding of what the expectations are in return for the funds provided,” Wooten said.

The Cashiers Travel and Tourism Authority has not voted on a contract with the Cashiers Chamber of Commerce since 1987, Bumgarner said, despite the dollar amount awarded to the Cashiers Chamber increasing over the years.

If the plan goes through, the two tourism entities that oversee tourism tax dollars for their respective regions — the Jackson Travel and Tourism Authority and the Cashiers Travel and Tourism Authority — would be dissolved and a single entity formed in its place.

Wooten has floated the idea of a nine-member countywide tourism board with cross-county representation.

Tourists staying in Jackson County will pay more on their hotel bills starting Jan. 1. Commissioners this week hiked the tax from 3 to 6 cents, the highest room tax rate allowed by state law.

“If this money is spent wisely, I think it might be a good thing,” Dillsboro Inn owner T.J. Walker said Tuesday. “I’m not against it — but I’m not aware of it enough to be for it, either.”

Jackson County will have twice the room tax of most Western North Carolina counties, which largely set the rate at 3 percent. Haywood and Buncombe have 4 percent, Henderson has 5 percent. Only the town of Franklin has a room tax of 6 percent, though outside the town limits in the rest of Macon County it is only 3 percent.

Jackson County commissioners approved the room tax hike this week in a 4-1 vote, with Commissioner Mark Jones of Cashiers casting the lone no vote.

This summer, Jackson County received authorization from the state legislature to increase its room tax up to 6 percent, but had to vote to enact it.

Before voting, county leaders reviewed tourism-related information about neighboring counties. It shows Swain County is leading the pack, with 3,210 tourism-related jobs compared to 560 in Jackson County — a difference likely accounted for by the Nantahala Gorge outdoor scene and Harrah’s Cherokee casino.

Jackson County, like most counties, has seen a decline in room tax collection rates with the recession; starting about four years ago. The past couple of years, room tax collections have been rebounding, but Jackson seems to have faired worse than its neighbors, with bigger drops and a weaker rebound.

“We need to redouble our efforts to attract tourists to Jackson County,” Commissioner Doug Cody said. “Anything we make off tourism helps relieve pressure off of property taxes … these are taxes tourists pay. The citizens of Jackson County will not be burdened with another tax.”

Commissioner Charles Elders described the numbers that show Jackson lagging “troubling.”

Jones, who chairs the Cashiers Area Travel and Tourism, did not specify exactly why he voted against the tax increase. But he did caution his fellow commissioners that “I hope the intent of these monies is to stay within the original intent,” that is, to market and promote tourism.

New state language in the law, Jones said, allows “it to be piggybacked on, it allows for hardscapes — as long as it promotes tourism.” Historically, room tax — under state law — had to be spent on tourism promotion. Now, it can be spent on “tourism-related” developments, which could include sports fields to attract tournaments, greenways or festival venues.

County Manager Chuck Wooten said the original 1987 resolution by Jackson County authorizing a room tax would need modifying before any actions except promotion could take place.

“We don’t have to decide that right now,” Chairman Jack Debnam said.

The formula for distributing the additional room tax is unclear. Currently, 75 percent of room tax collected in Cashiers is used exclusively by Cashiers to promote that area rather than the county as a whole. The rest of the room tax is managed by the countywide Jackson County Travel and Tourism Authority, a public body.

Current tax rates

Haywood County    4 percent

Jackson County    3 percent

Macon County    3 percent, plus town of Franklin imposes an additional 3 percent

Swain County    3 percent

Collection rate comparison

Jackson County

• 2006-2007    $506,574.48

• 2007-2008    $506,004.53

• 2008-2009    $429,378.27

• 2009-2010    $413,939.07

• 2010-2011    $446,339.59

Swain County

• 2006-2007    $305,352  

• 2007-2008    $320,820  

• 2008-2009    $309,802  

• 2009-2010    $335,353  

• 2010-2011    $352,437

Haywood County

• 2006-2007    $935,000

• 2007-2008    $1.04 million

• 2008-2009    $954,000

• 2009-2010    $891,000

• 2010-2011    $962,500

Tourism rebound

Tourism spending is on the rise after three years of stagnation and decline. The North Carolina Division of Tourism, Development conducts an economic impact study every year. It uses the industry standard “Travel Economic Impact Model” to measure the impact of travel, a disaggregated model that looks at everything from lodging and food to retail and recreation. Here’s a decade’s worth of those tourism economic impact numbers.

Haywood

2000    99.9 million

2001    97.7 million

2002    97.8 million

2003    95.9 million

2004    97.69 million

2005    103.4 million

2006    111 million

2007    116.6 million

2008    113.6 million

2009    108.9 million

2010    116.3 million

Jackson

2000    50.5 million

2001    50.1 million

2002    53.6 million

2003    53.5 million

2004    55.7 million

2005    61.7 million

2006    68.2 million

2007    72.6 million

2008    69 million

2009    60 million

2010    62.5 million

Macon

2000    89.7 million

2001    81.1 million

2002    89.8 million

2003    85.9 million

2004    92.2 million

2005    102.5 million

2006    111.1 million

2007    115.4 million

2008    120.5 million

2009    114.5 million

2010    122.1 million

Swain (includes Cherokee)

2000    N/A

2001    199.2 million

2002    214.8 million

2003    216.8 million

2004    213.5 million

2005    222 million

2006    240.8 million

2007    251 million

2008    233.3 million

2009    237.3 million

2010    256.3 million

Jobs directly related to tourism for 2010

Haywood    1,300

Jackson    560

Macon    1,120

Swain (includes Cherokee)    3,210

Visitors to Bryson City will have a free place to go when nature calls once public restrooms are installed in the historic courthouse.

There are plans for the now-vacant courthouse to one day be home to a visitor’s center manned by the Great Smoky Mountains Association and a museum.

But for now, commissioners want to move forward with installing public bathrooms instead of waiting for the rest of the project to come online.

Putting men’s and women’s facilities into the historic structure will cost around $50,000. The county will pay for it with interest earned off the North Shore Road cash settlement.

This would be only the second project paid for with the long-awaited money, yet commissioners didn’t specifically vote on the measure. It will be embedded as a line item in the county’s budget.

The project idea was discussed in a county budget work session on Monday. The four commissioners at the meeting came to a consensus on the plan, and County Manager Kevin King made an administrative amendment to the proposed budget to include the bathroom costs.

The project will get the go-ahead if the budget is approved as-is at the commissioners’ next meeting on August 8.

Commissioners expressed their support of the idea, which would be the first phase of the old courthouse’s revitalization.

“That’d be the first step,” said Commissioner Donnie Dixon. “I think we should.”

The final two portions of the revamp — the museum and visitor’s center, which might also feature a bookstore — must be completed simultaneously, said King.

He hopes they can be finished within the next two years.

What will be done with the remainder of the North Shore interest money this year, another $135,000 or so, remains to be seen.

Earlier in the summer, commissioners were ambivalent when asked about plans for the cash, as there was so little of it built up.

Several were in favor of a committee populated by community members that would vet and recommend projects, but no moves have been made to form such a body.

The first allocation from cash settlement money funded five granite pedestals outside the county’s administration marking major events in Swain’s history. The $20,000 pedestals were partially funded by a $7,500 grant.

The settlement is compensation from the federal government for a road that was flooded by the creation of Fontana Lake during WWII. The county has $12.8 million in the bank and is supposed to eventually receive $52 million.

The money itself will remain untouched, held in trust for the county by the N.C. Treasury Department, but the county gets the yearly interest. The funds made less than 2 percent return this fiscal year which was paid out at the end of June.

Franklin, long a popular byway for motorcyclists heading to Highlands, or via N.C. 28 to the Tail of the Dragon at Deals Gap in Graham County, wants to capture some of those pass-through dollars.

Next year in August, Franklin’s Tourism Development Authority will host a three-day motorcycle rally. It will take place along U.S. 441 north in a field usually reserved for one of the many gem and mineral shows Macon County is renowned for.

“I think it would be great,” said Doug Hastings, the owner of the Moka Latte Express on Highlands Road just outside of Franklin. “This is ideal motorcycle country. Anytime we can bring revenue into the area that is clean — and most bikers are clean — it’s good.”

Franklin joins a long list of towns trying to court the motorcycle dollar. Maggie Valley is already well-established as a biker-friendly town, with numerous motorcycle festivals every year and a renowned motorcycle museum. Cherokee has been successfully tapping the motorcycle market for years as well, along with the string of communities in closer proximity to the infamous Tail of the Dragon and Hellbender routes, each with dozens of twisty curves per mile.

Mike Grubermann, Franklin town planner who serves as a liaison to the TDA, said a topnotch, reputable promoter with considerable experience in organizing similar shows in Georgia has been hired. Plans call for the event initially to be financially subsidized by the tourism group, but to ultimately become self-sustaining.

Grubermann said a motorcycle rally fits well into Macon County’s push to capture more tourism-related dollars.

“The nature and background of motorcyclists have changed over the years — this is not a Hell’s Angels event,” he said.

Grubermann said most tourism-drawing events in Macon County attract about 3,000 people, and that the motorcycle rally is expected to start with 1,000 to 2,000 motorcyclists and build up to the 3,000 number.

“We have some wonderful motorcyclists come through,” said Patti Koch, who owns Peppermint Patti’s Ice Cream & Sweets with her husband, Eric, and supports the concept of a motorcycle rally in Franklin. “They’re all stopping in on their way to the Tail of the Dragon. This year, I’ve seen whole convoys of them.”

Not everybody is enthralled with the idea of bringing in motorcyclists for a rally, however. Alderman Bob Scott said the TDA needs to do more research on holding such a rally, including finding out how such events have gone in other towns. “How does this fit into Franklin’s reputation of being family friendly? I have serious reservations about this expenditure of tax funds.”

Minutes of the TDA meeting show that $14,800 was approved for marketing and promoting the event.

Linda Harbuck doesn’t own a smart-phone herself, but that doesn’t stop the veteran Macon County tourism official from understanding and touting the potential benefits of a new phone app being developed to steer tourists through the westernmost tip of the state.

“This is where things seems to be going,” said Harbuck, who has been the executive director of the Franklin Area Chamber of Commerce for 21 years. “So we voted ‘yes’ to buy in and make sure we would be represented.”

The concept spearheaded by the regional tourism and marketing group Smoky Mountain Host is to promote local events and attractions through a smart-phone app. Individual businesses will be able to buy in, too.

Tourism entities in Haywood, Jackson, Macon, Swain, Graham, Cherokee have at least verbally committed to the concept. It costs tourism groups $11,000 to be included in the phone app. In return, they get to select 10 “story points,” Harbuck explained. These are fairly general story ideas, such as waterfalls visitors can go see, museums to visit, the history of gem mining, for example. There will be a minute or two of video, plus photos and links.

The app will be called “UGO Tour NC Mountains,” and is being developed by Story Point Media of Asheville.

Jon Menick, president of Story Point, got the idea after moving to Western North Carolina from Los Angeles, where he worked in television and some in the filmmaking industry. Menick said he quickly fell in love with the far-western counties, but soon realized how difficult it could be for newcomers to find easy and good sources information.

“It was very unsatisfactory,” he said of his early tour efforts. “I knew a travel app would work, because that is quickly becoming the way to travel.”

So what about those dead spots for cell phone users? No problem, Menick responded — the app is designed so that visitors can preplan their trips to the area, which includes downloading the information as desired. That means the information can be available even where cell-phone reception isn’t available.

The plan is for the state Department of Transportation to put the app on its list of some 2.5 million people, who will be notified that they can download the smart-phone enhancement.

The app should be available to visitors by the end of this summer, Menick said.

How much the phone app costs to develop was not available at press time. In addition to the buy-in fee paid by tourism entities, Smoky Mountain Host got a $10,000 grant from Blue Ridge National Heritage Area for development of the app. Along with county tourism agencies and chambers of commerce, individual tourism-based businesses can buy a place in the app as well.

Less than a year after opening a new visitor center in downtown Waynesville, the Haywood County Chamber of Commerce learned last week that its funding for the site is on the chopping block by the Haywood County Tourism Development Authority.

The county tourism agency plans to open its own visitor center downtown and end its subsidy for the one run by the chamber.

The tourism agency is better positioned to operate a one-stop shop for tourists looking for things to do and see in the county, according to TDA Director Lynn Collins.

“Our sole purpose in life is to market Harwood County as a destination,” Collins said.

It makes sense for the TDA, which is in charge of branding and marketing the county, to run its own visitor center for tourists to provide a seamless message rather than contract the role out to the chamber.

“This is a good time for us to take control of our program and tell our story the way we want to tell it,” Collins said.

The chamber received $30,000 from the TDA to run a visitor center. Losing that revenue will not be easy and could mean the loss of staff, according to CeCe Hipps, the Haywood chamber’s executive director.

“Anytime an organization gets that big of a budget cut, we will have to look at how we do our day-to-day operations,” Hipps said.

The chamber says it will not shut down its visitor center, however, despite the loss of funding. A visitor center is still central to the chamber’s mission, Hipps said.

“Chambers are considered a trusted and established source of information,” Hipps said. “Regardless of the outcome of this we will maintain our visibility and maintain our visitor center. Nothing will change for us from that aspect.”

The result: two visitor centers less than three blocks apart in downtown Waynesville.

The turn of events comes as the Tourism Development Authority grapples with budget shortfalls of its own. The TDA raises money with a 4 percent tax on overnight lodging, bringing in close to $1 million a year. That money is pumped back into tourism promotions, from national advertising campaigns to mini-grants for local festivals.

As tourism has dropped with the recession, however, the TDA has seen its budget shrink by more than $200,000 in three years. This year alone, the TDA has come up $115,000 short of what it anticipated, leaving the agency struggling to make mid-year budget cuts.

“We didn’t just wake up one morning and say ‘Let’s go take the chamber’s funding away from it.’ There is a quite a bit of planning and pros and cons and up and down that when into this,” said Ken Stahl, TDA finance chair.

However, the chamber learned only last week that its visitor center funding is in jeopardy with the start of the new fiscal year come July. Such short notice will make it hard to adjust, Hipps said.

Key members of the chamber board and TDA board met last week to discuss the issue. Ron Leatherwood, the incoming president of the chamber board, said the TDA might be willing to phase out the visitor center funding over two years rather than doing it all at once. That would certainly soften the blow, he said.

The visitor center funding is more than 10 percent of the chamber’s annual budget, and it will be a challenge to make up the difference, Leatherwood said.

But Leatherwood said he understands why the TDA, which is in the tourism business after all, wants its own visitor center. If they can serve the number of visitors they hope to — 40,000 a year — it will surely be a good thing for the county, Leatherwood said.

“Hopefully it will be successful for all of us. A rising tide lifts all boats,” Leatherwood said.

A full-service visitor center

The TDA envisions a full-service visitor center, where tourists will be awed by an endless list of things to do in Haywood County, from crafts to fly-fishing to motorcycle rides. Not to mention a clearinghouse for all the special events going on any given weekend, something that doesn’t exist now.

“We hope to achieve a little bit of synergism here,” said Stahl.

And since the TDA lives and breathes tourism, it can best disseminate that information, Collins said.

“We have a very good handle on what is going on in the county,” Collins said.

Collins also wants their visitor center to be open seven days a week, compared to the chamber’s visitor center, which is only open on weekdays.

The TDA is negotiating a lease to house the visitor center and its administrative offices in a storefront on Main Street across from Mast General store — in the thick of the downtown action. It’s a better spot for snagging foot traffic than the chamber’s location, Stahl said.

Stahl hopes a new visitor center will catch 40,000 visitors a year compared to the 6,000 seen at the chamber’s visitor center.

“When the foot traffic is in the thousands up there on Main Street, it is an opportunity for us to reach out and touch a lot more people than what we have been for essentially the same amount of money,” Stahl said.

The chamber’s visitor center is past the courthouse in a historic home a block beyond the main shopping district. To Hipps, the location is ideal: at the corner where Russ Avenue, a main corridor into downtown, feeds into Main Street.

The chamber just moved into the building last June. It had been without a permanent home for much of the past decade, bopping from one location to another every few years. A visible spot for the visitor center was the top consideration in the quest for a permanent site.

“That was our main driver. We wanted to have a gateway into the downtown area,” Hipps said.

The chamber’s physical quarters are impressive and inviting. The stately historic brick home has a wide front porch decked out in rocking chairs. The lobby has a grand double staircase and features include hardwood floors and black-and-white checked bathroom tiles. Its interior décor is appointed with comfy sofas and lush ferns. The front lawn is crowned by stately oaks with views down Main Street.

“We wanted something that would give people a really good first impression,” Hipps said.

The chamber made a sizeable investment when signing a three-year lease on the building.

Hipps said tourists quickly make themselves at home there.

“Finding the perfect home for a visitor center was so key. Had we known this a year ago we probably would have looked at other options,” Hipps said.

Move in the cards

Until now, the TDA has been holed up in an obscure county office building carrying out a mostly administrative role. Few in the county could tell you where the agency was headquartered, despite its very showy mission of broadcasting Haywood’s tourism accolades to the world.

Despite a sweetheart deal — the county charged the TDA only $250 a month in rent — the TDA had been contemplating a move to new offices for a couple of years.

But it was spurred recently into action by a massive reshuffling of county office space — one that might leave the TDA with no home at all.

Most of the occupants housed in the same office building as TDA are moving to an abandoned Wal-Mart being remodeled for various county departments. The project was motivated by the need to replace the antiquated quarters of the Department of Social Services but has led to musical chairs for other county offices as well.

The county hasn’t decided yet whether TDA can stay where it is, whether it might give the space to different county departments, or whether it will sell the building.

While it’s not certain TDA will get the boot, it was enough to get the TDA’s attention.

“They have not said definitively we have to move any certain time. Their exact words from the county manager were it would be prudent for you to start looking,” Collins said.

It seemed like a good time to pull the trigger on something they wanted to do anyway.

“We don’t want to wait until the music stops and not have a chair,” Stahl said.

If the TDA is going to fork out substantially more in rent, it will cut into its already tight budget. To make it work financially, the TDA will take visitor center funding away from the chamber to cover the rent, bringing visitor enter operations in-house in the process.

“If we are going to move we want to move into something that totally completes our mission,” said Alice Aumen, chair of the TDA board.

Part of that mission is to bring the TDA to the next level as an agency.

Since the TDA’s creation 25 years ago, it has funded visitor centers run by both the Haywood chamber and Maggie Valley chamber.

While it made sense for the TDA to outsource visitor center operations in its infancy — in the early days it had no staff of its own let alone an office — it has grown into a major marketing force for tourism and needs to take a leading role in serving tourists once they arrive.

There’s another advantage to running its own visitor center: to advance marketing research, Collins said. Currently, TDA staff responsible for marketing the county don’t interface directly with the traveling public on a daily basis. Collins wants to survey visitors and find out what brought them here, where they are from, how much they are spending, who’s in the traveling party, and what they like to do.

“It helps us get to know our visitors better. We can conduct all kinds of market research to build our marketing program appropriately,” Collins said. “If you don’t have research you are flying by the seat of your pants.”

The days of shotgun advertising is over, said Aumen.

“This is a huge opportunity for us to do research on who the actual visitor is,” Aumen said.

Plus, TDA can capture the email addresses of visitors, which are worth their weight in gold for direct marketing through social media like Facebook.

While the TDA is in the business of luring visitors to the county, there’s still an advantage to engaging those who are already here.

“Even though they are already here, we can get information in their hands that would make them want to extend their stay or come back for a visit at another point in the year,” Collins said.

Fulfilling a mission

Before moving in to its new office last year, the chamber invited the TDA to share the space. The two entities could run a joint visitor center and share overhead expenses, Hipps suggested.

Talk of co-locating the chamber and TDA have surfaced on and off over the years, but this marked the first formal invitation to the TDA to move in together.

“We wanted to continue and strengthen our partnership and to continue to work together and collaborate,” Hipps said.

Hipps said the two entities have the same common goal, namely “to promote Haywood County.”

It’s common for chambers of commerce and county tourism agencies to share offices and staff while maintaining separate budgets. It’s done in Asheville to the east and Jackson County to the west.

But co-locating with the chamber did not fit the TDA’s mission.

While tourism is the TDA’s only focus, the chamber recruits new businesses, promotes commerce, supports entrepreneurs and engages in economic development.

“A visitor center is not their primary mission,” Stahl said.

But Hipps said tourism is integral to the county’s economy, and thus integral to the chamber’s mission.

“Our model has always been everyone in this county is connected to tourism,” Hipps said. “We can’t dissect and separate the chamber from tourism.”

That said, the chamber’s visitor center does serve as a point of contact for people moving to Haywood County, buying a second home, relocating their business, starting a new business — all of whom may have started out as just a tourist at one time.

“We are so connected with the big picture that the overall economic impact is much greater than the numbers for foot traffic that comes through the door,” Hipps said. “Our business model is all inclusive.”

The chamber’s visitor center is critical a point of contact for business inquiries, said Leatherwood. You never know when a “lone eagle” will stroll into the visitor center, for example. That term refers to a mobile professional who can do their job online from anywhere and may be seeking a new place to move, Leatherwood said.

A county of many visitor centers

The visitor center run by the Haywood Chamber is one of four funded by the TDA.

“We are probably the only TDA in the state that funds four visitor centers,” Stahl said.

One in Maggie Valley run by the Maggie Valley Chamber of Commerce gets $30,000 a year from the TDA. The other two — one at the highway rest area in Balsam and one off the interstate in Canton — are staffed by the TDA at a cost of $25,000 each.

The Canton visitor center was opened only three years ago, but tourist traffic there has not panned out. A cinderblock car wash beside a gas station was converted into a visitor center.

Faced with a budget shortfall last spring, the TDA shut the Canton visitor center for six weeks. Traffic had fallen sharply anyway due to a rockslide that shut down I-40. But even once I-40 opened again, numbers remained low. In the fall, hours were scaled back, and in January it was shut completely. The TDA plans to turn it over to volunteers with the Canton merchant association.

The visitor centers in Maggie Valley and at Balsam draw higher numbers of visitors (see chart). Neither is on the chopping block for now.

The TDA will continue funding the visitor centers that perform better, but could not justify funding those that saw such a small number of visitors, Stahl said.

Hipps said the chamber is grateful for TDA support all these years and believes the two entities will continue to work together.

“We have a very successful business model here. TDA has been a part of that success by helping to fund that part of what we do,” Hipps said.

Maggie Valley is in the midst of a makeover. The town is taking steps to spruce itself up, modernize and, just maybe, attract a few new visitors and investors.

Last month, the town’s aldermen voted unanimously to accept a set of aesthetic standards that proponents hope will change the face of the town, giving it a look dubbed ‘mountain vernacular’ that will nestle a little more naturally into its mountain home.

The standards will go into effect Jan. 16 for new buildings and property renovations. The changes have been over two years in the making.

Maggie Valley Planning Director Nathan Clark said the reaction in the community has been mostly positive. They were already moving towards the look the town finally decided on, anyway.

“A lot of the vision for this type of mountain vernacular style of design is kind of present all throughout the valley already,” Clark said. “A lot of people already have it in some way.”

While the town created committees to define what, exactly, entails “mountain vernacular,” it’s hard to craft a quick description that captures the look. It’s part rustic, part bungalow-esque, part down-home polish, and even the town’s own literature on the matter classes it as beyond definition.

“Mountain vernacular is not a style of architecture,” Clark told aldermen in a presentation at the meeting. “It cannot be defined in simple terms or achieved by following a certain set of strict design requirements. Mountain vernacular is as much of a process as it is an end product.”

He gave the Maggie Valley Police Department as a prime example of the style.

Clark maintains, though, that not having a set list of criteria to go by is actually a better way to approach design standards because it allows for consideration of every case on its own merits. He told the board that the idea was “ballparks, not bull’s-eyes.” They’ve got a design primer that will answer basic questions, but the larger questions will be settled by a review with the town’s planning department, a session with the newly-created appearance commission and a final look from the board of aldermen.

Overall, response to the new standards was positive. There was some vocal objection to such an intrusion by government into private-sector affairs, but Mayor Roger McElroy defended the measures as necessary for a town that desperately wants to see growth and renewal.

“If we’re going to have people come in here and spend substantial money building a place when they know that someone can come in and build something very inappropriate right next door, they’re not going to do it,” said McElroy.

And that’s what Maggie Valley has been searching for in earnest in its post-Ghost Town era: a way to get people interested and keep them that way.

The new aesthetic standards are only one front in Maggie’s battle against its own decay. Earlier this fall, the town and local business owners dropped thousands of daffodil and tulip bulbs into the frozen ground, hoping that when they spring up next spring, the waves of color undulating down Soco Road will entrance the droves of tourists that haven’t yet been snared by the town’s other charms.

Clayton Davis, long-time horticulture agent for Haywood County and 50-year valley resident, pitched the idea of year-round color to the aldermen a few months ago.

Here’s the idea: plant a variety of foolproof flowers that blossom in separate seasons throughout the town, the result being that, with a little money and a little effort, you get a town full of color all year long. And a built-in tourist attraction.

“The idea is to start in the spring with the daffodils blooming and the tulips to have a constant flow of color of either flowers or foliage,” explained Davis, who got the idea from a visit to Summerville, S.C., decades ago.

“Everybody planted azaleas, and in the month of April it was just gorgeous,” Davis said. “And i thought we could do something like that with color.”

The three- to five-year plan involves knockout roses, which bloom from early summer to the first frost, followed by nandina and holly to brighten up the winter months.

Davis said he’s  been “pleasantly surprised” by the keen interest from business owners who are happy to bury anything in their yards that will bring flocks of tourists their way.

Davis said he went for plants that are more or less one-time care species, sort-of a plant-and-forget campaign.

“We want plants that are what we call bulletproof,” Davis said, explaining that daffodils and tulips are some of the best species for the job.

“They grow wild in Europe,” David said, “ and I’ve seen them back at my old home place in Swain County where I lived as a boy where they were planted over 70 years ago. And even though the houses are gone and the trees are overgrown, they’re still growing there.

“Annuals have a definite place in the landscaping, but you have to plant them every year. But perennials, both bulbs and shrubs, if you plant them now, they’ll come back.”

And that’s the goal with both the plants and the planning standards: make Maggie Valley a place people want to visit and return to.

Planning Director Clark concedes that these tactics are quite the departure from the traditional way of doing things in the valley, but he believes it’s worth it to revitalize the flagging town.

“This is a very drastic change in the way things have been done in Maggie valley throughout history,” Clark said. “It’s time to re-assert ourselves and our place as a destination regionally.”

For decades Maggie Valley and Dillsboro were two of the mountain’s most iconic tourist towns. Sadly, both relied heavily — too heavily — on a single cash-cow. When Ghost Town shut down in Maggie and the Great Smoky Mountains Railroad pulled out of Dillsboro, both lost tens of thousands of visitors once delivered to their doorsteps. Both towns are now struggling to find new identities.

• No longer resigned to handouts from Ghost Town, Maggie searches for its own identity

• With the train gone, Dillsboro searches for new ways to attract tourists