Officials: Occupancy fee would help promote city
Posted: Sunday, November 23, 2008
WATERTOWN, S.D. (AP) -- Some city leaders are proposing a hotel occupancy tax that could raise $200,000 more each year for marketing Watertown and increasing visitor spending.
The tax would be administered by a business improvement district.
"This is something we just need to do to be more competitive with other South Dakota cities our size and market our city like we should," said Karen Witt, executive director of the Watertown Convention and Visitors Bureau Inc.
People who run hotels and motels want to see their occupancy increase with overnight stays by gaining more tourism business such as leisure, sporting events and meetings, she said.
"We're really happy with the support from the motels and it's by working together that we make things happen in Watertown," she said.
The proposed tax is a good idea, said Jenna Nig, Holiday Inn Hotel Express & Suites general manager. "If we get people to stay, they'll shop the city, too," she said.
Aberdeen, Custer, Deadwood, Chamberlain/Oacoma, Rapid City and Spearfish already have business improvement districts, the Watertown Public Opinion reported.
"I know because of our other properties in Aberdeen that it's working well for them," Nig said.
Witt said her agency receives 38 percent, or $220,000, from the existing bed, board and booze tax. Another $200,000 a year through a $2 hotel occupancy tax would provide Witt's bureau with $420,000.
The tax would be charged to hotel visitors. The city would gather the funds, which would be administered by the Convention and Visitors Bureau under the direction of the business improvement district board.
"So this is just another mechanism that we can use to market our city," Witt said.
A Dec. 15 hearing has been set on the question of whether the Watertown City Council should adopt a resolution establishing a business improvement district.
The tax would be administered by a business improvement district.
"This is something we just need to do to be more competitive with other South Dakota cities our size and market our city like we should," said Karen Witt, executive director of the Watertown Convention and Visitors Bureau Inc.
People who run hotels and motels want to see their occupancy increase with overnight stays by gaining more tourism business such as leisure, sporting events and meetings, she said.
"We're really happy with the support from the motels and it's by working together that we make things happen in Watertown," she said.
The proposed tax is a good idea, said Jenna Nig, Holiday Inn Hotel Express & Suites general manager. "If we get people to stay, they'll shop the city, too," she said.
Aberdeen, Custer, Deadwood, Chamberlain/Oacoma, Rapid City and Spearfish already have business improvement districts, the Watertown Public Opinion reported.
"I know because of our other properties in Aberdeen that it's working well for them," Nig said.
Witt said her agency receives 38 percent, or $220,000, from the existing bed, board and booze tax. Another $200,000 a year through a $2 hotel occupancy tax would provide Witt's bureau with $420,000.
The tax would be charged to hotel visitors. The city would gather the funds, which would be administered by the Convention and Visitors Bureau under the direction of the business improvement district board.
"So this is just another mechanism that we can use to market our city," Witt said.
A Dec. 15 hearing has been set on the question of whether the Watertown City Council should adopt a resolution establishing a business improvement district.
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