Tourism budget reflects decrease in overall operating costs

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July 1, 2009

Larry Penkava The Randolph Guide Wed Jul 01, 2009, 06:23 PM EDT

ASHEBORO — A higher occupancy tax means more advertising dollars in the Randolph County Tourism Development Authority budget for 2009-2010.

The TDA board of directors adopted the $513,000 budget last week, which Tourism Director Tammy O’Kelley described as “hunkering down.”

She said that even with the 2 percent increase in the room and occupancy tax approved by the county commissioners, the budget reflects a slight decrease in operating costs.

“Even with the additional 2 percent, we’ve scaled back,” she told the board. Plans to add a full-time employee were also trimmed to a part-time position. That and cuts in operating expenses frees more of the revenues for marketing.

The budget compares to the current year’s total expenditures of $369,300.

But with a weak economy, O’Kelley said the budget was prepared with the expectation of an approximate 15 percent drop in hotel occupancy. The room and occupancy tax is the TDA’s primary source of revenue.

O’Kelley said the budget “holds the line on operating costs (in order to) market as much as we can.”

In other business, the board:

n Was told the TDA will likely move to its new offices at the old courthouse by the end of the year.

Other offices being prepared at the historic site include the Randolph County Economic Development Corporation and possibly the local office of Congressman Howard Coble.

O’Kelley said county building inspectors have been doing the remodeling work during a period when the slow economy has limited their usual work.

“They’ve done a fantastic job,” she said.

The TDA suite, she said, will have three offices, with shared kitchen, restrooms and meeting room. Storage space will be downstairs.

“We’ll be paying rent but it’ll probably be more affordable than now,” O’Kelley said. “It’s a county building so they’re going to take care of it, and it’ll be very secure. We’re really excited about it.”

n Received the monthly financial report from Will Massie, finance officer for the TDA.

He said April occupancy was down by 5 percent but expressed confidence that even if revenues were down by 10 percent the last two months of the fiscal year the TDA would make budget.

O’Kelley said officials at Fairfield Inn & Suites had reported “remarkably good” business in May. She said other hotels had been well-booked for an aquatic tournament and high school graduations.

n Learned that group tours have already equalled those of last year.

O’Kelley said there were just 10 group tours last year. So far this year, 10 leisure groups, including 375 people, have been to Randolph County and 100 of them spent the night.

Four more groups are scheduled for the summer. O’Kelley said the economic impact to the local economy of the 10 groups is estimated at $67,500.

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