Positively Cleveland feels impact of weak economy
Positively Cleveland eliminated three positions Tuesday, reducing its staff to 36 full-time and four part-time employees, but the bigger issue is why those layoffs occurred. The region’s convention and visitors bureau so far is receiving fewer dollars in bed tax money — a 4.5% tax on hotel room charges — than in 2008, said Dennis Roche, president. There also have been talks of diverting Positively Cleveland’s share of bed tax money to Chicago-based Merchandise Mart Properties Inc., operator of the planned convention center and medical mart. That money would be used to market the Cleveland facility, although Mr. Roche said he isn’t sure what that figure may be.
He stressed, however, that Positively Cleveland is working closely with MMPI to figure out ways to effectively and collaboratively market the facility.
“They’re focused on marketing the facility, but you have to connect the facility and its visitors with the (Cleveland) destination and experience,” Mr. Roche said.
Last year, the bed tax generated about $13.3 million; $7.4 million went to Positively Cleveland, though $1.4 million of that amount was used to pay down debt associated with Quicken Loans Arena, and about $1 million was allocated to other community organizations for their marketing efforts.
That left Positively Cleveland with about $5.6 million for its operations.
Positively Cleveland so far is down about 9%, or about $700,000.
State tourism budget faces dramatic cut
The convention and visitor bureau’s marketing abilities also are threatened because of a proposed astronomical reduction in the state’s tourism budget.
The state budget proposal calls for the Ohio Tourism Division’s travel and tourism marketing budget to be slashed from $8.3 million to $400,000, said Tamera Brown, vice president of marketing for Positively Cleveland.
“Leaving the Ohio Tourism Division with $400,000 and no marketing budget would have an almost immediate negative impact on the state’s hospitality industry at a time when convention and visitors bureaus are already facing the challenges of declining business travel and more conservative leisure tourism,” according to a statement issued by Positively Cleveland.
The state’s current tourism budget allocates $1.5 million for operations. The proposal cuts that amount to $400,000. The current budget also channels $6.8 million for state advertising here and throughout other states. The proposed budget calls for the advertising to be eliminated.
Ms. Brown said she is worried about the larger impact on state tourism spending if the budget is slashed as proposed.
Mr. Roche referenced another case in which a state slashed its tourism budget, and suffered economically because of that decision.
Colorado in 1993 eliminated its $12 million tourism and promotion budget, he said. The state’s domestic market share plummeted 30% in two years.
“It’s a telling example that if a state can’t attract visitors with all the great amenities it offers, it’s not a difficult conclusion to reach on how important it is to market the state as a whole,” Mr. Roche said.
|
|
Subscribe
Print
E-mail