|
We are reaching out with urgency to help protect the tourism economy in Hamilton County. Mayor Weston Wamp’s proposed FY2024 budget includes a reduction in the Chattanooga Tourism Co. funding that will go into effect July 1, 2023.The budget reduction presents significant negative impacts on our industry and the community’s ability to attract people who will spend money at your restaurants, hotels, retail stores, entertainment venues, attractions, and more.
Here is what we need your help with:
- Contact the Hamilton County Commissioners and encourage them to vote “No” to any reductions to the Tourism Co. budget and express your concerns about the potential negative impact on our local economy. Contact information for the Hamilton County Commissioners is listed at the bottom of this email.
- Attend the Hamilton County Commission meeting on Wednesday, June 21, 2023, at 9:30 A.M. to show your support during this critical time. The meeting will be held at the Hamilton County Courthouse in the Commission Assembly Room on the fourth floor. Please arrive early to allow time for parking and passing through security.
BACKGROUND
On June 7, the Mayor notified the Chattanooga Tourism Co. about his proposal to reduce Tourism Co. funding that we estimate would be an 18.4% reduction in the organization’s budgeted revenues, totaling $1,908,000. This was only two weeks prior to the June 21 Commission meeting where the budget will be presented for approval. The FY2024 budget will go into effect July 1, 2023.
The Mayor proposed redirecting those lodging tax funds for Camp Jordan improvements. We agree improvements are warranted, although we recommend a county-wide opportunity and needs assessment for multi-purpose sports facilities as stated in our 2023/24 strategic plan.
The Tourism Co.’s Board of Directors agrees with Mayor Wamp’s desire to modify the Tourism Co.’s current funding model by including new investments from the City of Chattanooga. However, we adamantly disagree with how this process was presented and structured. The two-week notice before the budget vote did not allow for proper time to respond.
This reduction will adversely affect the Tourism Co.’s ability to attract people who spend money in our restaurants, hotels, retail, and entertainment businesses.
NEGATIVE IMPACT OF BUDGET REDUCTION
The following is a representation of several current events and programs that we are actively pursuing. We cannot commit to these without the ability to fulfill our current and future financial commitments.
EVENTS
TSSAA Championships: High School State Football and Women’s Soccer
- These are 2-year commitments (2023 – 2024)
- Contracts have been negotiated but not yet fully executed.
- Total investment required: $600,000
Ironman 70.3 and Ironman (full distance)
- This is a 3-year commitment (2024 – 2026)
- We are currently negotiating the contract.
- Total investment required: $1,035,000
World Rally Championship
- This is a 3-year commitment (2024 – 2026)
- We are currently negotiating the contract.
- Total investment required: $3,000,000
The total estimated economic impact of these events for Hamilton County exceeds $108,000,000 in lost revenue.
CULTURAL TOURISM ADVANCEMENT GRANT
The Cultural Tourism Advancement Grant launched three years ago to support tourism-related projects that drive visitor demand and enhance the visitor experience in Hamilton County. In the first two years (2021–2022), a total of$1,063,000 was awarded to 42 different organizations. The 2023 awards are scheduled to be announced at the end of this month to 40 organizations with awards totaling more than $500,000.
The following are a few of the past recipients:
- Association for Visual Arts
- Bessie Smith Cultural Center
- Chattanooga Theatre Centre
- Creative Discovery Museum
- Ed Johnson Project
- Friends of the Festival
- Hunter Museum of American Art
- National Medal of Honor Heritage Ctr.
- Pop Up Project
- Sculpture Fields
- Songbirds Foundation
- SoundCorps
- Tennessee Valley Railroad Museum
Approving the proposed budget will eliminate this program.
ARP FUNDING FROM THE TENNESSEE DEPT. OF TOURIST DEVELOPMENT
The Tennessee Department of Tourist Development (TDTD) awarded $2,666,565 in American Rescue Plan (ARP) Funds to the Chattanooga Tourism Co. to be invested between 2023 and 2027.
A provision was included stating these funds “are not intended to replace regularly budgeted items.” It further states that “Organizations that allow a tourism budget cut throughout the life of this program will no longer be eligible for their Tennessee Tourism & Hospitality Recovery Fund award.”
– Commissioner Mark Ezell, Tennessee Department of Tourist Development
We will no longer be eligible for the $2,666,565 in revenues for economic development if we experience budget cuts.
This is not merely a matter of budgetary adjustments; it is about safeguarding Hamilton County’s economic future, maintaining vibrant quality of place, and continuing our collective mission to make Hamilton County a premier destination for visitors and residents.
If you have questions or would like additional information, please feel free to contact anyone listed below.
Hugh Morrow
Board Chair, Chattanooga Tourism Co.
Chairman, TN Tourism Committee
President, Ruby Falls
Barry White
President, Chattanooga Tourism Co.
|