GILROY
– The city’s tourism arm has reported a 13 percent decrease in
revenue from the nine percent tax hotels collect when guests pay
for their rooms.
GILROY – The city’s tourism arm has reported a 13 percent decrease in revenue from the nine percent tax hotels collect when guests pay for their rooms.
In an annual report to City Council this month, Kirsten Carr of the Gilroy Visitor’s Bureau said hotel tax revenue dropped from $876,000 in fiscal year 2001-02 to $760,000 in fiscal year 2002-03, a $116,000 plunge.
Last year was the first full fiscal year in which hotel tax revenue in Gilroy has declined, Carr said.
Although this year’s official figures won’t be available for another month, Carr said hotel tax revenues seem to be leveling off. Carr expects hotel tax revenue for fiscal year 2003-04 to roughly equal the amount generated in 2002-03.
“What’s happening in Gilroy mirrors what’s happening all over California,” Carr said.
Specifically, Carr said tourism in Monterey and San Jose has dwindled over the past couple of years. This makes it hard on Gilroy since a lot of vacationers opt to make the garlic town their cheaper and more available home base when they vacation in those spots.
Hotel tax is crucial to cities since it is the only tax cities do not have to share with county, state of federal branches of government. Although the amount of money generated by the hotel tax is nominal when compared to sales tax or property tax revenue, every little bit helps in tight economic times.
To offset future hotel tax losses, Carr said the Visitor’s Bureau is trying to recruit new events that would lure tourists to stay the night in Gilroy.
Already, the bureau has been in talks with the Clear Channel corporation which puts on barbecue festivals called “Rib America.” Thus far, the festivals have not been put on west of Indiana, Carr said.
“Gilroy was incredibly attractive to them,” Carr said.
Carr said the Visitor’s Bureau is looking at the possibility of launching an annual arts and wine festival. The event could be marketed regionally and statewide, Carr said, drawing visitors that would tend to stay overnight.
Similarly, a downtown food fair is being talked about. The event, possibly called “A Taste of Downtown,” would feature samplings of food from all restaurants within the Monterey Street area.
Carr also told City Council that Gilroy needs to host more sporting tournaments at its parks because the events run all day and keep people in town.
