Branson juggles tourism data

Branson relies on its tourism industry more than any other for economic survival.

The city brings in more than $12 million a year from its 1-cent tourism tax, levied on the city's hotels, motels and tourist attractions. The city's 1-cent general sales tax brings in another $10 million annually.

So when the tourism industry softens, or at least doesn't grow - as seems to be the case in 2009 - it can be cause for concern.

Tourism tax revenues through May are down 6.2 percent, meaning just less than $2.5 million was spent by visitors in March considering the tax's two-month lag time from when the state Department of Revenue cuts a check to the city.

Myer Hotels Vice President of Marketing Chris Myer said Branson is still outperforming the rest of the country. He noted that visitor numbers at his five hotels - Best Western and Comfort Inn properties - are comparable to last year.

"In talking to other hoteliers around the country, I've heard people are down 20 (percent) to 40 percent on the East and West coasts, and nationwide the average is down around 15 percent," Myer said. "So when I hear all of those figures, I feel like we're doing pretty darn good."

City impact?

A decrease in tourism tax revenue is significant because the city has come to expect growth from the tourism tax fund; the total hasn't dropped compared to the previous year since 2005, and 2008's total of roughly $12.4 million is up almost 19 percent in three years.

But City Administrator Dean Kruithof said the city is not in as bad of shape as the numbers might indicate. He said the city's budget for fiscal 2009 - which ends Sept. 30 - anticipated a decrease in tourism tax revenue. In fact, it was based on revenues being flat compared to 2007, he said.

"We were looking at concerns about lower tourism numbers nationwide," Kruithof said. "We expected a downturn, so from a budgeting standpoint, we're in good shape. We're watching our expenditures and making sure our expense and revenues match, and we're doing OK with that."

In fact, sales tax - the single largest source of revenue for the city, making up about 30 percent of total income - is up roughly 2 percent through June. An additional 24 percent of city income comes from the city's 1 percent tourism tax.

"If we do see any downturns, we have expenditures we can hold back, but I don't think we're looking at that right now," Kruithof said.

The average tourist

Dan Lennon, marketing director for the Branson/Lakes Area Chamber of Commerce and Convention & Visitors Bureau, said visitors this year have spent 5 percent more than last year through April, according to CVB surveys of area attractions and lodging.

However, 2008 tourism sales were down nearly 4 percent compared to 2007, Lennon said.

The main reason for growth in 2009 is, ironically, the economy: Tighter budgets have forced people to take shorter trips, according to Lennon.

Visitation from Branson's primary markets - those between 100 and 300 miles away - is up 30 percent, while visitation from markets farther than 300 miles is down 8 percent.

"We're perceived to be an affordable destination, and we also have people in those primary markets that maybe in the past have been traveling farther away - Orlando or Chicago or California - that are staying closer to home," Lennon said, adding that nearly 27 percent of visitors to the area so far in 2009 are first-timers, up from 15 percent in the same period last year.

Average visitors also seem to be older this year, averaging 59 years of age compared to 55 last year, which Lennon chalks up to more retirees and empty nesters not as harshly impacted by the economic downturn.

Finishing 2009

Myer said it's always hard to predictwhat the rest of the year holds - but thetask is even more difficult this yearbecause visitors aren't planning as far in advance.

"There are more last-minute reservations, and that makes it harder to plan but it also looks like you're doing worse," he said. "What that does is creates a little uneasiness for the whole industry."

While no one is predicting a major turnaround this year, City Administrator Kruithof remains hopeful that the remainder of 2009 will at least hold steady, preventing the need for any significant budget withholdings.

"What we're seeing is a lot of people taking new calls to the city and inquiries about places to stay, so we're cautiously optimistic about an uptick, especially as consumer confidence continues to increase," Kruithof said, referring to CVB figures that show inquiries through April are up more than 110 percent from the same time last year. "Our next reporting period will cover May, and that will give us a better idea about the high season."

Lennon offers a similar view. He noted that estimates from groups such as Travel Industry of America anticipate yearly visitor numbers for tourist destinations across the country ranging from flat to down about 2 percent.

"We anticipate being flat in terms of visitors, but a modest increase in revenues because of prices," he said. "If we can hold our own this year and wait for the economy to revive, that would be a good outcome for us."[[In-content Ad]]