Cautious optimism rules in Branson

Branson city leaders are sticking with the old adage, "Hope for the best and prepare for the worst," as a mixture of positive and negative indicators color the view for multiple business sectors in the tri-lakes region.

Branson's sales tax revenue was up 4.6 percent to $10.1 million in fiscal 2008, while the city's tourism tax - levied on hotels, attractions, theaters and restaurants - was up 5.8 percent to $12.5 million.

But Jerry Adams, the city's public information director, said the outlook for this fiscal year is decidedly less chipper.

"We're on a tight budget," he said. "We're holding back on some capital improvements and only doing projects that have been budgeted already," including an extension of Fall Creek Road, improvements at the intersection of Forsythe Road and Roark Valley Road, and a new bridge over Lake Taneycomo.

The city of Branson's budget for fiscal year 2009 is $46.7 million, and tax revenues so far this year seem to back up Adams' expectations that more belt-tightening will come.

Sales tax through February 2009 is up just 1.2 percent from the previous year at $4.6 million, while tourism tax through January is down a whopping 7 percent to $4.5 million.

Despite the city's conservative plans, the Branson business community continues to build.

Adams said that while he wouldn't categorize the city's building industry as robust - especially compared to the construction records set in 2005 and 2006 - there are several significant projects under way.

Among them is a $4 million addition to the Branson Heart Center, run by a group of private physicians, on West Highway 76; a $1.9 million infill project at the Veterans' Administration clinic on Gretna Road; a $500,000 office building for HCW Development on Payne Stewart Drive; a $755,000 facility for First Community Bank on Highway 248; and $150,000 of remodeling work to the Branson Lakes Area Chamber of Commerce offices, expected to be complete by the end of April.

The biggest construction project in the area, by far, is the $155 million privately owned Branson Airport, slated to open in early May.

Two direct destinations - Atlanta and Milwaukee - already have been announced and will be available through Florida-based AirTran Airways.

Airport organizers say they expect 250,000 passengers annually to use the airport, which can accommodate planes ranging from small regional jets to a Boeing 767.

On tap at the Branson airport will be Famous Dave's BBQ Restaurants, to be run by franchisee Cutchall Management Co., which operates the Famous Dave's at Branson Landing.

The Branson Convention and Visitors Bureau also is banking on the drawing power of Ozark Mountain Spring, a three-month series of more than 40 events throughout the city. Events under the OMS banner include Silver Dollar City's annual WorldFest, the Walmart-sponsored FLW Outdoors bass fishing tournament on Table Rock Lake, and the first Great American Pie Show hosted by NBC weatherman Al Roker.

Bookings are strong at the Branson Convention Center downtown. Bill Tirone, the center's director of sales and marketing, told the Branson Board of Aldermen Feb. 12 that the center already has 183 event days on the books for 2009, putting the center well on pace to meet last year's total of 252 event days.

Tirone said the one possible area of weakness could be overall attendance numbers for those conventions; companies that in previous years sent three or four employees to an event may only send one or two this year.

The reason for the convention center's relative strength, Tirone said, is its list of clients.

"We don't get a lot of the big financial groups ... that have been in the spotlight for canceling their events," Tirone said.

"Most of the businesses we see here are state and regional and national associations, and by their charters they have to hold their conventions, because it's usually their major source of revenue for the year," he added.

He added that only two groups have canceled this year; one rescheduled for 2010, and the other has indicated it will rebook its event for later this year, though he declined to name the groups.Freelance reporter M. Camille Dautrich contributed to this story.