TAX NEWS - 2010

Georgia Tax: Dalton hikes hotel tax

Dalton has voted to increase the hotel / motel tax in a bid to use the money to attract more weekend visitors.

DALTON, GA. -- Dalton and Whitfield County are aiming to attract more weekend tourists with a 1 percent hotel/motel sales tax increase.

Approved last week by the Dalton City Council, and already given the OK by the Georgia Legislature, the money is predicted to add about $300,000 annually to the Dalton Area Convention and Visitors Bureau budget. The tax now stands at 7 percent and is applied to each hotel guest's bill.

Leaders say that money will be used to market the North Georgia county to weekend tourists, conventions and sports teams.

"Our hope is that it will continue to broaden our reach of the meetings market," said Brett Huske, CVB executive director. "We want to attract cheerleading groups, beauty pageants, police and fire groups."

Close to Interstate 75, just a short drive from Chattanooga, Atlanta and Birmingham and in the midst of natural hills and recreation, Dalton is a good spot for weekend gatherings, Mr. Huske said. Already, the city is finding appeal among athletic groups.

"On the sports side we've got two phenomenal softball fields; we've just added some new tennis courts, and there are increasing opportunities for soccer," Mr. Huske said.

Later this month, the Northwest Georgia Trade and Convention Center will host a major religious convention.

Those groups -- a few hundred to more than 1,000 people -- bring dollars to Dalton. Chattanooga convention officials, for example, say some 250-person family reunions spread $135,000 into the local economy.

The impact isn't just found in hotel rooms and convention set-up fees. Convention officials count the meals, drinks, gas and other purchases as contributing to the local economy.

Because of that, even in bad economic times, the sales tax increase was mostly supported, Mr. Huske said.

"I think adding to our tourism industry brings in a little bit of diversity," Mr. Huske said. "I think that the passage of this tax indicates everyone's support for what we're doing."

Over the last 10 years, Dalton's hotel business has shifted from being at full occupancy during the week and empty on the weekend to being thick with tourists on the weekends, too.

"Gradually we've changed, and weekend travel is still an area that has a lot of potential," said Harvey Neal, general manager for LaQuinta Inn.

The state laws that allowed Dalton and Whitfield County to raise the tax also required that all of the increase be used by a designated tourism-related entity. In this case it's the CVB.

"There are a lot of costs and labor in getting some of the things we want to do off the ground and running," Mr. Huske said. "That funding will come in handy for marketing, bid fees and sales. That's where the money will go."

Tourism officials, in addition to spreading the word about what's in Dalton, will also plan events that entice tourists to come early and stay longer.

Among the ideas being floated is a multiweek summer concert series.

"We could tell people, if you're coming into town for a Saturday event, why not come on Friday for a free concert," Mr. Huske. "We'd like people to think of Dalton as a place to have fun on Friday."

Hotel operators say they could use some help letting tourists know Dalton is a place they can enjoy on the weekend.

"Weekend tourism will be a growing part of the future," Mr. Neal said. "We'd like them to spend a few nights here, enjoy the downtown and see what Dalton's all about."