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Santa Barbara is looking to approve a Santa Barbara Tourism Business Improvement District to generate $1.8 million in marketing and advertising dollars. Hotels would pay between 50 cents to $2 per occupied room, per night.

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Santa Barbara headed toward tourism district

By JOSHUA MOLINA -- July 28, 2010

Santa Barbara on Tuesday moved a step closer to approving a new hotel tax aimed at generating up to $1.8 million to market and advertise the American Riviera.

If the city approves the Santa Barbara Tourism Business Improvement District, hotel owners would be charged between 50 cents-to-$2 per occupied room, per night.

The city’s lodging industry is pushing for the assessment. Nearly 60 percent of the hotel and motel owners have signed a petition in support of the new charge.

“We are way behind the times,” said Matthew La Vine, general manager of Fess Parker’s DoubleTree Resort. “If we think we can rest on our laurels and the Santa Barbara name, we are sorely mistaken. Marketing dollars are essential to bring people to this city.”

Several hotel executives spoke in support of the proposal at Tuesday’s City Council meeting. They say that Santa Barbara competes with other popular California destinations and even though people may know the city’s name, they might not know all of the city’s tourism offerings.

“The bottom line is do we need more tourism in our community?” said Kathy Janega-Dykes, president and CEO of the Santa Barbara Conference & Visitors Bureau and Film Commission. “Fewer visitors, means fewer taxes and fewer businesses. People have been laid off.  Salaries have been reduced. We all know that tourism is the economic generator for the city. We do need more tourism and the TBID is the solution.”

The city of Santa Barbara would collect three percent of the total assessment. The council is set to take a final vote on the new tax in September.

Although a majority of the lodging companies support the district, not everyone is thrilled with the idea. Scott Perry, general manager of the Lemon Tree Inn and the Orange Tree Inn, said it is unfair to force him and other smaller motels to participate in the tax.

“As a privately owned, independent motel I would like to voluntarily participate in advertising,” Perry said. “I really don’t want to have my customers forced to pay a surtax.

Perry questions the necessity of the tax, particularly since hotel guests are already required to pay a 12 percent hotel bed tax to stay in Santa Barbara.

“Santa Barbara is a pretty well-known place,” Perry said. “Everywhere I travel in the world, and mention Santa Barbara, people know exactly what it is. We really don’t need to compete with Modesto.”

He is asking that only hotels with150 rooms and more be forced to participate.

“It is obscenely unfair for the small independent hotel/motel properties in the city to be the only ones saddled with ever-growing tourism taxes,” Perry said, in a letter to the council.

Still, a majority of hotel operators remain in support.

“In the current tourism climate, we demand that destinations be marketed, not just individual properties,” said Laura McIver, general manager of the Canary Hotel. “It is very important that this TBID get passed.”

 

Comment on this article

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Huh? : 7/28/2010

The City is ALREADY SPENDING $1 MILLION a year to promote and advertise the City, even though I don't know exactly how the 1 Mil is spent or who is getting a salary to manage this... Now we are asking tourists to pay for all the "Creek Geeks" that are on the City's payroll , and in addition, ANOTHER tax for advertising- Where does it end? Santa Barbara is not the "Tourist Destination" it used to be, don't kid yourself.


Bad decision : 7/28/2010

Unfortunately this is another example of a Council getting caught up in the rhetoric of government speak and doing the "best(?)" for business. There is the Chamber of Commerce and trade associations. It is not and should not be the business of government to force participation and taxation upon businesses.
This stems from the unfortunate creation of Downtown Organization by government and often it becomes a tool of government when it should not be. Trying to limit the heavy hand of government by keeping it is to 150 rooms or larger is like asking do you want a broken arm or leg?
This needs to stop. Will it? Not as long as the voters continue to vote in tax and spend representatives.

Still tired


Taxes : 7/28/2010

Can't the hotel association or the Chamber do this without the City?

Why?


downtown : 7/28/2010

I'm a local who generally avoids downtown. Monday I went downtown to do a little shopping. It was a good reminder why I avoid the area. Parking is a pain, panhandlers everywhere, and many parts of the area smelled of urine. The tourism group may want to consider improving on those issues. Most of my friends and family visiting on repeat visits what to avoid the area too.

grossed out


So Right : 7/28/2010

"grossed out", you are so right on this one. All the money spent advertising won't change the real problem, Santa Barbara is considered a "dirty" city. A good friend recently visited and stayed at a hotel across form Pershing Park, and even though he had lived here 15 years ago, he said never seen such a filthy city. Until SB deals with the Hobo's and Vagrants that have taken over downtown and the Harbor they will continue to lose tourist revenue. If they need an example then they should look to Berkeley, that city has the toughest homeless laws in the state.

CManSB


Bring 'em here... : 7/28/2010

Not the Tourists, the bums...Numerous jurisdictions that HAD homeless (bum/vargrant) problems have solved them by sending them to Santa Barbara via Greyhound Bus vouchers.
Once they are here, in Bum Paradise, they get all the meals they'd like, a choice of Casa Esparanza, Resue Mission, Salvation Army,Beach camping or vouchers that the City obtained for cheap hotels on upper State St. If they wait long enough, they can get on Helene Schnieder's "Chronic Homeless Housing List" and get a condo on Castillo and Carrillo, Garden St or the new soon to be opened at Cota or De La Guerra St.
Just think of the revenue if we could tax the bums... Forget the tourists, they are on the way out.


no more taxes : 7/28/2010

I bet adding yet another tax is going to have a negative on hotels occupancy.
Also interesting to see the owner run hotels not in favor of the tax --

taxpayer


Masters of Perception : 7/28/2010

Santa Barbara in some ways is like the city of Bell. Insiders
taking a whole lotta money with naive residents just whistling
and skipping along. Kathy Janega Dykes at the Conference and
Vistors Bureau and Steve Cushman at the Santa Barbara Chamber
make huge salaries with big smiles on their faces. They know most
of you are suckers to their quarterly hype and business leaders
awards at their members expense. They both oversee fat city
contracts at the expense of you the hard working taxpayer and now
they want the small hotel owner to pay an additional tax? You chumps
will pay it because you're too scared or lazy or "too busy" to demand a full accounting of both
these organizations books. As for Cushman his game is sweeter;hide behind the title that the chamber is a non
profit thus bigger tax write offs and more money in his pocket. But no new marketing
or high profile awareness where the chamber is spending ITS money to promote this city!
Wake up Santa Barbara and demand that these check cashers be terminated!!!

Sarah L.


Self assessed tax : 7/29/2010

This is the first part of the city budget reduction. Why wouldn't the city agree to all the hoteliers creating their own fund for tourism? Next step the city will reduce the funding to the CVB because the CVB will have theiir own fund to spend. Instead they should ask the city to match or double the fund created by this TBID. It is easy to ask the tourist to pay additional tax on top of the measure B 2% TOT to clean up creek, and you know the creek is not any cleaner the money is just used to pay salaries of the city creek clean up expert.

Jamie


self assessed tax? : 7/29/2010

The hotels will just collect the tax from the tourist but you know people are not coming to SB because the city fail to clean up the homeless and gang problems and not to mention all the construction and traffic around 101. Unfortunately the hotels that agree to this TBID during the slower season will have to pay this self assesed tax because they will have to reduce the room rates to attract guest.

Jay


SB : 7/29/2010

I think SB has the prowess never to advertise again.

poster:


Information and Education : 7/30/2010

Just some info that should be circulated. Up to 13% of city revenue is generated by tourism. Without the tourism dollar we would have severe negative impacts on education, parks, police, and fire departments. Most areas that have significant tourism have or are creating TBIDs. This includes Monterey, San Diego, San Franciso, Napa, Sacramento and the list goes on. We are in competition with these other areas for dollars spent in California. The assessment is paid by the hotel guest not local citizens. We live here because it is beautiful, that is why others vacation here. If you don't like people, move to where people won't visit like Needles or Blythe. Nothing against either place, just somewhere I wouldn't think to vacation.

Concerned


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