LOCAL CVB CHAIR ANNOUNCES NEW TAX INCREASES, TO BE MORE COMPETETIVE???

[AQUAMAN]

Yes, your local Convention and Visitors Bureau, chaired by Barry Neal, today announced that renters of motels/hotels/rooming of any sort, will pay a 5% special tax assessment for the privilege of coming to Ludington starting April 1st, tomorrow....lol. This new tax is "in the spirit of making Ludington more competetive", via having more advertising dollars? Call me silly again, but doesn't anyone think this new increase for renting will sour the tourists more than entice them to come here? Most that come here have been for a long time, with family, friends, and business associates. Making their already shrunken down pocketbook monies shrink even more in value, well, doesn't ring true to being more competitive at all. Mr. Neal calmly reflected this is only about a $3 increase? When's the last time you could rent a motel for $60/nite during July or August? Never! His arithmetic and ideas aren't what I would call constructive and viable for these economic times, but, have we seen anything from City Leaders of late that does make sense when it comes to fees and taxation???

[Guidothesemipsuedocaptitalistpig]

I always travel to place that give me more bang for the buck really. And Ludington has always bordered on the high side. Inflated even more during tourist season. When has Mr Neal found a room for $60 a night in the summer? Also reflect that those like himself that can afford more high end accommodations rarely would find Ludington a large enough destination. I base this on actually speaking to many who cruise in and out of our marinas on the way to larger attractions.

That being said I have actually heard them say Ludington is already rather high for the few attractions in the area. Whether 5% would be enough to tip the scales for them is irrelevant. It does in fact tip the scales for many of us who would have relatives who would visit in the summers if it were not for the inflated rates in the summer.

[XLFD]

Here's the LDN's e-article on this tax:

 Jennifer Lynn  Thursday, March 31, 2011

It may cost a little more to rent a room in Mason County soon, but it’s all in the spirit of making the Ludington area more competitive with other areas when it comes to marketing, Ludington Area Convention & Visitors Bureau Board of Directors Chair Barry Neal said.
Starting Friday, all reservations for short-term rentals will be subject to an assessment fee of 5 percent. For walk-in rentals, those who come to a lodging establishment without a reservation, the rate increase will take effect May 1.
Any reservations made before April 1, regardless of when they are for, will be assessed at the current 2 percent fee.
The assessment fee will go to the Ludington Area Convention & Visitors Bureau, to be used to market the Ludington area.
On average, that means the fee will be less than $3 per night, Neal said.
“It enables us as a community to market the Ludington area in a much more effective, measurable way,” Neal said.

 

The hard copy has more detail.  Let it be noted that Barry Neal is a member of the Ludington DDA, an outfit whose excesses and ethical shortcomings have come under scrutiny here in the Development of Authority pt. 1-5.  As an example of what this money might be used for, he noted the various DDA sponsored events, ones that have been shown to use loads of local taxmoney while the revenues and proceeds go to private individuals, many associated with the DDA directly. 

I find it hard to believe that the local lodging facilities passed this referendum.  The article notes that even (former)County Commissioner Joe Lenius (as the owner of Nader's) voted against this.  A 5% increase on lodging costs for an undefined 'Ludington marketing project' managed by the ethically-challenged DDA is not going to help the local lodging facilities more than it harms them.  Where's the accountability going to be with this money?  None is mentioned in the article.

Coupled with the prospect of $4 plus gas this summer, look for lodging room occupancies to decrease significantly, and don't be surprised if some lodgers bail out of the area.

[Dave]

When I travel, I don't like paying any more then I have too for a room.... specially if I know I will not be in the room all that much. If I am going to a concert or sporting event somewhere, I will usually find a cheap (not a dirt cheap no tell motel... just a cheap name brand motel) place to stay. I just can't see paying $75 for a room I wont be in most of the time... a $35 or $40 room is enough for me. If I am going somewhere and know I will be in the room a good part of the day, I don't mind paying a little more. Most years when I am on vacation during the winter or early spring, I will usually go to Traverse City for a few days and get a room somewhere down on the bay that has a jacuzzi... I don't mind spending the extra $$$ because I know I am going to be taking it easy, probably kickin back in the jacuzzi.

I would suspect most people visiting Ludington are not going to be in their room much as they are here to enjoy the outdoors stuff.

[AQUAMAN]

Dittos to that Dave, but if you want a jacuzzi room in Ludington, overlooking the pierheads for instance, plan on about $400/nite, that comes to an extra $20/nite tax, but, if you can afford that, I suppose $20 is nothing but a tip anyhow......lol.

[easymoney]

Wow, does anyone in the area have some dirt acrerage I could rent for the summer months? A few porta potty's and a couple of shower stalls and , magic, a camp grounds .Any interested investors in Lud.? sounds like a profitable venture to me.(altho, starting a new venture, in todays economy ,is out of the question)

The people of mason co. have given up a beautiful area to the few ,who tend to make money off of the tourist industry. Can a local area resident still afford to live there? Just asking??

I had hopes of moving back to Ludington at some time, but, found  that about 10 years ago I couldn't afford too,, if this keeps up I may not be able to afford visiting.

[Sweater Cows!]

I noticed whe we were traveling to orlando that hotela in that area had a "resort fee". i wonder if that is the same things as what the ludington rental owners are dealing with.

[AQUAMAN]

Good point Sheila, and if I'm not mistaken, I do believe the "resort fee/tax" in most areas get earmarked specifically for special disbursements, that of advertising mostly, in one form or another. This is the accountability factor that's real important here, and X has duly pointed out. Without the specific accounting of funds taxed, funds spent, it leaves a wide gap for divvying up the funds anyway the CVB chooses, now doesn't it?  And more "administrative fees" as the main expenditure, well, it aint getting it done for me, nice disguise, but a sure miss on the transparency charts.

[Sweater Cows!]

What I am not understanding  (am I reading it correctly?) is that it says the CVB made the 'tax', why does the CVB have any authority to create taxes for businesses? or did I read something wrong?

 

I thought the CVB was just a group that people could join if they so choose but not that the CVB has any administrative power to create new fees.

 

Can someone explain please?

[AQUAMAN]

Beats me too Sheila, I thought they were in charge of growing Ludington in the Convention and Tourism market, to attract more to come here for leisure and business meetings alike. Guess we should all be a little confused about this scenario of taxing authority. Wouldn't surprise me if they exceeded their authority on this too, but that's a wild guess from left field, although, common sense should prevail, imho. Like I said earlier, I never heard of any voting of the privately affected businesses on this matter, no meetings to get feedback, no nothing. Just a startling announcement of what is to be, no arguments or debate wanted. And who's heard of any conventions being held in Ludington of lately, like any groups or businesses of name and fame? I certainly haven't, and isn't that their purpose?

[XLFD]

The CVB is just another progressive tool of the government to join forces with businesses to enrich the free enterprise system in an area, just like the DDA does.  Nice intentions, with the unintended outcomes of damaging the actual business environment in the long run.  We have no conventions of note being held in Ludington, and if we let the visitors be greeted by government-run entities like the DDA and CVB, they will think Ludington is all about FNL, the NYE ball, Oktoberfest, etc., while there is so much more that makes Ludington so successful, and has made it a desired destination all along, with its visitors. 

[XLFD]

I thought this was rather odd too, that they had such authority, but they do have such, according to this state law:  

Act 395 of 1980

Today's paper had the final vote tally and claimed there was such authority via a state law and with a little looking I found it.  Section 3 of this act indicates that a marketing program (plan) is to be presented before such a vote by transient lodging owners takes place  ((3) "The marketing program notice shall describe the marketing program to be implemented by the bureau with the assessment revenues...").   

But today's paper admits that no such plan has been developed as of yet and one will be developed by the month's end.  Having the lodging owners vote on an assessment for an undefined marketing program, could effectively nullify the measure-- if we as a society hold any value in the word of law.

The LDN showed it has a touch of integrity in the story when it noted the "assessment" which CVB director Amy Seng declared wasn't a tax, actually fit the description according to Webster.  The law makes the connection a bit clear in its definition. 

[Willy]

The fee is only collected if an establishment is a member of CVB. But it is a fee that may come back to bite them.