Event funding being phased out

Those attending a meeting Monday night regarding the funding provided to special events from Hot Springs Travel and Tourism learned those funds will be reduced by 25 percent each of the forthcoming fiscal years. This means the funding will be completely gone by the summer of 2021.

Travel and Tourism Director Amanda Moeller, who headed the meeting along with board members Troy Dorman and Kevin Skates, said they recently received the lodging study done by Young Strategies, Inc. She explained they wanted to know how the town’s doing with lodging, looking at information such as who is staying here and how long they’re staying. The study was conducted from November through February, Moeller said.

Looking at the information, Moeller noted there has been no change in rooms available and no new motels since the Quality Inn was built in 1995. While the national occupancy rate has continued to rise since 2011, in Hot Springs County the rate rose from 53.3 percent in 2011 to 56 percent in 2012 and 56.9 percent in 2013. However, since then it has been on the decline, with 53.4 percent in 2014, 52.9 percent in 2015, 51.6 percent in 2016 and 49.5 percent in 2017.

Moeller noted the occupancy rate of 60 percent is the “make or break” line, with anything above that mark being great and anything below “not so much.” According to the report, occupancy in the county hits above 60 percent from mid-May through early October. Moeller said this isn’t much of a surprise, as winter months are typically slower.

Though lodging tax dollars have gone up, it is due to rates, which have consistently gone up from 2011 through 2017.

As to how this impacts special events, Moeller pointed out a few points in January through April of 2017 — such as the wrestling tournament and President’s Day weekend — where occupancy was over 60 percent. Looking at events during the summer months, there is not much of an impact on occupancy. ”What they found,” Moeller said, “is that we’re not really drawing more people to Thermopolis. We’re giving them more to do when they’re here.”

Moeller clarified that she is not saying the events don’t bring people to town. As summer comes to a close, the occupancy trend goes back on the decline, dropping below the 60 percent line in early October.

Skates pointed out this trend is just with regard to lodging, not the money spent at local businesses when people come for events.

Moeller also noted a leadership survey was also sent out and among the top things survey takers reported were that people needed more to do here and a better experience with what we have here.

Hot Springs Travel and Tourism, also known as the Lodging Tax Board has made some substantial budget changes through a two-hour work session, and Moeller said one of the comments from the lodging study was that things needed to be fixed as continued increased rates without raising the product level was not sustainable. Moeller said this does impact events, as people are likely to not come back for an event if they’ve had a bad experience at a hotel or other business.

“What it boils down to,” Moeller said, “is we are moving toward some civic pride projects,” doing more community things to increase the visitor experience, and special event funding will be phased out by 25 percent over the next couple years. “Whatever you got last year, it will be 25 percent less this year, then next year and the next year.”

Moeller said they will still advertise the events through the digital billboards and radio spots, but individual event funding will eventually go away. She noted Travel and Tourism will hopefully be able to assist with any new funding sources and market research. They are also hoping to foster some partnerships, possibly combining events around similar dates under one banner.

Skates said he doesn’t think the lodging tax dollars have been spent right. As there is a lot of potential for tourism in the county, his idea was to put all of the money to television ads showing what can be done here and schedule specific event ads for around the time they are happening. He further added these events are important and he knows the difficulty of having an event and making money off it while also affording advertising. The funding from Travel and Tourism, he said, is being phased out slowly to allow time to seek out other funding sources.

Moeller pointed out they are not accepting any new applications for funding, and those heading currently funded events will not have to re-apply for funds in the next few years.

Fire Chief Mark Collins expressed concern that there is more focus being put on events that bring people to stay overnight and less on events that bring people for a single day, such as the annual fireworks show, that still bring people to town. Skates said such events are helpful to the community because they generate dollars, but Travel and Tourism is about getting “heads in beds” and getting closer to the 60 percent occupancy year-round.

Thermopolis-Hot Springs Chamber of Commerce Executive Director Meri Ann Rush said it’s really good those heading events took the time to get the information, and asked whether similar meetings were planned with hoteliers and others who need the information. She added implementing the information is the next step and it would be good to have “all the players at the table.” Moeller said Monday’s meeting was the first meeting, to see how things go.

In addition to the regular money awards presented for events, Moeller also included a letter of explanation for event boards and a list of what events will receive in the coming years.

The lodging study is available upon request by emailing tourism@thermopolis.com.