Centre County, US (TAN): Commissioners of Centre County, located in the US state of Pennsylvania, recently voted to raise hotel tax from 2.5 per cent to 5 per cent, signalling the intent to give a boost to the local tourism economy.
The Central Pennsylvania Convention and Visitors Bureau hosted the commissioners to discuss how the organisation plans to use the increased levy. The extra 2.5 per cent is projected to generate about USD 4 million in new revenue during the first year and 500 new jobs over a longer period.
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The higher rate takes effect April 1.
“One of the responsibilities we have (as commissioners) is to encourage, support and strengthen our community,” board chairman Michael Pipe was quoted by the Centre Daily as saying. “The innovative approach we’re going to be taking with these additional funds is going to be really special to watch.”
Bulk of the revenue — about 80 per cent — will be spent on increased sales and marketing efforts to attract more visitors to the county. This includes a revamped website and rebranding project, which will begin on July 1.
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“We’ve learned that the name Central Pennsylvania Convention and Visitors Bureau (CPCVB) just doesn’t seem to resonate with people outside of this region,” Smith added.
Most of the remaining funds will be channeled into CPCVB’s grant programme, which will now allow nonprofit and for-profit organizations to apply for help promoting their events. In 2017-18, CPCVB gave out USD 504,214 to 39 organizations — including the Central Pennsylvania Festival of the Arts, Central PA 4th Fest and Centre County Grange Fair.
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Commissioner Mark Higgins hopes that with extra funds, there will be more events like the arts festival, and that some others can continue to grow and attract more people, like the Central PA Theatre and Dance Festival, which debuted last summer.
Hoteliers were largely supportive of the tax, which is collected from the visitors and guests who stay at their establishments. It’s based on the room rates set by hotels.
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