The question ‘which way to Cherokee?’ continues bedeviling the state transportation department, which has been caught in a tug-of-war between Jackson County and Maggie Valley over who deserves a sign pointing the “right” way to Cherokee.

Maggie Valley currently holds title to the sole directional sign pointing motorists to Cherokee via U.S. 19 and over Soco Gap — and would like to keep it that way.

“We are all for helping promote Jackson County, but not at the expense of Maggie Valley,” said Maggie Valley Mayor Ron DeSimone.

The N.C. Department of Transportation is “leaning toward” posting a sign indicating that there are in fact two routes to Cherokee — one through Maggie and one that continues on past Sylva.

But by posting another sign, the department of transportation would “take away from one and give to another,” said Alderman Mike Matthews. “There has not been enough information to say you should go this way versus this way.”

Jackson County officials, meanwhile, have lobbied for the second sign, pointing out that the four-lane highway going past Sylva is actually safer and more user friendly than the route through Maggie. The tribe has expressed a desire for a second sign.

“They feel like the two-lane road over Soco is hazardous,” said Reuben Moore, a DOT official who works in the regional office in Sylva.

But DeSimone questioned Jackson’s true motive.

“Obviously, Jackson County did not bring this up because they were concerned for public welfare,” DeSimone said.

Maggie Valley could win out, however, as the DOT has yet to find a place to put the new sign and has not settled on concise wording.

Safety and travel time

Moore updated the Maggie Valley Board of Aldermen on the status of the sign issue at a town meeting last week.

If the DOT decides to allow a new sign, it would be placed by May before the beginning of the tourist season.

But, posting a new sign faces several obstacles, including where to place it.

“It takes about a mile of signage to properly sign an exit,” Moore said. But the roadside leading up to the Maggie exit is already cluttered with signage.

DOT has not settled on the appearance of the sign. It cannot simply put two dueling arrows on a sign pointing this way or that way to Cherokee.

“That is strictly against policy,” Moore said.

The DOT has discussed making a sign with the words Cherokee spanning the top half of the sign and the mileage for both routes below it: U.S. 74 at 37 miles and U.S. 19 at 24 miles.

Although the route through Maggie is shorter distance-wise, a study by the DOT showed that travel time was essentially the same — about 35 minutes — no matter which road was taken.

“We found that the travel time was very nearly the same,” Moore said.

Initially, Moore wanted the sign to specify that the travel time was about the same no matter which route is taken, but DOT vetoed the idea because traffic or accidents could delay travel along one of the roads.

The department only test-drove the routes three times during the late fall and winter. The times do not account for increased traffic during the summer and early fall months when tourists flood the area. Get stuck behind a slow moving Winnebago, and the trip through Soco Gap could be a grueling one.

The review of both routes showed that the crash rate on U.S. 19 is 10 percent higher.

Alderman Mike Matthews said that the two roads are incomparable when it comes to wrecks because U.S. 19 runs through a town where cars are often slowing down or speeding up and pulling in or out of parking lots. The U.S. 441 route, however, is a four-lane divided highway.

“I don’t even see how that could be compared,” Matthews said.

Maggie Valley officials said they want “overwhelming, definitive information” showing that the road through Jackson County is safer.

Does DOT consider U.S. 19 to be safe, Matthews asked?

“Absolutely,” Moore responded.

Aldermen Saralyn Price asked Moore pointblank which road would he take if it was snowing and he was in Lake Junaluska.

“I wouldn’t be out,” Moore said.

The Board of Aldermen argued that the DOT has not provided any information that would validate a decision to post a new directional sign.

“I have not heard anything definite about (U.S. 441) being safer,” DeSimone said.

Capturing tourism dollars

Maggie Valley and Jackson County each hope to attract a portion of the 3.5 million people who visit the casino in Cherokee each year.

The idea that Maggie Valley will lose business should an alternative route be posted “presupposes that people are going to do what the signs tell them to do,” Moore said.

Jackson County commissioners haven’t been shy about their desires to funnel tourism traffic through that county. Jackson County Manager Chuck Wooten and the five county commissioners expressed surprise last week that their request for a sign had triggered uproars in Maggie Valley.

As they hammered out possible designs for a new welcome sign at the county line, Commissioner Doug Cody joked that they should add to Jackson County’s fantasy sign: “This is the best route to Cherokee.”

A decision will be made based on safety and the speed of traffic, assured Moore, not based on which route is more scenic or needs more business.

According to Jackson County Travel and Tourism, visitors have said that they prefer to take U.S. 441 to Cherokee. But, Moore said he can’t confirm whether that is true.

The coordinators of the annual Rally in the Valley motorcycle event have strapped Maggie Valley leaders a seemingly impossible ultimatum that could leave the town in straits no matter what they decide.

Rally in the Valley coordinators asked the town to bar any other motorcycle festivals from coming to town the week before or after its September rally in hopes of ensuring a bigger draw for its own event. If the town didn’t comply, Rally in the Valley would be no more.

The town dutifully responded by asking Maggie’s other big motorcycle event of the fall, Thunder in the Smokies, traditionally held the weekend before Rally in the Valley, to move dates.

But, Rally in the Valley then upped its demand. If Maggie wants to keep the Rally in the Valley, it can be the only motorcycle festival held there during the entire fall.

“The Town of Maggie Valley has always welcomed The Carolina Harley-Davidson Dealers Association and their customers to Maggie Valley,” said Sandy Owens, a spokeswoman for the association that puts on Rally in the Valley, in an email. “We are hoping that we can come to an agreement with the town that will allow us to move forward with future successful fall rallies.”

Owens declined to comment further.

And with that, the town found itself between a rock and a hard place: it will lose Rally in the Valley if town officials do not meet the terms, but it will lose Thunder in the Smokies if it does.

The town has a long standing agreement with the company that hosts Thunder in the Smokies, which puts on a May rally in addition to its one in September.

Handlebar Corral Production has run Thunder in the Smokies in Maggie for nine years, and has said it will stop holding both its fall and spring event if the town sides with Rally in the Valley.

Chris Anthony, owner of Handlebar Corral Production, said it would be “practical” to pull out of both commitments — its fall and spring Thunder in the Smokies events.

However, should Rally in the Valley leave Maggie, Thunder in the Smokies has indicated that it would like the rally’s spot on the third weekend in September.

Fat lady yet to sing

Negotiations between Maggie Valley and the Carolina Harley-Davidson Dealers Association will not concluded “anytime soon,” said Mayor Ron DeSimone.

DeSimone said that the town has done its best to convince the Harley-Davidson Association to continue hosting its annual Rally in the Valley motorcycle event in Maggie. The town has offered to keep the 2012 event schedule status quo while proposing that the 2013 schedule could be negotiated.

“Balls in their court,” said DeSimone, who spoke at a public meeting on the issue last Wednesday.

The association is expected to make a decision in the next month, and it’s unclear whether it will choose to stop holding the motorcycle rally in Maggie if it doesn’t get exclusive booking or it will continue as it has for 12 years.

There is still a chance that the association will move forward with the event again this coming year, DeSimone said.

“It’s not a done deal yet,” he said.

Discussions at a recent public meeting lasted no more than 20 minutes and focused mostly on whether dates could be retroactively changed should the association pull its event from Maggie’s roster.

However, one resident spoke up about his concern about losing any motorcycle events.

“I want to impress upon you how much money the motorcycles bring to this battle,” said Maggie resident James Carver, who owns Maggie Valley Restaurant. “Save those motorcycles.”

Maggie Valley boosts four motorcycling events each year: Rally in the Valley in the fall, RoadRUNNER Touring Weekend in the summer and Thunder in the Smokies’ fall and spring events.

Each event brings a crowd into the valley — people who will spend their money at Maggie’s shops and sleep in its hotels. And, like many Western North Carolina towns, much of Maggie Valley’s income is based around tourism.

By hosting large-scale events at its fairgrounds, Maggie aims to attract more visitors and money to the town. The loss of one event such as Rally in the Valley would further wound Maggie’s already hurting economy.

“It (Rally in the Valley) brings a lot of business to the town,” said Audrey Hager, Maggie’s festival director. “Also, it’s a big fundraiser for the chamber so that hurts as well.”

The town is still trying to figure out how much impact each event has on the local economy.

The Harley-Davidson Association, which runs Rally in the Valley, has complained that attendance and revenues are down, Hager said. The association has lost “substantial money” during the last few years, she said.

“They cannot sustain the losses they’ve had the last three years,” Hager said.

Without competition from other motorcycle events, the rally would likely see a rise in attendees and profits.

As for Thunder in the Smokies, Anthony admitted that the money generated from running such an event is not always great but said a big factor in attendance is the weather.

“If the weather is good, our crowd is good,” Anthony said. “When I say good, not great.”

Anthony said he did not know how much the events impacted Maggie.

“We don’t really know what the total is that we’re bringing to Maggie Valley,” Anthony said.

Neither event organizer has disclosed their attendance numbers to the town. The numbers would help quantify each event’s impact on Maggie.

After several years without a full-time promoter, the Maggie Valley Chamber of Commerce plans to bring back an executive director to help the valley rebound from a recession fraught with business closures.

“We need that presence,” said Teresa Smith, president of the Maggie Valley Chamber of Commerce. “There has been a little bit of a loss with not having someone work there full-time.”

Four years ago, former chamber director Lynn Collins left to become the executive director of the Haywood County Tourism Development Authority. After her departure, the Maggie Valley chamber chose to save money by not hiring a replacement.

“We decided to try to act without an executive director to try to put some money in the bank,” Smith said.

Instead, Smith took on some of the directorial duties until the chamber finances turned around.

“We are operating now on a positive note,” Smith said.

The chamber will not have to foot the entire salary for the new director on its own, however. The Haywood County Tourism Development Authority last month approved a $15,000 allocation to the Maggie Valley Chamber of Commerce to cover part of the new director’s salary.

The committee charged with filling the director position has not yet decided on a salary for the position, said Jan Pressley, head of the search committee. The remainder of the salary cost will come out of the chamber’s general budget.

The Maggie Valley Chamber of Commerce has a $150,000 budget this year — a sharp decline from the $300,000 budget it had in 2007. The decrease is due in part to a drop in chamber membership among businesses.

This year, the chamber has about 170 members, down from 220 members five years ago. The decline in membership is due largely to the economy.

“A lot of the businesses have gone out of business,” said Jena Sowers, the visitor’s center manager for the Maggie Valley Chamber.

Restaurants, attractions and performance venues have closed their doors. And, of course, a large number of Realtors and contractors have left the housing trade, Sowers said.

“It was sad because when we would get the letters from them dropping out, they said if they ever go back in business they would rejoin,” Sowers said.

The loss of members made it difficult to afford the executive director salary — even though the recession was perhaps the time when the business community in Maggie needed a full-time leader the most.

The chamber has also been hurting from a loss of funding from the tourism authority, which it once relied on heavily.

The tourism authority subsidized basic operations and overhead of the chamber and visitor center to the tune of $64,000 a year, compared to only $29,000 a year now.

That number is inching back up with the recently-approved $15,000 earmark from the tourism authority to help cover the director’s salary. The funding will come out of a special pot of room tax dollars designated for tourism promotion in Maggie Valley.

The face of Maggie businesses

The chamber has received seven applications for the executive director position, and the search committee expects to hire someone in January.

The director will oversee marketing, the daily business of the visitor’s center, work with other entities, including town officials and the lodging association, and be present at various meetings.

Because she also runs the Maggie Valley Inn and Conference Center, Smith could only devote some of her time to the chamber whereas a full-time director can focus all of his or her energy on the job.

“I think the biggest obstacle that I had was being able to be in attendance at a lot of meetings,” Smith said. “I think that just having that presence out there … will be an advantage.”

Like many small towns in the U.S., Maggie Valley has battled business closures, high unemployment and low economic growth during the past several years.

Businesses closed, leaving fewer chamber members and less dues money, which in turn prevented the chamber from hiring a director to help fix those very issues.

The lack of a chamber director also forced the town to pick up some of the slack by hiring a festival coordinator to continue to bring events to Maggie Valley.

Chamber of Commerce members seem to agree that a full-time director could only help Maggie Valley.

“It can’t hurt,” said Dan Mitchell, owner of Laurel Park Inn.

During the past several years, with the closure of the amusement park Ghost Town in the Sky and Soco Gardens Zoo, Maggie Valley has “sort of died,” Mitchell said.

Laurel Park Inn usually closes during the winter but will remain open after a bad business year, he said.

It will take collaboration between business owners to revive Maggie Valley, Mitchell said.

“When you bring (a customer) in, you’re helping the valley,” he said.

Because her business Nutmeg Bakery is relatively new to the area, Brenda Schwartz said she is not sure what the chamber has done in the past but wants to see Maggie Valley expand beyond motorcycle rallies.

“I’d like to see more business development,” Schwartz said. “It needs to be a diverse group.”

Since October last year, at least nine new businesses moved to Maggie Valley. Four qualify as bars. But the new ventures also included a hair salon, an antique shop and grocery store.

Brenda O’Keefe, owner of Joey’s Pancake House, has seen several directors come and go during her business’ more than 40 years.

“I do think we need a director,” O’Keefe said. “I would want them to be out in the community.”

The director should be a regular face around town and in businesses, especially those that are currently struggling, and should hold marketing seminars for its members, she said. Maggie Valley businesses need to work on cultivating a repeat customer base — something that has helped her business through slow times.

“Give people what they want, and they will come,” she said.

The director should also reach out to businesses that are not chamber members, or rather possible future members, and paint a rosier picture of Maggie Valley’s future, O’Keefe said.

Niche marketing and regional cooperation were the reoccurring topics of this year’s Smoky Mountain Host meeting held in Cherokee last week, an annual forum that brings together the major tourism players of the Smoky Mountain region.

“Our greatest customers are our neighbors,” said Mary Jaegar-Gale, general manager of Chimney Rock State Park, during a panel discussion at the stakeholder’s meeting.

Matthew Pegg, head of the Cherokee Chamber of Commerce, agreed that Western North Carolina businesses should work together to attract people who live in the region to be tourists in their own backyards.

“There are a lot of people here who don’t know what we have,” Pegg said.

Throughout the meeting, David Huskins, the head of Smoky Mountain Host, encouraged those in the room to stop competing against each other for tourists and instead band together to help brand the Smokies region as a destination, in turn benefiting all the tourism in the region. By pooling their money for advertising, tourism attractions can get more bang for their buck, Huskins said.

Several panel participants discussed creating a map of activities or an a-la-carte itinerary that helps visitors pick and choose what they want to see and do.

“It is very important to get information into their hands before they plan their trip,” said Ed Phillips, executive director of the Burke County Tourism Development Authority.

An itinerary or regional events are a couple of ways in which businesses, towns and tourism authorities could work together to appeal to niche markets, including fishing and motorcycling.

Cherokee alone hosts six fishing tournaments. But, a regional fishing tour could keep visitors in the area, spending money at local businesses, for three or four days, Pegg said.

Speaker Berkley Young, a tourism marketing specialist, emphasized that towns should focus on their niche experiences to draw in tourists rather than trying to offer something for everyone.

People need to ditch their “build it and they will come” mentality and focus on unique experiences, said Young, president of Young Strategies, a tourism research and strategic planning firm based in Charlotte.

While “uncertain” has been the buzzword used to describe travel and the economy during the past few years, businesses are expected to see moderate, 1 to 3 percent, growth in 2012, Young said, and people have not stopped traveling or spending.

The need to get away will always trump other considerations, such as the price of gas, he said. People are taking shorter trips, closer to home and are participating in fewer but more engaging activities.

By promoting unique opportunities, regions are more likely to draw in those vacationers.

Businesses must also get back to the basics of hospitality.

The first words out of a hotel employee’s mouth should not be ‘Do you have a reservation,” Young said. A simple ‘Welcome! We’re glad you are here’ can improve the experience of a visitor, who is likely tired and annoyed from traveling, and increase the chance that they will return, he said.

Running a small hotel in Western North Carolina isn’t the easiest way to make a living, particularly not in these penny-pinching times when prospective customers want a full range of amenities and a rock-bottom room price.

“It is hard for small businesses like this,” said Sneha Amin, who owns and manages the 22-unit Economy Inn in downtown Sylva. “People are not wanting to spend anything, because they don’t have anything.”

A plan is in the works to increase the tax on overnight lodging in Jackson County from 3 percent to 6 percent, as high as state law allows. The prospect has left Amin and other hotel owners in the area — large and small — on edge, worried that such an increase could further drive away the ever-dwindling number of visitors they depend on for survival.

But proponents say the room tax is needed to offset a decline in tourism revenue in Jackson County.  The increase will mean more money to market Jackson County as a destination, which in turn should increase tourism. That’s something supporters say Jackson County sorely needs as overnight stays are still off by 12 percent in Jackson compared to 2006.

Alleghany County, which is increasing its room tax from 3 to 6 percent this year as well, has experienced similar ups and downs, according to Alleghany County Manager Don Adams. Like Jackson, Alleghany hopes the extra money from the tax increase — which means more money at its disposal for tourism marketing — will turn the tide.

Most of the protests in Jackson County have come from the Cashiers and Glenville area, where posh inns, golf course resorts and B&Bs cater to a well-heeled, but increasingly frugal, crowd.

But the fear of hardship to come via any increase is the same in Sylva. A block or so from the Amin’s hotel at the Blue Ridge Inn, far from the Cashiers area, Pete Patel is equally worried. Patel and his wife have owned and operated the 33-unit hotel for eight years.

“The summer was OK, but the winter is going to be tough,” Patel said, adding that he hopes commissioners won’t move forward with plans to hike the tax.

Those fears might be overstated.

Linda Harbuck, longtime executive director of the Franklin Area Chamber of Commerce, said she hasn’t noticed any particular decline in Franklin’s hotel stays since that town went from a 3 to 6 percent room tax. While Macon County’s base room tax rate is only 3 percent, the town of Franklin tacked on an additional 3 percent in the town limits.

“They seem to do all right,” Harbuck said.

The story is the same in Henderson County, which a year-and-a-half ago raised its room tax from 4 to 5 percent. Karen Baker, spokesperson for the Henderson County Chamber of Commerce, said that the tourism group has not seen a visible decrease in room stays since the increase.

“There are always two sides whenever there is an increase in a tax, but it hasn’t seemed to hurt occupancy,” Baker said.

Hotel owners in Jackson County beg to differ.

Raise the room tax, and it might drive tourists away and cost the county jobs, Amin and the other hotel owners said. Amin said she’s finding it difficult enough to earn the required $8,000 or more each month needed to pay the hotel’s bills.

Larger hotels are also feeling the dour economy’s tight squeeze.

“We hope that our county commissioners will hear our concerns and ease our fears,” said Megan Orr, director of sales for Best Western Plus River Escape Inn & Suites in Dillsboro. “Prospective customers make informed choices and will see and feel the difference of our higher taxes compared to our neighbors.”

How Jackson’s room tax stacks up

Two-thirds of the state has a higher room tax rate than Jackson County. With a tax of only 3 percent, Jackson is one of only 33 counties with a rate that low.

Jackson County leaders are debating whether to take the room tax rate to 6 percent — a rate share by roughly 30 other counties. Here’s some of the other rates in Western North Carolina:

• 3 percent: Jackson, Swain, Macon, Clay, Graham, Mitchell, Yancey

• 4 percent: Haywood, Buncombe, Transylvania, Cherokee

• 5 percent: Henderson, Madison, McDowell

• 6 percent: Town of Franklin, Watauga

The Cashiers Travel and Tourism Authority briefed Jackson County commissioners on some of their marketing campaigns from the year, responding to calls that the agency was too insular.

Mark Jones, a member of the Cashiers tourism board who is also a Jackson County commissioner, gave a presentation on the agency’s advertising for the year, including samples of ads that have been placed in various magazines and travel articles written about Cashiers.

Jones said the Cashiers tourism board plans to get new software that will allow it to share  the names and contact information for prospective tourists with lodging owners and other tourism businesses. When prospective tourists call, email or respond to magazine ads requesting information on visiting Cashiers, the Cashiers tourism agency sends them brochures. A new system will allow the database of names to be made available to those in the tourism industry who may want to follow up with brochures and literature of their own, Jones said.

Jones said the Cashiers tourism agency is more than happy to provide a regular report to the county.

“We truly want transparency,” Jones said.

Sue Bumgarner, the director of the Cashiers Travel and Tourism Association, had not responded to earlier requests by the county to provide a progress report on its tourist promotions. Tourism in Jackson County has taken a hit in the recession, spurring interest at the county level on how to improve marketing.

All the invoices for the Cashiers tourism agency go through the county finance office, and Bumgarner has said she thought those invoices served as adequate reporting to the county on the agency’s activities.

It’s not too late for Jackson County leaders to go back to the drawing board on a state bill that consolidates the county’s two separate tourism agencies.

Commissioners have found themselves in the hot seat over a bill that would do away with the Cashiers Travel and Tourism Association and instead merge it with a single countywide entity. Cashiers tourism leaders have decried the plan. They argue that Cashiers needs its own tourism agency — with its own funding stream — to cater to its own unique visitor demographic apart from the county as a whole.

Those who support a merger believe it would be more effective, eliminating the duplication that currently exists and putting the money to wiser use.

The idea to merge the Cashiers tourism agency with the greater Jackson County Travel and Tourism Association was embedded in a bill to raise the room tax on overnight lodging from 3 to 6 percent. Raising the room tax was the chief objective of the bill and was supported by the majority of commissioners. But the origin of other parts of the bill is murky and has been blamed in part on a legislative mix up.

N.C. Rep. Phil Haire, D-Sylva, appeared before the Jackson County commissioners this week to let them know the bill can be changed if they don’t like it. Haire even took the prerogative to bring a new, marked-up version of the bill that would undo the changes made by the previous bill passed this summer.

That seemed to irk at least one commissioner, who asked Haire why he would bother drafting changes to the bill before commissioners officially decided whether they wanted any changes. Commissioner Doug Cody was confused how the bill had been preemptively rewritten.

“Who is the author of this?” Cody asked Haire of the new version.

Haire said he took the initiative to revise the bill based on feedback he’d gotten. Feedback from whom, Cody wondered.

“I didn’t realize we were doing an opinion survey of what changes we want to see,” Cody said.

“If you don’t like it, we will throw it in the waste paper basket,” Haire said of the new version.

It became clear that in Cody’s eye, Haire had jumped the gun with new language before the majority of commissioners reached a consensus on what to do.

“I think this needs some work,” Cody said.

County Manager Chuck Wooten portrayed it as a miscommunication. Wooten said he passed along the concerns raised at the last commissioners meeting over some aspects of the bill. Haire perhaps thought the concerns were universally shared by the commissioners when in fact the only commissioner vocalizing any concerns has been Commissioner Mark Jones, who works in the Cashiers tourism industry and sits on the Cashiers tourism board.

“I believe Mr. Jones is the only one that spoke up as having these concerns,” said Wooten.

Commissioner Charles Elders said commissioners need to decide collectively how, if at all, the bill that passed should be changed.

“We need to get our thoughts and recommendations together of what we would like to see,” Elders said.

Haire said he intended the new language to simply be a “starting point.”

While commissioners said Haire was premature in penning a new bill, Haire’s point was clear. The bill can be changed — and that lands the ball and all its political repercussions squarely back in the commissioners’ court.

Until now, the county had blamed at least part of the controversy on an unintentional hiccup in the legislative process: the bill that ultimately passed in Raleigh was not what the county initially asked for.

Haire didn’t intentionally set out to introduce and get passed a different bill than what county leaders wanted. The county failed to make its request in time last spring. By the time they asked Haire for a bill to increase the room tax from 3 to 6 percent, the deadline for introducing new bills had passed. So Haire looked around for a similar bill to piggyback on. He found one from Alleghany County, which was also looking to raise its room tax, and tagged Jackson County’s name onto it as well.

But in the process, the language didn’t come out quite right, Haire said.

Commissioners had partly disowned themselves from some of the controversial parts of the bill — instead directing blame at a bureaucratic system of lawmaking.

But, Haire now says it is no problem to change it — putting commissioners on the spot to either stand behind the bill in its current form or tell Haire how they want it changed.

“I hope we can get it the way we eventually want it,” Haire told commissioners helpfully.

Haire did explain that the state’s travel and tourism branch wants to bring uniformity to the myriad of tourism bills for each county in the state, and there is pressure to use similar policies and language, he said.

Commissioners plan to take the issue up in January.

Concerns with the Jackson County room tax bill

Jackson County commissioners plan to increase the tax on overnight lodging from 3 to 6 percent. Doing so requires permission of the N.C. General Assembly. A special bill to increase the tax was passed in Raleigh earlier this year at the county’s request. The language in the bill calls for other changes to the county’s two tourism agencies as well, including:

• Create a single countywide tourism development authority. Currently, there are two — a Jackson County Travel and Tourism Association and a separate Cashiers Travel and Tourism Association. The Cashiers tourism arm currently gets 75 percent of the room tax generated in the Cashiers area to spend on its own marketing.

• Expand how the tourism tax revenue could be spent. Currently, the money generated from the room tax must go solely to tourism marketing and promotions. The new bill would allow money to be spent on “tourism-related activities,” including capital projects. Putting on festivals, building greenways or assisting the Great Smoky Mountains Railroad with the cost of an engine turntable could all be legal uses of the tourism revenue under the new bill.

The Haywood County Tourism Development Authority board backed down from plans to cut grant funding for long-celebrated events such as Folkmoot USA, Downtown Waynesville street dances and Canton’s Labor Day Festival.

The tourism board had been contemplating new grant guidelines for events — cutting off grant funding after four years and capping one-day events to a maximum grant of $1,500. But they reversed course following backlash from event organizers over the proposed changes.

Not all tourism board members wanted the changes in the first place. Mark Clasby, executive director of the county’s Economic Development Commission and a board member, was among those on the tourism board who raised concerns about the repercussions of cutting funding for existing festivals.

The intent was to free up grant money to boost new, up-and-coming festivals. The watered-down guidelines encourage rather than mandate that “new, qualified events” are given priority status.

Established festivals already have strong sponsorships and attendance, and after receiving TDA money for four years, new events should be better able to support themselves, said Marion Hamel, a member of the board from Maggie Valley.

“We didn’t feel like it would be that big of a hardship,” said Hamel, who helped draft the proposed guidelines.

Hamel said four years of grant funding should be adequate.

“It is going to take three years for any new event to get off the ground,” Hamel said.

But, just because an event is longstanding does not mean it’s profitable or no longer needs grant support. The town of Canton doles out $20,000 for music, portable toilets, stages, tents, clean-up crews and law enforcement at its annual Labor Day Festival.

“Ours is a little over a 100 years now. We are going to get it right,” joked Al Matthews, Canton town manager and a board member.

Many of these events depend on TDA funding to help broaden their promotional efforts beyond Western North Carolina. Organizers said they would not be able to continue attracting larger crowds to the popular annual events without the funding, and the loss could force some perennial favorites to shut down.

“You don’t want to penalize somebody who is successful,” said Kay Miller, executive director of the Haywood County Arts Council, who attended the meeting. Miller said International Festival Day would never be able to advertise in publications, such as Southern Living, if it did not receive TDA money.

Most events are run by nonprofits, which are only allowed to keep a certain amount of money in the bank. Any monies left over go back into the nonprofit or are used to promote the event the following year.

“This would be very devastating to some of us,” said Deborah Reed, a member of the tourism board. Reed is also leader within the Canton merchant’s association FOCUS, a nonprofit that puts on the annual Mater Fest.

Board members agreed that new events should be given a chance but disagreed over whether older events should be excluded from the TDA’s funding pool.

“You don’t want to create funding dependent organizations,” agreed Matthews, who also suggested cutting out the proposed guidelines how much money older events can receive.

About $215,000 of the tourism agency’s funds — a quarter of what is collected from the county’s 4 percent tax on overnight lodging — are earmarked this year for special tourism initiatives. The TDA collects more than $850,000 in revenue each year from the county’s 4-percent lodging tax.

Maggie Valley, Canton, Waynesville, Lake Junaluska and Clyde each keep a portion of the tax revenue they generate. The five areas also have their own committee, which divvies up their share of the tourism agency’s funds.

Ken Stahl, the tourism board’s finance chair, said the committees need to try to achieve a balance between giving new events an opportunity to flourish and supporting the events the county is already known for.

“Our prime directive is to get an increase in tourism,” Stahl said.

Each year, the committees sift through applications and make recommendations to the tourism authority, which has final approval in all funding decisions.

The committees have “a very difficult time sometimes,” Hamel said.

“The best things to do would be to clarify (the guidelines),” Hamel said. “This is what we are suggesting.”

Some board members and event coordinators did not know about the proposed changes until they received a call for comment from The Smoky Mountain News for an article prior to the tourism meeting last week.

“It caught me a little off guard,” said Matthews, who noted that he had not seen the changes to the guidelines until he received the board’s meeting agenda.

Although a tamer version of the proposed guidelines was passed, the board could decide to pass stricter standards in the future.

“This subject comes up every two or three years for discussion,” said Lynn Collins, executive director of the Tourism Development Authority.

A failure by the Cashiers Chamber of Commerce and the Cashiers Travel and Tourism Authority to provide county leaders reports on how room-tax dollars are spent led this week to promises of prompt corrective action.

Mark Jones, who serves in a dual role as county commissioner and chairman of the Cashiers Travel and Tourism Authority, said he had not been aware that there had been multiple and ongoing attempts to understand tourism marketing efforts. These are carried out with county funds under the direction of Cashiers Chamber of Commerce Director Sue Bumgarner. Bumgarner also has failed to provide the county with copies of minutes from Cashiers tourism board meetings as requested.

Jones’ concession came, however, after he indicated that he believed adequate information was already available to commissioners from the county’s finance office.

County Finance Officer Darlene Fox “prepares reports every month. Every dollar that goes in and every dollar that goes out,” Jones told the board.

While the bills for the Cashiers tourism agency are filed with the county finance department, it is often not clear from the invoices exactly what it is for, however, with only general references to an ad that ran in an unnamed magazine during an unspecified month or generic “marketing” services.

Chairman Jack Debnam made it evident that he didn’t consider Jones’ suggestion to simply rely on the finance office a satisfying one. Debnam indicated that he wants direct answers from the people with their hands down in the money pot.

“I’ve requested copy of minutes, since January, and information from (Bumgarner) and received nothing,” Debnam said.

Debnam said that the Jackson County Tourism and Travel Authority, by contrast, has provided him information and minutes of board meetings.

“I apologize,” Jones said. “I was not aware of the repetitive requests, but I hear loud and clear now.”

County Attorney Jay Coward told board members they have a lawful right to the information being sought. He did not detail possible remedies if the Cashiers TTA information and minutes continue being withheld from county leaders.

Bumbargner also was unable to provide The Smoky Mountain News with minutes from her tourism board meetings or an accounting of how marketing money was spent, including magazines ads had published in. Bumgarner was not at the commission work session, held this week to discuss whether to hike the county room tax from 3 percent to 6 percent.

Room tax hike deliberated

Jones urged a slowdown on the consideration of a room tax hike from 3 to 6 percent. The tax on overnight lodging generated $440,000 last year, which is pumped back into tourism marketing efforts carried out by two separate tourism promotion agencies in the county — the Cashiers and Jackson County Travel and Tourism authorities.

Commissioner Doug Cody defended the county’s attempt to demand accountability for how tourism tax money is being spent.

“I want to know why we are getting our butts kicked, and where our money is going, and is it being used wisely, and I want to find out now. And putting the tax increase aside, there’s a reason we are lagging behind. And, I don’t want to wait a year,” Cody said.

Regional tourism numbers show Jackson County behind other Western North Carolina counties, both in revenue made and jobs created.

The commissioners did not weigh in during the workshop on their individual stances on a room tax increase. Previously, four voted in favor of the increase, but that was before public backlash. Commissioners will take up the issue in early January for a vote, with intentions of studying the issue between now and then.

County Manager Chuck Wooten estimated the county’s two TTAs have spent as much as $10 million combined in tourism tax money over the past 25 years. Cashiers receives 75 percent of the lodging tax generated in the Cashiers area — which amounted to $177,000 last year. The remaining $263,000 went to the Jackson Travel and Tourism Authority.

Cashiers’ efforts to attract tourists have been isolated from the county’s overall tourism efforts, spearheaded by the separate Jackson County Travel and Tourism Authority and the Jackson County Chamber of Commerce.

Cashiers does not share marketing strategy or advertising campaigns with the Jackson County TTA.

How we got here

• Jackson County commissioners in early October voted 4-1 to hike the county’s room tax from 3 percent to 6 percent, with Mark Jones voting against the increase.

• The board later rescinded that vote because, as advised by County Attorney Jay Coward, they failed to hold a legally required public hearing.

• A side issue erupted over whether the two separate tourism marketing arms — one for Cashiers and one for the county as a whole — should be merged.

• The obligatory public hearing was held last week, attracting a swarm of unhappy lodging owners from the southern portion of the county who aired their vast displeasure with the proposed increase.

• Commissioners held a work session this week to discuss the possible hike. Discussion among commissioners deteriorated into accusations of underhanded dealing and political power plays. Before the argument broke out, County Manager Chuck Wooten defended the sequence of events leading up to the room-tax vote by presenting commissioners and members of the news media with an inch-tall stack of paperwork. These included emails and other documentation accumulated before and after the October room tax hike.

Where do we go next?

County Manager Chuck Wooten provided the following suggestions for consideration by commissioners, carefully emphasizing these were an attempt to help, not control, the debate:

• Take no action: Occupancy tax remains at 3 percent and the county’s two travel and tourism boards continue as currently configured.

• Make minor structural changes: Keep two tourism agencies, but provide more flexibility in how the room tax is spent, allowing a portion to go toward “tourism-related expenditures,” including capital projects, rather than solely marketing and promotions.

• Do a comprehensive performance evaluation of the current tourism agencies and analyze the effectiveness of these organizations, then make decisions based off of the results.

• Hike the tax from 3 percent to 6 percent and form a single Jackson County Tourism Development Authority.

Cashiers business owners led the charge against a proposed tax increase on overnight lodging in Jackson County during a public hearing this week.

Several lodging owners complained that tourism is already down because of the economy. Asking tourists to pay a higher tax when they are reluctant to travel in the first place is adding insult to injury, they argued.

“This is our bread and butter,” said Richard Hattler of Mountain Lake Rentals in Cashiers, adding that a tax increase in these times of economic hardships is “insane.”

SEE ALSO: Is room tax hike aimed at helping scenic railroad? 

George Ware of Chalet Inn said tax increase would represent an “ill-advised action at the worst-possible time.”

About 40 people packed the hearing before county commissioners, with a dozen speaking out against the tax increase.

“You are going to negate the efforts of the tax itself,” said Judy Brown, president of the Greater Cashiers Area Merchants’ Association. “I think this is going to end up blowing up in our faces.”

Jackson leaders have proposed doubling the room tax from 3 to 6 percent. The room tax raised $440,000 last year, which is pumped back into tourism promotions.

The extra revenue from the proposed tax increase should mean more money to market Jackson County as a destination, which in turn should increase tourism. That’s something supporters say Jackson County sorely needs.

Overnight stays have declined by 12 percent in Jackson since 2006. Jackson has fared worse on the tourism front than other counties and has failed to rebound as well as its neighbors.

But a room tax increase is the wrong approach, opponents argued. It would put Jackson’s room tax higher than surrounding counties: Haywood and Transylvania are at 4 percent, while Macon and Swain are at 3 percent.

Tourists are already penny pinching as it is. Industry-wide, lodging owners note a major trend in how visitors book their trips these days.

“It is a last minute reservation, they want only one night, they want a discount, and they want the bottom line of how much it is going to cost,” said Michelle McMahon, owner of Mountain Brook Cottages for more than 30 years.

McMahon claims tourists are savvy enough these days to ask about extra taxes and fees, factoring the total cost — not just the advertised nightly rate — into their decision about where to stay.

“They compare, compare, compare,” McMahon said. “Nobody truthfully cares this is Jackson County. They just want to come to the mountains.”

Mary Korotwa, owner of Cashiers Resort Rentals, said the county is barking up the wrong tree in its quest for more tourism tax money. Instead, the county should be tracking down people who rent out their mountain homes and cabins to vacationers under the radar without levying the tax and remitting it to the county.

“You are leaving money on the table,” Korotwa said. “There are legions of homeowners in the county renting their own properties who are not paying the tax.”

Opponents overwhelmingly hailed from the Cashiers area. None of the county’s large chain hotels showed up.

That led County Commission Chairman Jack Debnam to wonder whether opposition to the rate hike is shared by the majority in the tourism industry. Debnam said the goal is to help tourism, not hurt it.

“We are trying to figure out how to promote Jackson County,” Debnam said. “We’ve got to be able to do a better job than we’ve been doing.”

Finding the best way

Controversy over the room tax increase has opened other wounds in the county. One is whether tourism tax revenue should continue to be divvied up between two tourism entities — the Jackson County Travel and Tourism Authority and a separate Cashiers Travel and Tourism Authority.

Both of those contract with either the Jackson County Chamber of Commerce and Cashiers Chamber of Commerce to carry out on-the-ground tourism marketing. Manning a visitor center, answering phones, mailing out brochures, placing ads in magazines or on billboards, managing a travel web site — all these functions are carried out by the respective chambers of commerce rather than an explicit county travel and tourism staff.

The county has floated the idea of merging the separate Jackson and Cashiers tourism agencies into a single countywide tourism authority. The chambers of commerce fear they could lose their starring role — and their cut of the room tax revenue — under a new structure.

Robert Jumper, chairman of the Jackson Travel and Tourism Authority, spoke up for the vital role played by the Jackson chamber when it comes to tourism.

The Jackson County Chamber of Commerce has the skills, knowledge and expertise to orchestrate tourism promotions on behalf of the county, Jumper said.

“We want our voice to be heard,” Jumper said, adding that any new countywide entity should honor the existing arrangement with the chamber

SEE ALSO: Railroad wants money, county wants assurances 

Debnam said not to worry. He said the two chambers of commerce would, in all likelihood, remain the go-to entities for carrying out the scope of tourism work.

“I think there is a big misconception about what is going to happen,” Debnam said.

Commissioners didn’t offer any comments of their own following the hearing. They will hold a work session to talk about what to do at 1 p.m. Monday, Nov. 14, in the county administration building. The earliest they would vote is at their next formal meeting on Nov. 21.

The commissioners previously voted 4 to 1 on their intent to increase the room tax, but that was prior to such backlash from Cashiers lodging owners. One commissioner is rumored to have changed his mind.

Meanwhile, lodging owners fighting the tax continue to rally their forces. They are forming a Jackson County Accommodations Association “to strengthen our voice,” said Henry Hoche, owner of Innisfree Inn By-the-Lake in Glenville.

As for a compromise, such as increasing the tax to only 4 percent as neighboring Haywood and Transylvania have done, Hoche wasn’t interested. A more modest increase from 3 to 4 percent would bring in another $115,000 a year to bolster tourism efforts. But it simply isn’t needed, Hoche said.