Absolutely!
Each dollar spent outside of the city of Branson for lodging, shows, attractions, restaurants, souvenirs and other retail sales does not put one dollar in the till of a Branson lodging establishment, show, attraction, or restaurant that collects and remits the tourism tax to the city of Branson. Further, it does not contribute one penny to reimbursing the marketing taxes that have been diverted from the marketing businesses inside the city of Branson to the marketing of businesses outside Branson.
“But Seagull, what about a ‘rising tide raises all boats?’” “That’s nuts! Could you tell an Ole Seagull how someone spending $150 per night for six nights of lodging outside the city of Branson does anything to ‘raise’ a Branson lodging establishment?”
To an Ole Seagull, if that person spends $150 per night or $900 for the six nights of lodging outside of the city of Branson, it doesn’t take a rocket scientist to figure out that a lodging establishment within the city of Branson is not getting one penny of the $900 in lodging business. In addition, the city of Branson will not collect the 4% tourism tax, which amounts to $36, or the 2% city sales tax, which is $18. This results in a total loss of $54 in revenue for the city.
“But Seagull, that doesn’t amount to a hill of beans in terms of Branson’s total economy.” “But if the ‘hill of beans’ is dollars, it amounts to something! If you multiply $54 by 10,000, the result is $540,000 in lost tax revenues, and the city’s lodging establishments would lose $9,000,000 in revenue. Somehow, especially if you believe, as an Ole Seagull, that the number is higher than 10,000, a reasonable person has to believe that it affects Branson’s total economy.
“Don’t those people come into Branson for shows, attractions, shopping and to eat?” “Probably so, but can any reasonable person believe that they will do so at anywhere near the same rate as those staying in Branson?” Every show, attraction, restaurant, retail store, etc., needs people to spend time in their venue if they are going to be successful. People on vacation can, for the most part, find the money to do those things they want to do.
However, most can’t add additional time to their vacation, business trip, getaway, etc. It runs for a specific period; they arrive and depart on set dates. They either attend your show, dine at your restaurant, or shop at your store and spend money during that period—or they don’t. An Ole Seagull believes there’s a much better chance of that happening with people staying in Branson than those staying at Big Cedar or on the west side of Table Rock Lake.
To him, Branson using the tourism tax revenues collected and paid to the city by its lodging, shows, attractions, restaurants, retail stores, etc., to promote entities outside of Branson is not only “nuts” but, from a tourism perspective, akin to shooting itself in the foot.
“Oh, come on, Seagull, what about a little bit of ‘kumbaya?’ Isn’t all well that brings tourists into Southwest Missouri and Taney and Stone counties?” “That’s the Kool-Aid they want you to drink, but in reality, those entities outside of Branson get every penny in taxes they are entitled to, plus the businesses benefit from free marketing paid for by the city of Branson’s Tourism Tax. Great deal for them but, in the opinion of an Ole Seagull, at the expense of the city of Branson and its lodging, shows, attractions, restaurants, retail stores, etc.”
* The same logic used for Branson applies to the TCED Retail Tourism Tax.
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