Occupancy Tax Increases from 3% to 5%
Snapshot of Tourism’s Economic Role
Strategic Direction for Cayuga County Office of Tourism

Occupancy Tax Increases from 3% to 5%

The Cayuga County Office of Tourism has been the contracted agency, chosen by Cayuga County, for marketing and promoting Cayuga County’s attractions, lodging and events for the past 11 years. Their budget is funded by the occupancy tax, with additional funds awarded through the I Love NY Matching Funds program, as well as other special grants and programs.

Prior to moving the proposal forward with the Cayuga County Legislature, in June ’06 the Cayuga County Office of Tourism polled its lodging properties to see if they would be in favor of raising the occupancy tax from 3% to 5%. (The occupancy tax is not a burden to local residents as it is paid by visitors to the area that spend the night in the County’s accommodations.) Twenty-nine properties in total were polled, representing 616 rooms, and 10 properties responded, representing 350 rooms. Of the respondents, 6 properties were in favor of the tax increase (81.4%) and 4 properties were opposed (18.6%).

One concern that was voiced by some of the hotels’ general managers, and later by Cayuga County legislators, was making sure the additional funds would go to the Tourism Office to bring new tourism dollars to Cayuga County. Those lodging properties that were against the increase simply did not want an increase to their overall guest bill, for fear of remaining competitive in their market.

After many presentations and meetings, the Cayuga County Legislature passed the occupancy tax increase in late summer ’07, to start in ’08. The main reason the Tourism Office wanted the tax increase was to have more funds to do added promotions, and to take tourism to the next level in Cayuga County. In ‘06, the Tourism Office compared their operating budget to that of surrounding counties in the Region. If the tax increase went through, the anticipated additional revenue was $125,000.

Return to top

Snapshot of Tourism’s Economic Role

The tourism industry is a key economic sector in Cayuga County and the Finger Lakes Region, generating over $84 million in visitor spending annually, resulting in over $9.8 million in local taxes generated by visitors, and representing 1414 jobs.

The total tax relief per Cayuga County household generated by tourism is $418.78.

Hotels, motels, and B&Bs representing 81% of Cayuga County’s rooms responded in favor of the increase in occupancy tax as long as it was used for tourism promotion.

Cayuga County’s tourism budget ranks below the majority of our neighboring counties including Ontario, Wayne, Oswego, Onondaga, Cortland and Tompkins Counties, making it impossible to compete for tourism dollars.

A multi-year strategic plan was formulated based on the results of the ’06-’07 Randall Travel Marketing Study to ensure the best use of the additional funds. The plan includes revamping the Tourism Office’s marketing materials with a special focus on E-marketing, outreach into the Finger Lakes Region promoting getaways and family events, NYC metro area promotions and direct sales efforts targeting AAA, groups and conferences. Without increased funding, this plan could not be implemented.

Expanding the Tourism Office’s investment in promotion will generate additional tax revenues brought in by visitors to the county, and expand tourism-related jobs and business development.

Return to top

Strategic Direction for Cayuga County Office of Tourism from Randall Travel Marketing Study ’06-’07 (May ‘07) (Plan predicated on increased funding in ’08)

Preparation Phase ’07 (All ’07 bullets have been achieved)

1. New photography for travel guide, website and advertising campaign
2. Gather E-marketing job descriptions and salary requirements
3. Increase occupancy tax from 3% to 5%
4. Add retail representation to the Board of Directors
5. Cost out responding to inquiries with Pre-Sort First class postage

2008

• Revamp marketing materials including website, travel guide, PR and advertisements
• Add E-Marketing position to develop internet mailers for leisure, business and individual travelers, and perform inquiry database “data mining” and analysis.
• Add restaurant representation on the Board of Directors
• Create culinary round table once or twice a year for idea and strategy exchange
• Create “lake effect” promotional strategy, both locally nationally
• Focus on Auburn and Aurora to drive “core density” perception
• Host workshop for wineries and attractions to help them better understand their customers and preferred services and products (Nov. ’07)
• Respond to all inquiries with pre-sort first class postage, as budget allows
• Travel promotion geared towards friends and relatives, reunions and wedding

‘09 Focus on outreach into the Finger Lakes Region

• Focus more on being a destination for family events
• 2-3 day getaways/romance promotion
• E-marketing targeting Gen-X
• In-room extended stay promotion

2010 Target NYC Metro Area

• Add sales position
• Develop meeting, sports, group tour and event planner’s guidelines
• Attend more trade & consumer shows
• E-marketing for convention, meeting and sports attendees

2011 Increase direct sales efforts in the Region and beyond

• AAA offices in the region, state and border states
• Continue focus on groups, conferences and sports

Other added projects:

• Improve gateways and signage, create consistency in style, design, color with additional funds for maintenance
• African-American, Hispanic, Gay and other minority segment promotions
• Improve front-line information at lodging properties- kiosks, tent cards, padded maps, etc.

Ongoing initiatives

1. Continue to provide hospitality training and workshops for tourism partners
2. Encourage unity among Cayuga County tourism businesses (E-newsletter)
3. Educate local population- annual report to be placed in local newspaper

Research and On-going Evaluation

• Annual market mix survey
• Visitor profile and conversion study (every three years)
• Annual evaluation of inquiry point-of-origin
• Website research form analysis
• Annual update to performance audit
• Research compatibility with NYS

Return to top

Volume 3.1:

• 10th Annual Amateur Chef’s Night

• Sand Beach Church Undergoes Transformation

• Energizing Auburn While Saving Our Planet

• Occupancy Tax Increases