THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, August 23, 1995 TAG: 9508230454
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER
LENGTH: Short : 44 lines
By a vote of 9-2, the City Council early Wednesday approved a $1 a night increase in hotel and motel bills to pay for increased tourist advertising.
The proposal, developed jointly by the city's tourism office and the Virginia Beach Hotel and Motel Association, would increase the city's annual advertising and marketing budget from $2.7 million to $5.4 million.
The city and association have complained that local advertising dollars are not increasing fast enough to compete with other east coast tourist destinations, such as Myrtle Beach, S.C., and the Outer Banks of North Carolina.
Henry Richardson, president of the association, said the new tax would have helped hotels weather last week's threatened hurricane. ``We've lost millions upon millions in our industry in the last few days,'' he said. ``If we'd had the ability to go on national television immediately, we could have reversed some of those losses.''
The association's general membership voted 25-18 in favor of the new tax at its June 15 meeting, he said.
Two of those who voted against the proposal spoke to the council before it voted early Wednesday morning.
``Somebody's got to speak up for the visitors,'' Jimmy Capps, of The Breakers hotel, told the Council. ``I just think the occupancy tax already . .
The city collects a 5.5 percent tax on hotel and motel bills, a portion of which is dedicated to Oceanfront improvements. That portion, plus a half percent of the existing 9 percent restaurant tax generates more than $2.7 million a year, city officials said.
The new tax is expected to produce another $1.4 million a year.
The money will be used for advertising, except what is collected in Sandbridge, which will be used to supplement funding for beach replenishment. The new tax will not be levied on campgrounds.
KEYWORDS: VIRGINIA BEACH CITY COUNCIL by CNB