Rise in Tax Receipts Bolsters Momentum of Morro Bay Tourism Efforts

With news that Morro Bay's income from Transient Occupancy Tax (TOT) increased by 10 percent this past year, city officials and business owners are optimistic and eager to make sure the upward trend continues.

 "This news is great on many levels," said Morro Bay Mayor Jamie Irons.

He said the increase is a strong indicator that the economic climate has turned around and recovery is on the way.

"It also shows that we have positioned ourself well for this recovery and our investment in marketing Morro Bay is paying off," he said. "We have established our Tourism Bureau, which is setting the foundation for future marketing strategies."

Irons said that although some of this year's rise may have been the result of previous years' work, he is confident that as Tourism Bureau efforts gain momentum, next year's TOT numbers will climb as well. 

To help ensure a continuing increase in visitor-related income for the city, the bureau has crafted an aggressive marketing plan for the coming year and is working with noted tourism expert Carl Ribaudo. The head of Strategic Marketing Group in South Lake Tahoe, Ribaudo is currently analyzing the effectiveness of Morro Bay's marketing efforts. In October, he will present his recommendations for bringing even more visitors to the community.

Ribaudo's presentation will be from 9 a.m. to noon on Thursday, Oct. 3, at the Morro Bay Veterans Hall, 209 Surf St. It is open to the public, and the Tourism Bureau is encouraging local business owners and members of the community to attend.

Ribaudo noted that although the Tourism Bureau's work is essential to increasing the number of visitors – and the tax dollars they generate – the bureau is just one piece of the puzzle.

"They are not going to sink or sail the ship on their own," he said.

He emphasized the need for all members of the community to see tourism in a positive light and understand the connection between tourism and the financial health of the city.

During the past fiscal year, which ended June 30, Morro Bay took in $2.2 million in TOT dollars, an increase of 10 percent from the previous year. The visitor tax is added onto hotel, motel, recreational-vehicle and vacation-rental fees, and the money goes into Morro Bay's General Fund, where it helps pay for city maintenance and services.

"Some people say they don't like tourism," Ribaudo said. "But, if you don't like tourism, what services would you like to see cut?"

He noted that tourism is not only beneficial to the hotels, restaurants and other businesses that cater to visitors; it's essential to the city as a whole. Tax money generated by tourists helps pay for everything from street paving to police, fire and paramedic services. In addition, he said, tourism provides more labor opportunities by increasing the number of hospitality-related jobs in the city.

In addition to TOT funds, Morro Bay hotels and motels raised $567,000 in Tourist Business Improvement District (TBID) dollars last year, a 9.5-percent increase from the previous fiscal year. TBID money is used to help attract tourists to Morro Bay.

Michele Jacquez, head of the city's TBID Advisory Board, noted a 4.5-percent increase in hotel room occupancy during the past fiscal year and emphasized that she and others on the board are eager to see that upward trend continue and grow.

She noted that in addition to increased marketing efforts, several local hoteliers are putting money into renovation of older properties in order to provide a better visitor experience. To maximize tourism income, she said, there needs to be a focus on attracting both overnight visitors and tourists who come into town just for the day.

"Things don't change overnight. It's a process," Jacquez said. "We're hoping to get that perfect storm, with marketing professionals, hoteliers, restaurateurs, merchants and event planners all working together."

With an effort like that, she said, everyone benefits.

Submitted by: Karin Moss, Executive Director, Morro Bay Tourism Bureau, (805)  225-1570

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