Updated: 11/15/2009 7:16:59 PM
A key group in bringing tourism to East Tennessee faced the possibility of closing its doors.
The Loudon County Visitors Bureau gets all its funding from hotel-motel tax, but sales tax has declined. The local government organizations need more of that money for their general funds.
As a result, the percent of hotel-motel tax distributed to the visitors bureau has decreased for the third year in a row.
"We started out at 50 percent then we went down to 36 percent and this year it was lowered to 29 percent," said Loudon County Visitors Bureau Executive Director Mary Bryant.
The Loudon County Visitors Bureau points to the importance of bringing events like fishing tournaments and other tourist acitivites to the area in order to draw revenue into the local economy.
Estimates show tourism brings in about $32 million a year to the Loudon County area.
"It's income that is not generated by the local tax-payer. It's generated by the visitors that come here, spend their money and then go off and do other things," said Loudon County Visitors Bureau Chairman Doug Davis.
"It's been difficult because at the same time we're growing our programs, we're having to do it with less and less money," Bryant said.
Even though the bureau has cut staff and reduced operating costs, they admit the latest budget cuts were so deep, they faced closing their doors.
"You stop cutting into fat and you start cutting into muscle. We're kind of at that point," Bryant said.
The news came as a disappointment for the visitors bureau as well as the local businesses who say they benefit from the bureau's work.
"Loudon County isn't a large area. It's not one that's going to be a destination for a lot of event and meeting planners," said Lenoir City Holiday Inn Express Susan Shaver. "We have 71 rooms. Our resources internally are limited."
Which is why, at least at the Lenoir City Holiday Inn Express, Christmas came a little early.
The Lenoir City Council voted last week to give the visitors bureau an additional $24,000.
"It keeps our doors open this year," Davis said.
Good news for the Holiday Inn Express as well, since hotel officials say open doors at the visitors bureau bring more visitors through their open doors.
"They're an amazing resource for us, working on our behalf," Shaver said.
The visitors bureau is still waiting to hear from the Loudon County Commission about any additional funds commissioners may be able to send their way.
