Tourism bureau collects $3.3 million (7/28)

Posted July 28, 2009 at 12:49 am
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By HECTOR SAN MIGUEL
AMERICAN PRESS

The Southwest Louisiana Convention and Visitors Bureau collected more than $3 million in 2008 in hotel occupancy taxes thanks to two hurricanes.

The bureau’s annual audit showing the latest collection figures was released Monday by the State Legislative Auditor’s Office.

The audit shows that the bureau collected $3,361,527 in occupancy taxes last year — an increase of $393,870 from 2007, or 13.2 percent.

“The increase in revenues from the occupancy tax is a result of increased occupancy due to housing Hurricane Gustav and Hurricane Ike victims,” the audit stated.

Under state law, the tourism bureau is permitted to collect a 4 percent tax on occupancy of each hotel and motel room and from overnight camping facilities.

The proceeds from the tax are used by the bureau to fund operations and for “attracting conventions and tourists into the area,” according to the audit.

The bureau reported in the audit that by the end of this summer it expects four hotels to open, adding 325 new rooms to the area.

The tourism bureau also received $374,983 in “grants/insurance revenue” because of Hurricane Ike, according to the audit. The storm’s surge flooded most of the lakefront area last September.

“Insurance and FEMA grants revenue increased 316.62 percent because the FEMA grants for Hurricane Rita were received in 2008, and Hurricane Ike payments were also received in 2008,” the audit states.

The audit shows the bureau received $90,006 in grants and insurance in 2007.

There was also an increase in “cooperative advertising revenue,” which went up “123.37 percent due to new projects being developed such as the Getaway Guide buy in,” the audit stated.

The bureau reported $47,176 for 2008 in this kind of advertising revenue, which was up from the $21,120 reported in 2007.

Overall, the bureau collected $4.3 million in revenues for 2008, the audit shows. Total expenditures last year were listed $3.8 million.

Under expenses, the audit stated, “Advertising, sales and promotions increased 45.94 percent as a result of the CDBG (community development block grant) concluding in June 2008 and the board approved additional expenditures in July 2008.

“The increase was done to maintain a high level of publicity and promotion once the CDBG grant funds concluded.”

The audit reported that the building maintenance costs rose 1,787.14 percent for “major repairs due to Hurricane Ike in 2008.”

The costs last year were reported as $224,928, the audit showed. The 2007 expenses for building maintenance were $11,219.

“Legal/professional fees increased by 109 percent due to the ongoing legal proceedings against our insurance carrier, EMC, for wind and rain damage from Hurricane Rita,” the audit stated.

“Our CPA consultant reinstalled our accounting software after installing a new computer server.”

The 2008 fees were reported in the audit as $273,124, up from the $130,683 paid by the bureau in 2007.

The bureau’s executive director is Shelly Johnson.

The board of directors are Fran Sanchez, Gayle Fisher, Diane Kane, Anne Monlezun, Jerry LeBlanc, Tracy French, Larry Lepinski, Mike Carrier, Jennifer Viccellio, Charles Timpa and Nick Zaver.

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