Chamber updates city leaders on the status of the economy: sales tax collection up 13%4 min read

For some time now, the Sedona Chamber of Commerce and Tourism Bureau has been stressing the same message in terms of tourists — it’s all about quality over quantity. That feeling was reiterated during the chamber’s annual meeting held Oct. 10, at the Hilton Sedona Resort at Bell Rock in the Village of Oak Creek. “We truly believe that Sedona is the most beautiful place on earth and we want to keep it that way, for generations to come,” chamber President and CEO Jennifer Wesselhoff said.

“That’s why we are focused on balance. Balancing visitor attraction, with visitor management. Balancing a thriving tourism economy, with our residents’ quality of life.” She said they know for long-term viability of Sedona, they must do their part to ensure quality of life, stewardship of the natural environment, and a quality visitor experience and robust industry. All of these must work together for true sustainability — on every level.

Wesselhoff said the chamber’s new role in the community has shifted over the last several years; Destination management and marketing organizations today are involved in more than just destination marketing, sales and communications. Destination management involves coordinated and integrated management of the destination product mix.  “We are not merely a promotion or sales agency but rather, leaders and coordinators in every aspect of community development and management,” she said. Tourism is the lifeblood of Sedona, as is evidenced by the fact that it’s a $600 million industry. Sedona visitors add almost $15 million in local tax dollars. In the last fiscal year, $4.4 million in bed taxes were collected, which is up 16 percent  —more than $600,000 — than the previous year. Sales tax collections totaled more than $18 million, 13 percent higher or almost $2.1 million more than the previous year. Wesselhoff pointed out that in order to generate an extra $2 million in taxes, almost $70 million more was spent on taxable items. Also during the past year, the average occupancy in hotels was up a modest

2 percent and average daily rates finished the year up 3.2 percent. She said to keep in mind that since 2014, occupancy has grown 6 percent and rates have grown 28 percent. “Our goal in this upcoming year will be to try to find the sweet spot,” she said. “A place where businesses are thriving, the environment is protected and the residents are tolerant of the traffic conditions.” She admitted that they did not find that sweet spot this summer, as they stopped all advertising in the Phoenix market and instead focused on Southern California.

“From what we’re hearing from businesses, many of them suffered this summer, and while it could be many things, some recognized that our shift away from Phoenix and solely into Southern California impacted them significantly,” Wesselhoff said. “That’s going to be our focus for the upcoming year. Finding the balance. Quite frankly, I feel, this is going to be our biggest challenge — getting on the same page with residents, businesses and environmental advocates — as to just where this sweet spot is.” In terms of the overall visitor experience, chamber Marketing Director Michelle Conway said a survey showed that 98 percent of respondents said Sedona was an excellent [68 percent] or good [30 percent] place to visit compared to other options. Residents also praised the city in that survey, with 87 percent rating quality of life here as excellent or good. “It’s clear that both residents and visitors share a love for Sedona,” Conway said. “We are all tied together. Happy residents create a happy destination. And a happy destination creates happy visitors. And happy visitors create a vibrant economy and incredible amenities, which, in turn, creates happy residents. Residents and visitors are invariably linked.” Teri Ruiz, the chamber’s director of partner services, said they currently have more than 850 members, including 120 news ones this past year and boast an 85 percent retention rate. And of those, 118 have been chamber members for 25 years or more. “We believe our success is largely due the value we bring to small business owners,” she said. “Chamber partnership provides local businesses with access to the local business community through connections. Partnership provides increased exposure, allowing small businesses to market at a higher level, networking opportunities that build stronger relationships, which in turn build community. And naturally, education is a key component to success. We recognize the connection between people, places, and relationships

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