Report could determine future of Jackson’s tourism tax
The future of Jackson’s tourism tax could be decided by a report expected to be wrapped up in December.
State lawmakers are conducting an inquiry into Visit Jackson, the group that oversees the Jackson tourism tax, after a memo revealed that its annual music festival had lost millions of dollars and after it was discovered that most of its board members were serving after their terms had expired.
Visit Jackson is the group formerly known as the Jackson Convention and Visitors Bureau.
Its operations are funded by a hotel and motel tax, which generates about $3.5 million a year.
The tax, which had to be reauthorized by the state this year, was given a one-year extension until the memo’s findings could be evaluated further.
The memo was drawn up by the Joint Legislative Committee on Performance Evaluation and Expenditure Review, or PEER.
The Mississippi Legislature will likely take up the tax again during the 2019 session, said District 26 Sen. John Horhn.
“I don’t think anyone that is involved with this is interested in abolishing the visitors’ bureau. The question is can it (the bureau) do a better job and can we help it do a better job,” Horhn said. “We’re asking ourselves that question right now through our analysis.”
The state is also looking at Visit Jackson’s staff size, as well as the fact that several board members had not been reappointed but were still serving.
The inquiry is being conducted by Destination Services, an independent tourism consultant from St. Charles, Mo. The firm was chosen through a competitive bid process, PEER Executive Director James Barber said.
As part of the legislation reauthorizing the assessment through the 2019 fiscal
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year, Visit Jackson had to put up $100,000 of its own money to fund the study, Horhn said.
“They have to come up with the report by the first of December,” he said.
The PEER memo states that between 2013 and 2016, the Jackson Rhythm and Blues Festival lost nearly $2.4 million, or an average of $597,000 a year. The memo did not include figures for 2017, but Horhn suspects that the festival lost an additional $600,000 that year. No festival was held in 2018, and no plans are in place to renew the festival in the future.
Because of the losses, PEER stated that Visit Jackson ended 2014 and 2016 with deficits of $286,000 and $177,000 respectively.
As for Visit Jackson’s size, it is comparable to similar agencies in same-size cities.
The agency has 16 full-time employees and four part-time employees, which serve a city of 169,000. Visit Mobile, which represents a city 193,000, has a staff of 18, according to its Web site. Visit Baton Rouge, which serves a city of 227,000, has 19 staffers.
Visit Jackson Chair Robert Gibbs refutes the fact that the Rhythm and Blues Festival was supposed to be profitable.
“From my perspective as a board member … the festival was never conceived to be a money maker,” he said. “Instead, Visit Jackson saw a void in Jackson’s attempt to be a destination city. Jackson is one of a very few cities our size which does not have a major music festival.”
While PEER data shows that the festival lost money, hotels and restaurants did see a bump in business on festival weekends.
“Compared to 2012 figures, hotel occupancy was higher for the weekends the festival was held – up by more than nine percent in 2013 and almost 18 percent in 2016 – however, PEER staff cannot dissect the amount attributable exclusively to the festival,” PEER states.
Hotels reported a 61.6 and 59.6 percent occupancy rate on the Friday and Saturday of the festival in 2013. Those figures increased to 64.2 and 62.8 the second year, 69.3 percent and 67.7 percent in 2015, and 69.8 and 70.9 percent in 2016, data shows.
The festival drew at least 4,000 people to the city each year, with more than 9,400 attending in 2014. About 5,600 people attended in 2013, compared to 4,200 in 2015 and 4,100 in 2016, the memo states.
Along with extending the tax for one year, legislators also changed rules for the Visit Jackson board of directors.
“We required the mayor to make his appointments within 90 days of the statute going into effect,” Horhn said. “There are nine members. The mayor so far has reappointed five people. He’s added enough to make sure (there is) a quorum. The other positions are still vacant.”
According to Visit Jackson’s Web site, board members are Robert Gibbs, Gaines Sturdivant, Mende Malouf, Ken Crotwell, Monique Davis, Pamela Confer, Jackie Wansley and Carol Burger.
It was not known which five members had been reappointed by the mayor. Gibbs, who serves as chairman, said he had been reappointed. He disagreed that board members had to be reappointed to continue serving and pointed to the state statute establishing Visit Jackson.
“Any board member whose term has expired may continue to serve without violating any laws,” Gibbs said. “In fact, the statute which authorizes the Jackson Convention and Visitors Bureau provides: “Each member of the bureau shall serve until his or her successor is appointed and qualified.”
In 1983, the state passed SB 3080, authorizing levying a one-percent tax on hotels/motels and restaurants in the capital city, Visit Jackson’s website state.
Funds generated are used specifically to promote tourism, with a portion of the monies going toward Visit Jackson’s operating expenses.
The tax has to be renewed every four years. During the final year of authorization, the legislature is allowed to reauthorize the bureau or let it sunset.
The tourism tax sunset once previously, under former Mayor Harvey Johnson. When the tax was reinstituted, the Jackson Convention and Visitors Bureau was formed.
