When GrowSmart Maine rolled out a Brookings Institution report, it felt like a huge creaky door had just been cranked open and a flood of sunshine burst through.
Here was the road map to a renewed Maine, an economically viable Maine, a Maine able to retain its charm and diversity of offerings, yet able to lower its poverty rate, increase its average income, and see a sharp rise in the number of residents who complete degrees in higher education, not to mention the ability to offer our kids the potential of successful careers right here in their home state.
Since then, I’ve been stunned by the strong opposition inside my industry to the proposed increase to the Maine lodging tax. In the eight years my bed & breakfast has been open, not one guest – or potential guest – has inquired as to the percentage of Maine’s lodging tax.
Tourists do not choose their destination based on the amount of lodging tax they’re going to pay. If they did, there would be far fewer snowbirds flocking to Tampa (12 percent) or Miami (13 percent). Think of all the kids who’d never go to Disney World, because Orlando’s lodging tax is 12.5 percent.
Maine’s 7 percent lodging tax is a bargain, by comparision.
Unfortunately, it’s a bargain that could be considered an unfair discount subsidized by Maine taxpayers. Maine’s lodging tax is the lowest in New England, and about half of other major tourism destinations charge overnight visitors. This “discount” translates to Maine taxpayers picking up the slack. The price of hosting millions of visitors a year far exceeds the meager 7 percent we’re collecting. What price? Think about the extra wear and tear on our roads, maintaining beaches and parks, increased demands for police protection, etc.
Maine taxpayers are already overburdened, and should get more help paying for these added services. Fortunately, a growing number of innkeepers agree with GrowSmart Maine and me. Longwoods International tourism statistics show Maine’s share of overnight visitors has been sliding, with only a slight rebound in 2005. We cannot rely solely on current methods – advertising – to attract visitors.
We need a transformative strategy that turns tourism promotion from an advertising game to a “quality counts” game. It works in the business world, and tourism is certainly a business.
Tourists choose destinations based on the quality of the experience and ease of accessibility. That’s where Maine shines – our stunning scenery, rural traditions, livable communities, quality products, the diversity of experiences we offer all set us apart.
These same qualities can attract new businesses, executives, entrepreneurs, and well-educated young workers. The Ware Street Inn hosts many potential new residents (professors, doctors, administrative personnel, etc.) who are drawn to Maine just because of what it has to offer. We should nurture and grow those qualities.
This is exactly what GrowSmart Maine is proposing to do with a $190 million Quality Places Fund paid for by an increase in the lodging tax from 7 to 10 percent.
The investment would grow the things tourists come here to see. It would make Maine even more “Maine-like!”
Like any good business plan, GrowSmart Maine’s strategy starts with a decent product, improves it, keeps costs competitive, and advertises. It makes so much sense! Why would we want to maintain status quo? It’s not working that well.
It’s inevitable that a lodging tax increase will happen; we don’t have a choice if we want to prosper. It’s time for all of us in the tourism industry to join forces to insist that the Legislature dedicate any increase to programs that grow tourism. We don’t want the revenue to disappear into the General Fund as it has in the past. We want it dedicated to Maine’s quality places.
If we invest in the places that tourists come to see, we’ll also be investing in growing Maine’s economy.
Jan Barrett is innkeeper and owner of the Ware Street Inn in Lewiston. E-mail her at [email protected].
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