Huntsville council is making adjustments to how municipal accommodation tax dollars will be allocated.
At a meeting on Oct. 27, council approved a 60-40 split for the next two years, with 40 per cent of municipal accommodation tax revenue going to the town and 60 per cent going to the Huntsville Municipal Accommodation Tax Association (HMATA), a corporation whose sole focus is the enhancement and promotion of tourism in Huntsville.
The previous funding split was 62 per cent for the HMATA and 38 per cent for the Town. However, at the Oct. 27 meeting, Jeff Suddaby, Chair of the HMATA, proposed a 65-35 split to help boost the tourist sector year-round, especially during the shoulder season.
“One week of winter revenue in the hospitality industry equals one day of summer revenues,” said Suddaby. “We can see the importance of increasing our revenues through late fall, winter, and early spring. And to meet these objectives, we need to do extra marketing efforts.”
He said the additional revenue will help fund and market activations like the Forest Light Trail coming to Sandhill Nursery this November, the downtown ice-skating rink, and the 55+ Winter Games.
“We want to ensure that we can have full-time employment within our industry and, of course, create that situation where all our business sectors, and I mean all of them, can be into a position where they can profit all year round every month of the year,” said Suddaby.
Staff proposed a 60-40 split, which council supported except for Coun. Scott Morrison.
“It’s really tough for me, because I know that if we stick to 65/35, we’re getting great value,” said Morrison. He said that as the Vice-Chair of HMATA, he would love to see better funding that would not only better support local businesses but also improve marketing efforts for them.
After a lengthy discussion, council approved a 60-40 split for the next two years.
