Charlotte mayor says tourism revenues could help ‘devastated’ hospitality industry
Charlotte Mayor Vi Lyles suggested Tuesday that the city would use tourism revenue to help out a hospitality industry advocates say has been “devastated” by the novel coronavirus pandemic.
“The hospitality industry is probably one of our areas where we’re going to have the heaviest emphasis on for recovery,” she told reporters at a virtual news conference. “We have been talking to them how to do that.”
The city had previously pledged $110 million in tourism revenues to make investments involved in successfully landing the new Major League Soccer franchise. The money comes primarily from taxes on hotels, rental cars and prepared food.
Lyles was asked if that money was “untouchable.”
“That’s probably not the first thing on top our agenda for tourism dollars,” she said. “When we look at the loss in our restaurant industry and our hospitality industry, we’re going to be looking at that first and foremost.”
Seeking help
With restaurants, bars and some hotels closed, the industry has taken a beating.
“It’s not a secret that it has basically devastated the hospitality business,” Mohammad Jenatian, president of the Greater Charlotte Hospitality and Tourism Alliance, said Tuesday.
More than 445,000 North Carolinians had filed for unemployment benefits through Monday, according to the state Department of Commerce.
The tourism alliance is asking local and state governments to help. Among other things it’s asking for tax credits, extensions on tax filing deadlines and that lenders, landlords and utility providers have a three-month grace period on payments.
City Council member Braxton Winston said he’s ready to help.
“The big thing I’m focused on is not just the businesses but the workers,” he said. “Making sure any aid we can provide is making its way down to the workers. . . Re-prioritization for projects and buckets of money are going to be integral to that. And everything has to be on the table.”
The economic hit comes after the hospitality industry’s best year ever.
According to the alliance, Mecklenburg restaurants and bars saw $3.6 billionin revenues last year. It generated $100 million in revenue from occupancy and food and beverage taxes.
Meeting demand
Jenatian said he believes there will be a pent-up demand for travel after the COVID-19 outbreak subsides – and it’s critical that Charlotte positions itself as a key destination then, even for “staycations.”
“We need to go out there and spend a heck of a lot more money than we ever have to promote Charlotte,” he said. “We have to look for a whole new market.”
Charlotte residents spending tourism dollars in their own city will be critical for Charlotte’s recovery, he said. A large portion of Charlotte’s hotel business comes from corporate spending, and that could take a while to bounce back, Jenatian said.
”The bread and butter for the next few months is going to be the business in your own backyard,” he added.
Jenatian also encourages Mecklenburg County residents to buy gift cards to local businesses now and to make hotel reservations in Charlotte for the future.
”This is actually a perfect opportunity for people in Charlotte to discover what Charlotte has to offer,” he said.
And he said local businesses, including hotels and restaurants, will rely on money from local and state government, whether that’s through hospitality fund money, the “rainy day fund” or disaster bridge loans.
”Whatever rainy day (fund) we have, we’re going to go ahead and spend it, because it’s pouring,” Jenatian said.
