Cape sees breakout year for visitors

By AMITY SHEDD and Erin Ragan ~ Southeast Missourian

Friday, January 3, 2014

Visitors stream into the Show Me Center Saturday, Dec. 21, for Southeast Missouri State University's 2013 Fall Commencement Ceremony . (Adam Vogler)

A look at visitors in Cape Girardeau during 2013 shows leisure travel as the No. 1 reason people visit the city, though construction, amateur sports and entertainment also brought many to town.

The list of eight primary market drivers was compiled and included in an annual summary of the Cape Girardeau Convention and Visitors Bureau using information shared by Drury Hotels, which has three hotels in town, and Midamerica Hotels Corp., which has two hotels and a future Hampton Inn being built in Cape Girardeau. Market drivers and rank are related to overnight guests.

Leisure travelers are listed as people who choose to vacation in Cape Girardeau, as well as travel groups and interstate travelers. Many larger-scale events, along with attractions that fall under the visitors bureau's definition of "destination development," helped draw visitors.

In the visitors bureau's 2013 fiscal year, hotel tax collections increased by 10.54 percent, according to the summary. Between the beginning of fiscal year 2011 through 2013, the hotel tax collections increased by 25.75 percent.

Michael Ogle, regional sales manager for Drury Hotels, said 2013 was a unique year for its hotels in Cape Girardeau because of the filming of "Gone Girl," which began in August and finished in October.

Diners pack Bella Italia Ristorante, 20 North Spanish, Saturday, Dec. 21, after Southeast Missouri State University's 2013 Fall Commencement Ceremony . (Adam Vogler)

"The market was pretty saturated during that time," Ogle said.

"For 2013, that was it," he said. "That sealed the deal. That put the stamp on the industry for those two months."

Southeast Missouri State University events, such as homecoming and parents' weekend, also keep area hotels busy during other times of the year.

"Those are huge, huge dates," Ogle said. "We're always selling out during those particular times."

Graduation days, held twice a year by the university, also can be among the busiest for restaurants and hotels because hundreds of students' families are in town for the events.

Advance fans cheer after the Hornets' 83-77 overtime win over the Oak Ridge Blue Jays in the consolation final of the Southeast Missourian Christmas Tournament Monday, Dec. 30, at the Show Me Center. (Adam Vogler)

A likely contributor to the boost in visitors in the leisure market category were patrons of Isle Casino Cape Girardeau, which finished its first full year of operation. When the casino was readying for opening day, city leaders and supporters touted an estimate of 1 million patrons coming through turnstiles to the casino floor in its first year.

When comparing that to one full year of actual attendance, the estimate looks to have been accurate. From opening day Oct. 30, 2012, through the end of November 2013, the casino documented a total of 1,121,096 patrons, according to monthly reports to the Missouri Gaming Commission.

How many of the casino's visitors actually stay in hotels remains unclear.

Construction also was high on the list of market drivers. Building the casino and a $127 million expansion and renovation project for Saint Francis Medical Center, among other projects, placed construction as the second reason people visited Cape Girardeau in 2013, according to the summary.

Other primary market drivers are the amateur sports market; medical reasons that include physician recruitment and patient family overnight stays, the social market that include weddings and reunions, corporate travel and government business travel.

A recent example of a sporting event that drew visitors is the Southeast Missourian Christmas Tournament, which the Show Me Center hosted for the 11th straight year. The arena welcomed 19,189 people to watch area high school basketball teams compete for this year's title.

Attendance was up about 1,500 from last year. At 17,615, the 2012 tournament's total attendance was the lowest on record. The highest total recorded was 27,241 in 2005.

"The amateur sports market saw significant growth as well," including high school state volleyball and golf championships and the Special Olympics Missouri State Outdoor Games, said visitors bureau director Chuck Martin in an email to the Southeast Missourian.

The American Junior Golf Association's Rolex Girls Junior Championship, a four-day event in June at Dalhousie Golf Club, brought more than 70 golfers and their families, coaches, officials and association representatives to Cape Girardeau. The visitors bureau projected an average daily expenditure of $150 a person, with $45 going toward lodging, $35 for food, $20 on gasoline and $50 worth of miscellaneous spending during estimates released in June. Total overnight guests for the event were projected at 700, which meant the economic effect should have been about $105,000, according to the bureau.

Entertainment came in eighth on list, as events at the Show Me Center and the Bedell Performance Hall at the Southeast Missouri State University River Campus drew crowds.

The Show Me Center recently featured performers such as Styx and REO Speedwagon and Christian rapper tobyMac, as well as the 43rd annual Christmas Arts and Crafts Extravaganza, all of which brought thousands through the turnstiles.

Another short-term event that brings visitors is the SEMO District Fair, which is attended by about 90,000 people during an eight-day period each September, according to archived figures of the Southeast Missourian.

Local economic effects

In addition to the benefits tourism brings to the hospitality industry, visitors result in millions in tax revenue for the city. In fact, the 2013 fiscal year was a banner year in that regard, and totals so far in the 2014 fiscal year appear to be on track to go even higher.

A positive effect on local tax collections resulted from market drivers being significantly above average during the fiscal year, Martin confirmed in an email.

Extras participate in the filming of "Gone Girl" on Wednesday, Oct. 9, 2013, in Cape Girardeau. (Laura Simon)

Revenue from taxes on hotel and motel stays and meals out in the city totaled $2,025,089 in fiscal year 2013, which covers July 2012 through the end of June 2013. Since the start of the 2014 fiscal year, the city has collected a total of $1,041,118.

The revenue comes from a 1 percent tax on gross receipts for restaurant meals and a 4 percent tax on gross receipts for hotel stays. The tax is paid solely by the customer.

The past year represented good business for hotels and restaurants as evidenced by the revenue -- April and June of 2013 were the highest-grossing months for restaurants since at least 2009, with $126,455 and $126,477 paid to the city.

Main Street is jammed with people and racing cars at the finish line of the Hemming Motor News 2013 Great Race Tuesday, June 25, 2013 in Cape Girardeau. (Fred Lynch)

For hotels, July and October were the best months, with $69,285 and $72,982 remitted for the tax. The Great Race came to Cape Girardeau in July, and "Gone Girl" filmed in October.

Revenue from the hotel/motel tax collections fund the operation of the visitors bureau. Revenue from the restaurant tax helps pay for bonds used to fund construction of the River Campus.

More visitors and more tourism equal economic benefits for the city.

"I've always said that we are a regional hub, and we could not have the infrastructure, any of the facilities, the things that make our community and city what it is without the trade area and status as regional base that we have," said Mayor Harry Rediger. "Our city of 38,000 could not be what it is today without that. There is a tremendous impact from tourists and visitors coming into our city daily, weekly and annually. It makes a tremendous difference to our local economy."

ashedd@semissourian.com

388-3632

eragan@semissourian.com

388-3627

Why do people visit Cape Girardeau?

Eight primary market drivers for Cape Girardeau, identified using information shared by Drury Hotels and Midamerica Hotels Corp. Rank relates to overnight guests.

1. Leisure travel

2. Construction

3. Amateur sports

4. Medical

5. Social market

6. Corporate travel

7. Government business travel

8. Entertainment

Source: Cape Girardeau Convention and Visitors Bureau

Who stays in Cape Girardeau?

The following lists the state where the percentages of guests who stay overnight in Cape Girardeau are from:

Missouri: 47.7 percent

Illinois: 11.9 percent

Tennessee: 3.4 percent

Arkansas: 3.1 percent

Texas: 2.8 percent

Source: Fiscal Year 2013 Visitor Origin Study by Cape Girardeau Convention and Visitors Bureau

Comments

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Honestly, when you really look at this, it's ridiculous. We now have a make-believe economy based on entertainment, gambling, and tourism. There are very few people actually making anything. There's no real economy, just people engaging in distractions, probably on credit cards. Surely we're a society in deep decline.

Real wages for most are stagnant or falling. The percent of people employed is the lowest since the 70s. The government is deep in debt and its growing. 10 million baby boomers per day about to draw SS and Medicare and the mayor's all excited because a few out of town people are eating at restaurants. Strikes me as just a little stupid.

-- Posted by swamper on Fri, Jan 3, 2014, at 7:42 AM
the Casino has Paid $300,000.00 to the City of Cape Girardeau for the Visitors that have come to have Fun We Need to say Thank You

-- Posted by falcon2412 on Fri, Jan 3, 2014, at 7:44 AM
"the Casino has Paid $300,000.00 to the City of Cape Girardeau for the Visitors that have come to have Fun We Need to say Thank You-- Posted by falcon2412 on Fri, Jan 3, 2014, at 7:44 AM"

Majority of casino 'visitors' live within 50 miles, thus $300,000 falcon's number = over $6,000,000- 7,000,000 million redirected from other local businesses.

-- Posted by Otoe on Fri, Jan 3, 2014, at 9:04 AM
We are not booming like we should be compared to other cities our size. Were located to close to St Louis and Memphis to really have what you call a boom. If you will notice according to these stats entertainment is at the bottom and entertainment is where the revenue at.

-- Posted by swampeastmissouri on Fri, Jan 3, 2014, at 10:08 AM
City is Part of the Action they get there Check end of the month $300,000.00 in the Bank

-- Posted by falcon2412 on Fri, Jan 3, 2014, at 11:49 AM
With the "millions" in taxes the visitors are bestowing on the town, one wonders why the push on the "use tax" that will apply only to Cape citizens' purchases of registered/licensed motor vehicles.

The town needs to raise taxes on the visitors. Vote for the extension of the "restaurant tax."

-- Posted by semowasp on Fri, Jan 3, 2014, at 12:04 PM
semowasp: If it wouldn't be for the outside folks coming to Cape spending money it would be slim pickings.

-- Posted by swampeastmissouri on Fri, Jan 3, 2014, at 12:49 PM
The prevailing logic that it is easier to tax non-residents than the town's three largest landowners and employers (SEMO, Southeast & St. Francis)fails on the fact that individually Cape residents pay more under this system because of its application to high ticket items such as motor vehicles. The local portion of the sales tax or use tax, if passed, does not apply to the non-residents.

The issue is whether there is a different way to get at the three free-loaders - say a payroll tax. Guaranteed that if those entities had to pay up there would be a whole lot more analysis in how the town spent "their" money.

-- Posted by semowasp on Fri, Jan 3, 2014, at 3:19 PM
Maybe I'm missing something, will the "Use Tax" include a tax on services such as medical and legal? St. Louis has some similar scheme.

-- Posted by semowasp on Fri, Jan 3, 2014, at 4:14 PM
"Maybe I'm missing something"

That's an understatement!!!!!

First, "town's three largest landowners and employers SEMO, Southeast & St. Francis" are not-for-profits and are treated differently with regard to taxation.

Second, "Use Tax"

Use Tax

Use tax is imposed on the storage, use or consumption of tangible personal property in this state. The state use tax rate is 4.225%. Cities and counties may impose an additional local use tax. The amount of use tax due on a transaction depends on the combined (local and state) use tax rate in effect at the Missouri location where the tangible personal property is stored, used or consumed. Local use taxes are distributed in the same manner as sales taxes.

Unlike sales tax, which requires a sale at retail in Missouri, use tax is imposed directly upon the person that stores, uses, or consumes tangible personal property in Missouri. Use tax does not apply if the purchase is from a Missouri retailer and subject to Missouri sales tax.

Missouri cannot require out-of-state companies that do not have nexus or a "direct connection" with the state to collect and remit use tax. If an out-of -state seller does not collect use tax from the purchaser, the purchaser is responsible for remitting the use tax to Missouri.

A seller not engaged in business is not required to collect Missouri tax but the purchaser in these instances is responsible for remitting use tax to Missouri. A purchaser is required to file a use tax return if the cumulative purchases subject to use tax exceed two thousand dollars in a calendar year.

Any vendor and its affiliates selling tangible personal property to Missouri customers should collect and pay sales or use tax in order to be eligible to receive Missouri state contracts, regardless of whether that vendor or affiliate has nexus with Missouri.

http://dor.mo.gov/business/sales/

-- Posted by persnickety on Fri, Jan 3, 2014, at 5:55 PM
It's true, if one spends its excess funds on advertising it limits its profit. Throw in some capital expansion projects and the myth of "non-profit" is preserved. Obviously the term does not apply to employees or professional users of the facilities. The question for Cape residents is whether the town residents get real value for subsidizing the trio.

And, yes I know the economic value arguments, but the simple question is, where would they go if Cape changed the cost metric?

Thanks for the lecture on Use Tax. Again, it reflects inside the box thinking. Despite the hype, Cape residents - not outsiders - are those most affected by taxes on motor vehicles. If the Cape council retains its fixation on raising money on the backs of the town's guests then there are other ways - such as a service or winnings tax.

Why should legal and medical spending be exempt from the town rake? Similarly, if the casino is an entertainment venue, why aren't the proceeds taxable as a Entertainment. Are movie tickets taxed?

The point is that Al III and his confederates sent the town down the sales tax path. But, there are other revenue paths that might be explored, and Big Al would have at least considered them - well, maybe not the tax on legal services.

-- Posted by semowasp on Sat, Jan 4, 2014, at 6:27 AM
Hey spaniard,are the same "tards" to blame for that boom town of Cairo? That place is a "libtards" perfect vision of how unlimited welfare can lift the poor folks up.

-- Posted by rocknroll on Sat, Jan 4, 2014, at 10:30 AM
Jack Smudge: I think you meant to say 10,000 baby boomers a day instead of 10 million.

-- Posted by left turn on Sat, Jan 4, 2014, at 12:47 PM

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