2009 receipts for Cape hotel, restaurant taxes still rise over previous year

After a two-month drop off in reservations at the Rose Bed Inn, business at the bed and breakfast is booming once again.

"For a few months it was getting slim, and then, all of a sudden, that unfamiliar tone of the phone started ringing again with people booking reservations," chef James Coley said. "We always knew from when we opened in 2001 that if you turn the nearly blank reservation page and things look bleak, if you provide quality goods and services they will come.

"And that's what's happened," Coley said.

Pam and Vere Marr, of Tekamah, Neb., stop at the Cape Camping and RV Center for a few days in Cape Girardeau while traveling to Des Moine, Iowa. Both are retired and travel in their RV year 'round with their dogs Bow, Lily and Little Bit. (Elizabeth Dodd)

Cape Girardeau saw an increase in its hotel-motel sales tax receipts for the 2009 fiscal year, though the increase pales to those of the past three years.

City hotel-motel sales tax receipts in the 2009 fiscal year, which ended June 30, rose 1.69 percent from the previous year while restaurant receipts rose 3.68 percent. The overall increase in receipts was 2.98 percent.

The last time the city saw such a small rise was in 2005, when the combined increase was 1.51 percent. That included a 1.29 decline on the hotel-motel side of the ledger.

Chuck Martin, executive director of the Cape Girardeau Convention and Visitors Bureau, said the decrease was because the Holiday Inn was demolished and out of business while the Holiday Inn Express was being constructed.

"When you think of it, that was nothing short of remarkable we were down only 1 percent for the year," Martin said. "We had 100 rooms taken out of the inventory, which definitely hurt our capacity."

The next year, hotel-motel receipts increased by 15.17 percent.

Joel Neikirk, vice president of operations for MidAmerica Hotels, said while Holiday Inn Express has fared better in the recession than other properties the company owns in the state, he admits the effects could one day be felt in Cape Girardeau.

"We've been pretty fortunate at our hotel here, as the hotel industry has held its own with the recent storm refugees and sporting event participants and spectators that have filled up our rooms," Neikirk said. "But it will be hard to duplicate the capacity that we've had.

"But we're still going strong at our hotel," he said. "The sporting events on the weekends and business meetings during the week are keeping us full."

Martin said the 2009 fiscal year was the most economically challenging he's experienced in Cape Girardeau since he became executive director of the visitors bureau in 2002.

"Given our current economic climate, I felt finishing in the black was very positive," Martin said. "None of us saw our economy going into the recession that it has experienced. But we'll put all our energy and resources to make sure we promote the city the best we can."

Martin said the convention and visitors bureau through advertising and brochures has helped or will help promote such attractions and events as the Tour of Missouri, the Glenn House, the Southeast Missouri State University River Campus, the Show Me Center, the American Junior Golf Association Rolex Tournament, teen sports tournaments and the downtown murals.

"The Tour of Missouri in particular will have a huge impact on not just our economy but for leaving a good impression on the city for future tourism efforts," Martin said. "We're confident thousands will come in our area and enjoy a high-quality event."

The convention and visitors bureau also plans to use up to $145,000 approved during Monday's Cape Girardeau City Council meeting for additional tourism purposes. The funds come from revenue from the hotel-motel and restaurant tax, Martin said.

"A lot of people have no clue that we fund these type of attractions through that tax," Martin said. "But that tax helps us promote the area to our visitors and improve the quality of life for our residents."

The Discovery Playhouse will receive matching grants for up to $68,000 raised by the children's museum. Martin said this will assist the Discovery Playhouse with hiring staff and establishing exhibits.

Other uses of the funding are $15,000 for placement of six billboards along Interstate 55 and one billboard at the foot of the Mississippi River bridge in East Cape Girardeau, Ill.; a sponsorship of $20,000 for Cape Girardeau's Tour of Missouri stop; $12,000 toward the production of a new visitors guide; $20,000 for a promotional DVD to hand out at events inside and outside of Cape Girardeau; and $10,000 to help maintain the Glenn House, the Red House Interpretive Center, Old St. Vincent's Church and the Cape River Heritage Museum.

Cape Girardeau Mayor Jay Knudtson said the convention and visitors bureau has broadened the scope of tourism in the city since it moved from direct oversight by the city to the Cape Girardeau Chamber of Commerce in 2002.

He cited this year's Storytelling Festival and the AJGA tournament as multiday events that boosted tourism.

"Because we are a regional hub, we must always continue to look for ways to expand and leverage this status," Knudtson said. "Making sure that we have the cash registers humming is essential for us to continue to offer the great quality of life that our citizens have come to enjoy and expect. Tourism is a huge piece that serves to supplement the daily revenues that are generated in our retail sector."

bblackwell@semissourian.com

388-3628

Pertinent addresses:

401 Broadway, Cape Girardeau, MO

By the numbers

Hotel-motel receipts

Year Amount Percentage change

05 $457,459.51 -1.29 percent

06 $526,870.35 15.17 percent

07 $563,949.12 7.04 percent

08 $591,480.55 4.88 percent

09 $601,482.26 1.69 percent

Restaurant receipts

Year Amount Percentage change

05 $873,330.54 3.04 percent

06 $942,792.00 7.95 percent

07 $1,031,485.69 9.41 percent

08 $1,090,830.96 5.75 percent

09 $1,130,958.68 3.68 percent

Total receipts

05 $1,330,790.05 1.51 percent

06 $1,469,662.35 10.44 percent

07 $1,595,434.81 8.56 percent

08 $1,682,311.51 5.45 percent

09 $1,732,440.94 2.98 percent

SOURCE: Cape Girardeau Convention and Visitors Bureau