News

Local business owners fearful of increased hotel tax

By Tara Johnson, Published: July 26, 2012

With a decision on raising the Henderson County occupancy tax by a penny expected by Sept. 1, innkeepers told the Travel and Tourism agency that they oppose the increase.

Kaye Caldwell, owner of Clear Creek Cabins in Hendersonville, near Lake Lure, is very against increasing the occupancy tax.
"I think the increase in the hotel tax is a very, very bad idea," Caldwell says. "It will make our taxes 50% higher than Buncombe County, and we will see a definite decrease in reservations." She further rationalizes that fewer tourists will not only negatively impact the hotels and vacation rentals businesses in the area, but local shops and restaurants as well.
Jack Grup, owner of the Highland Lake Inn and Seasons Restaurant in Flat Rock, says he is just now forming an opinion on the new increased occupancy tax, as he is only now just learning the details of it.
"This all just came on very quickly," Grup says. "I just wish we could slow down all these changes so we could get a better understanding of them."
The occupancy tax increase was introduced on May 31 of this year, and went through twelve different versions between then and July 3rd, when it was adopted, giving those in the Henderson County accommodations industry very little time to voice their opinions or come to terms with the changes.
Henderson County Travel and Tourism Committee Representative, and owner of Kilwin's Chocolates in Hendersonville, Ken Butcher says he is neither for nor against the proposed tax increase going to the Flat Rock Playhouse.
"We all love the Flat Rock Playhouse," Butcher says. "But there should be a way to monetarily help them without increasing the occupancy tax."
The last time the hotel tax was increased was on July 1, 2010, when it was increased by one cent as well. Half of the 1% went to the Henderson County Heritage Museum, while the other half went to aid in projects for the Henderson County Travel and Tourism Board.
Butcher is of the opinion that the occupancy tax is already a bit steep at 5%, mentioning that a possible reallocation of where the hotel tax is currently going could be a viable option. With nothing set in stone at this time, many are grasping at straws to stop the bill completely or offer other alternatives.
A more in-depth meeting to discuss the occupancy tax increase is set to take place August 8th. This will include a look into the Playhouse's financial records, as well as allow Flat Rock Playhouse officials, Travel and Tourism board members and those in the local hotel industry to voice their opinions and concerns.