As everyone knows by now, the Governor ordered bars restaurants and other places where people congregate to close. Today he added fitness centers and gyms, movie theaters, indoor water parks, trampoline parks etc.

Just last week, OACVB was discussing messaging with regard to COVID-19, and the idea was that members would promote local businesses. In just 4 short days, that idea has become impossible. Public spaces are being closed and other types of businesses—Shumaker Advisors included—are prohibiting visitors. These changes are happening across the country. And they are devastating small businesses and families.

To respond to the economic impact, roughly 30 business trade associations including the retail merchants, manufacturers, the Ohio chamber, and others have been working on ideas to mitigate the damage both short and long term.

One of the ideas was to suspend the lodging tax—on behalf of the OACVB members, we oppose that idea and have been very vocal over the last few days. The reasons are obvious:

  1. YOU CAN’T SUSPEND A TAX YOU CAN’T COLLECT BECAUSE NO ONE IS TRAVELLING.
  2. Destination Marketing Organizations rely on the money for most or all of their funding.
  3. Lodging taxes are used to promote a region and in turn raise more lodging taxes. The incentive is tied directly to the mission.
  4. Suspending tax collections or “Tax Holidays” are designed to encourage behavior. The President and Governors are discouraging travel. A bed tax holiday is counterintuitive to the current mission of elected leaders which is to get people to stay home and break the spread of disease.

I am concerned that there is a group that is already trying to capitalize on this crisis. We will remain vigilant and take a wait and see approach. This could take several months to resolve and more ideas like this one will arise.

OACVB remains committed to promoting Ohio events, restaurants, hotels and attractions as soon as possible. In the meantime, we will continue to update members on developments.