Several hotel owners are reacting to Mayor Mike Huether and Finance director Tracy Turbak compiling a Review Committee to assess the Sioux Falls Convention and Visitors Bureau Business Improvement District (BID) program.

The concern among several hotel owners is in the way the board was formed and the small number of those with specific Hotel experience being on the committee.

Sioux Falls hotel owners have voluntarily agreed to a two dollar per room tax, financing the Convention and Visitors bureau BID program, to acquire conventions and promote tourism.  They also have the power to collectively opt out.

Turbak explains the review committee.  “We thought it would be prudent to collect a group of folks to take a look at the priorities for going forward into the future.  Not that there’s any particular burning concern, but it seems prudent to re-evaluate periodically the direction we’re headed and determine if any changes are needed."

Paul Hegg, whose group owns The Courtyard by Marriott, Spring Hill suites, and 2 Hilton properties says the review is fine, but is concerned in the way it was brought about.
“You know I’m not sure I agree with how the process is being handled in that the committee was announced at the last minute without us being aware this was happening, or the BID board being aware it was happening.  Closed door meetings on top of it all allows me to be a bit suspicious.  It will be 'wait and see what the results are.'  We're all for trying to drive (business) to Sioux Falls and put more heads in beds, more individuals on the streets visiting restaurants and spending money at retail locations.  That's what the BID is for, but if it goes toward other things that are not going to drive that business, I think we're going to have some pretty grave concerns at that point.”

Shailesh Patel, who owns 4 hotels including the Hampton Inn, Baymont Inn, and Microtel asked to be on the committee, but was told it had already been formed. He is concerned that there are no hotel owners on the committee.

Jan Grunewald with The Ramkota says money the hotels are voluntarily providing to promote Sioux Falls has been successful and needs to continue with the same focus and spending. “We have the Convention Center and we have no business not trying to keep that full.  All of us benefit then.  That’s what those dollars are for, to promote our community, everything we have to offer and these venues.  It’s expensive.”

Turbak says the committee can bring a lot of experience and insight.  “I think we all have the same desire in mind and that’s to continue to grow the visitor industry in Sioux Falls and there’s a lot of different ways it can happen.  Collectively this group of folks can bring a lot of great ideas to the table.  If we can find ways to improve upon that, even better.”

Both Gunewald and Patel commented on the benefits of the Convention and Visitors Bureau bringing people to Sioux Falls since its inception five year ago.   They've seen first hand how they city has drawn visitors due to the Bureau's marketing.

The date for the committee review meetings has not been released.

 

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