Sedona Chamber of Commerce and Tourism Office We recently ended our tourism partnership with the City of Sedona. This is because local governments have not allowed destination marketing to resume. The move comes in the wake of November’s elections, in which the mayor and city council members voted, which was seen as a referendum on residents’ attitudes towards tourism.
“It got to the point where someone had to make a bold decision,” City Councilman Peter Fuhrman said. “The chamber pulled the trigger first.”
The non-renewal of contracts next fiscal year represents the broader narrative that many places are rethinking their spending on tourism promotion. Sedona’s tourism board is one of a list of entities that are under greater pressure from legislators and voters to direct funds toward destination management and other community goals. The recent Skift megatrend points to residents in many parts of the world no longer wanting to be on the sidelines of tourism.
Tourism boom, tourism slump
Two years ago, the Sedona City Council amended its contract with the tourist office to stop the tourist office from spending money on destination marketing.
Prior to the suspension, the agency spent $500,000 to $600,000 a year on marketing and advertising, according to Michelle Conway, CEO and president of the Sedona Chamber of Commerce and Tourism Authority. It attracted wealthy, long-stay visitors. But for the past two years, the company has only spent money on destination management.
Not everyone is happy with the move.
Sedona benefited from a surge in tourism in 2021, but business slowed last year.
Like other rural destinations, hiking and mountain biking destination Sedona faces greater competition now that the pandemic is over, international travel is open, and cities are once again attractive to tourists. is facing
In 2022, Sedona’s visitor numbers declined year-on-year. Meanwhile, direct competitors such as Jackson Hole and Napa Valley have not seen the same decline, eating up Sedona’s share, Conway said.
Many hoteliers are concerned. Currently, occupancy is down 6.5% from pre-pandemic levels. The average daily rate is declining.
A few years ago, hoteliers were among the most active stakeholders in calling for a 0.5% increase to the city’s 3% bed tax. This 0.5% of him was originally allocated specifically for tourism promotion.
Conway said 60% of the businesses, which are tourism-oriented, are now “suffering” and “needing help.” Some companies saw his revenue drop by double digits. In addition to the loss of visitor spending, business operating costs are above pre-corona levels.
The tourism board thought it was time to resume marketing the destination. Still, the Sedona City Council didn’t budge.denied the request Activate your marketing.
To properly support business people, the chamber had to be separated from the city, its officials said. We are confident that alternative sources will be found to support future marketing efforts.
2021: Turning Point
A sort of division between residents and the tourism industry appeared before the marketing pause.
Many locals aren’t happy with how tourism has changed their lives over the past five years, said resident and local vacation rental owner Ryan Casago.
According to Conway, 2021 was something of a turning point thanks to overtourism. Like other outdoor destinations during the pandemic, visitor growth has exploded in Sedona, rising from 3 million a year to 3.7 million in 2021, according to the Sedona Chamber of Commerce.
“We’ve been very successful,” Fuhrman says. “Tourists are starting to flock to Sedona.”
However, there were negative results.
Furman said the city’s road infrastructure “was reaching its limits.”
Traffic jams, long waits at restaurants, and bad habits from new outdoor enthusiasts hit the town of 10,000 people.
The influx of short-term rental properties has reduced available housing and changed the composition of communities. According to Conway, there are now more rooms in short-term rentals than there are in the hotel (2,800), adding to the anxiety of locals.
Affordable and available housing is becoming harder to come by for a large portion of the local workforce, Furman said.
In response to unprecedented tourism in 2021 and 2022, such stress on community, physical and natural infrastructure has been a common problem among destinations. What generally followed was a community questioning the value of promoting tourism. For example, in Jackson Hole, Wyoming, residents directly questioned the tourism board about the marketing discontinuation.
Destination marketing tactics, such as filling in the low season or promoting lesser-used trails instead of popular attractions, do more harm than good, Furman said. Lesser-known trails suffered from excessive capacity, for example, pushing tourist parking lots elsewhere.
“All of these decisions have the unintended consequence of angering locals,” he said.
difficult choice
The Chamber of Commerce does not yet have an alternative source of funding. Details about which funding model will be used to cover the bed tax losses have yet to be worked out, but the business community says the Chamber of Commerce is completely behind in whatever it does.
Conway said the Chamber will have to do “what it takes to survive” when the current contract ends on July 1. This will include cuts to operations and programs. There are cases. Details about who will be responsible for which destination management programs and projects are yet to be worked out, but the Chamber expects that schedule to be low.
Now that the deal is over, Conway is “thrilled” with new creative marketing opportunities. One of his areas of interest is expanding marketing to include the larger Verde Valley where Sedona is located. It highlights the diversity of the region’s towns, wine country and arts communities.
Meanwhile, the city council is considering hiring consultants to manage and mitigate tourism impacts internally.
“I don’t think we have a lot of energy to do destination marketing in the short term,” Furman said.
