The Isle of Palms might be able to use some of the money it has been sending to the Charleston Area Convention & Visitors Bureau for tourism-related projects on the island.
At the IOP Council’s Feb. 28 meeting, Mayor Phillip Pounds suggested that it’s possible the city could use a one-time budget proviso to redirect a portion of the more than $1 million a year IOP funnels to the CVB. The money is part of the “30%” pot generated by the 2% accommodations tax the state collects on short-term rentals.
“We need to be strategic in what we ask for and when,” Pounds said.
When Jimmy Ward suggested that it might be too late to request the money during the current budget cycle, John Bogosian responded that the city’s lobbyists in Columbia had informed him that that is not the case.
“They said we don’t need a detailed plan. Just give them a project name and a cost estimate. They’ll take it from there,” Bogosian said.
“We’re not asking the state for money It’s our money. All we’re doing is reallocating our funds,” Jan Anderson added.
Bogosian’s motion to request $400,000 for an island-wide walkability study and construction of multiuse paths, sidewalks and crosswalks passed unanimously. Other options provided by city staff included public dock rehabilitation, projects identified in the city’s Comprehensive Drainage Master Plan and Front Beach beautification.
Revenue from the 2% tax is sent to the state, which skims a small amount to send to counties and municipalities that don’t have much in the way of short-term rentals. The remainder is returned to the entity where it was collected, which gets to keep $25,000 plus 5% with no strings attached. 65% of what’s left must be used for tourism-related purposes, and the remaining 30% has to be sent to a nonprofit organization that uses the money to attract tourists to the area.
All the towns and counties in the Lowcountry send their 30% money to the CVB except Folly Beach, which created its own destination marketing organization in 2004. IOP sent the CVB $123,185 in 1997; that number has grown to an estimated $1.15 million in 2023.
At the Feb. 28 meeting, the Council asked City Attorney Mac McQuillin if state law would allow the city to set up its own DMO, as Folly Beach did nearly two decades ago. He said according to a May 31, 2022, letter from Assistant Attorney General Elinor V. Lister, “a local government is only authorized to create an organization when one does not already exist.” The opinion was requested by Edward W. Riggs, chairman of the Tourism Expenditure Review Committee, which reviews accommodations tax expenditures to make sure they comply with the state law.
Based on the letter, McQuillin told the Council: “Our hands are sort of tied there.”
Rusty Streetman took the opportunity to laud the accomplishments of the CVB, pointing out that “you see all these airlines coming into Charleston. A lot of that was through a lot of effort that was done through the CVB. Charleston is recognized as a destination throughout the world.”
Ward noted that some local residents are concerned about the city’s return on investment with the CVB, and Pounds pointed out that IOP’s energy might be better spent trying to convince state legislators to change the law, “maybe capping at a dollar amount the number sent to CVB.”
IOP apparently will soon benefit from some of the 30% money because the city is hiring a public relations and tourism coordinator and sharing the cost of the position with the CVB.
