June 29, 2022
| Greetings on behalf of the Buncombe County TDA |
The Buncombe County Tourism Development Authority's fiscal year wraps up this week on a high note. Although Asheville hotels and vacation rentals experienced a slight dip in occupancy – an impact of rising gas prices, according to travel sentiment research fielded by Longwoods International in mid-June – 91% of American travelers indicate they still plan to travel in the next six months.
And while they may choose destinations closer to home or reduce the number of trips, air travel to Asheville Regional Airport is up 71% year-to-date, on pace to exceed the peak year of 2019.
We invite you to read other insights from recent travel sentiment research below. We'll continue to watch these trends as we enter the new fiscal year on July 1 and adjust marketing plans as needed.
Following a public hearing at today's meeting of the Buncombe County TDA, board members approved the budget for FY23. It follows existing legislation that requires three-quarters of occupancy tax allocations to be used for tourism promotion and one-quarter for community capital projects.
As we publish this newsletter, a proposed bill filed June 1 by Senators Edwards, Daniel, and Mayfield is making its way through the NC General Assembly. House Bill 1057 (HB1057) would change the occupancy tax split to two-thirds/one-third, increasing funding for investment in community capital projects and decreasing funding for promoting Asheville and Buncombe County to visitors.
The Buncombe County occupancy tax provision passed the North Carolina Senate yesterday through HB1057. It was then read in the House and referred to the House Rules Committee. If the provision passes the House and becomes law, the BCTDA board will be presented a budget amendment in the July meeting that complies with the new law and its effective date.
These are long-awaited changes, for which local hotel leaders as well as Buncombe County Commissioners and our local delegation have advocated since long before the pandemic. We are keeping a close watch on this situation and will keep you informed.
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DESTINATION PERFORMANCE
| While Lodging Occupancy Cools, Airport Traffic Is Hot |
| Travel into & out of AVL on record pace |
Although occupancy rates were down slightly in May, there's still good news for our community and region, thanks to huge demands in air travel.
Hotel occupancy was flat from last May, down only one point, but seven points lower than the benchmark year of 2019. Vacation rentals, while down seven points from last year, were up six points from May 2019, still a healthy 64%.
These numbers suggest a slowing of the market; yet, passenger counts at Asheville Regional Airport are soaring, exceeding AVL's peak year in 2019.
MAY LODGING OCCUPANCY
LATEST TRAVEL TRENDS
| Gas Prices Driving Travel Choices |
| Silver lining: Americans still have plans to travel |
Even concerns about rising gas prices are not spoiling travel plans for Americans, according to the latest research on travel sentiment conducted by Longwoods International and Miles Partnership.
IMPACT OF RISING GAS PRICES
ON DECISIONS TO TRAVEL IN NEXT 6 MONTHS
As of mid-June, two-thirds of American travelers said rising gas prices will impact or greatly impact their decision to travel in the next six months.
IMPACT OF RISING GAS PRICES ON TRAVEL PLANS
Here's a look at the impacts rising fuel prices are having on travel planning: Taking trips closer to home is still the top impact, at 39%. Those saying they are reducing the number of trips they have planned is up three points from last month, to 39%.
There's also continued growth in factors involving reallocation of travel spending in order to make their trips happen, such as reducing the amount spent on retail purchases (34%) and reducing the amount spent on entertainment and recreation (31%). We will continue to monitor sentiment and watch for potential impacts on local businesses across the tourism sector.
TRAVELERS WITH TRAVEL PLANS IN THE NEXT 6 MONTHS COMPARISON
Despite inflationary pressures and concerns, there's a silver lining: Demand for travel remains at record highs with 91% of American travelers still indicating plans to take a trip within the next six months. Explore Asheville's marketing plans aim to ensure that we stay in the hearts and minds of travelers.
Travel Sentiment Study Wave 62
BCTDA OFFICERS NAMED
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| New Treasurer of the BCTDA Nonprofit Appointed |
| Chair & Vice Chair each continue 2nd year of service |
With the start of the new fiscal year on July 1, we welcome a new Treasurer of the Buncombe County TDA nonprofit, Matthew Lehman, General Manager of the Grand Bohemian Asheville. He replaces Leah Ashburn, President & CEO of Highland Brewing Company, whose term as a member of the BCTDA is expiring. Kathleen Mosher, Vice President of Communications for Biltmore, remains as Chair for the second year of her term, as does Vice Chair Brenda Durden, Chief Operating Officer for Asheville Hotel Group.
Kathleen Mosher
BCTDA Chair
Brenda Durden
BCTDA Vice Chair
Matthew Lehman
Treasurer of the Nonprofit
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UPCOMING NETWORKING EVENT
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Explore Asheville Summer Social
Tuesday, July 12
4:30–6:30 p.m.
Marquee | 36 Foundy St.
River Arts District
| Details & Register |
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| MORE INFORMATION & NEXT MEETING OF BCTDA |
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EXPLORE ASHEVILLE'S STRATEGIC IMPERATIVES
Deliver Balanced Recovery & Sustainable Growth | Encourage Safe & Responsible Travel |
Engage & Invite More Diverse Audiences | Promote & Support Asheville's Creative Spirit
| Follow Our Progress |
Established by state law to administer the occupancy tax paid by overnight visitors according to the enabling legislation, the Buncombe County Tourism Development Authority is a public authority with a public purpose to enhance the economic vitality of Buncombe County. It is led by 11 local, appointed volunteers (two of whom are ex-officio members) who provide professional expertise to ensure the effective use of the tax to benefit our community and the people who live here. BCTDA meetings are open to the public.
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