Jan. 30, 2025

Yesterday, the Buncombe County Tourism Authority Board of Directors approved a budget amendment due to the devastating impacts from Helene, an estimated $11.5 million shortfall in lodging tax revenue, resulting in a reduced operating budget of $25.7 million for FY25. After several years of accumulating a contingency fund balance, the authority is fortunate to have the financial resources to invest in marketing and messaging to aid in the comeback of Asheville and Buncombe County’s economy.

When Helene hit, Explore Asheville ceased all paid advertising for a month and shifted efforts toward meeting the immediate needs of our community. Through the establishment of the Always Asheville Fund, we have awarded more than $1.53 million to nearly 400 local travel & hospitality businesses within 4 months of the storm. These funds and the return of visitor spending are expected to increase through more inspiring events and promotions, creating a drumbeat to spring. Now, more than ever, we continue to shine a spotlight on Asheville’s people and places — and invest our way to recovery and revival.

Takeaways from the January 2025 board meeting include:

• Welcomed Asheville Vice Mayor Antanette as an ex-officio non-voting member;
• Buncombe County presented a series of financial reports and clarified questions about the collection of their administrative fee;
• December lodging occupancy and demand;
• End-of-year lodging performance report detailing year-over-year hotel and vacation rental metrics, as well as performance in comparable markets;
• Highlights of Q2 Business Development, Marketing, Partnership, and Culture efforts and achievements towards Explore Asheville's Strategic Imperatives;
• Business development performance report on the first half of FY25.

On February 12 at A-B Tech Ferguson Auditorium, we are convening partners from within and outside our community to share stories and information on how we can move forward together during The Year Ahead: The Road to Recovery Revival. A business resource session with the City of Asheville will follow. We hope to see you there! 

This week Asheville’s Vice Mayor Antanette Mosley joined the BCTDA Board as an ex-officio member appointed by the Asheville City Council. Mosley has served on council since 2020 and brings a wealth of local heritage to her role, as her family has called Asheville home for more than five generations.

Buncombe County Presents Oct.–Dec. Financial Reports
Provides Clarity on Administrative Fee Collection

A healthy discussion followed Buncombe County financial reports from October to December, along with clarifications regarding the County’s collection of administration fees from the BCTDA. The finance committee is committed to enhancing these processes and agreements as they work towards developing the fiscal year 2026 budget.

After reviewing the lodging revenue forecast shortfall of $11.5 million in the wake of Helene and staff recommendations for expenses, finance committee leadership focused on the role of travel and hospitality as the front line of economic recovery for our community. The authority finds itself in a strong financial position to invest in our economic recovery through marketing and messaging to inspire the return of visitors, groups, and events.

Based on the committee’s recommendation, the board approved a budget amendment reducing the operating fund revenue budget by $7.7 million and the operating fund expense budget by $1.6 million. The revised $25.7 million operating budget reflects an anticipated $10.5 million investment from the fund balance. This amended 6-month contingency plan sets the runway for FY26 budget planning and the potential to draw from the fund balance again.

December hotel occupancy was 70%, up four points from 2023 and one point from 2019. Vacation rental occupancy was 48%, down eight points from 2023 and 2019.

December hotel demand was up 6% from 2023 and reached its highest point in recent record. Vacation rental demand declined 23% from 2023. As a result, total lodging sales tax collections for December were down 34%.

Helene impacted Buncombe County lodging performance, but the overall impact has been obscured by moderate growth over the past five years:

• Revenue Per Available Room (RevPar), the hotel industry’s overall health barometer, dropped 13%. Except for the extreme impact of COVID-19 in 2020, RevPar hasn’t been this low since 2014.
• From 2023 to 2024, the average number of hotel rooms available per night increased by 1.5%, while vacation rental rooms decreased by 4.4%.
• Coming through the pandemic, vacation rentals were on the rise in Buncombe County, while hotels were much slower to rebound. But, in the wake of Helene, we’re seeing a different effect. Housing emergency workers and displaced residents supported the area hotel market. At the same time, vacation rental performance, already impacted by a saturated market, suffered widespread cancellations throughout the fourth quarter.
• The number of Asheville hotel rooms available per night lost to Helene was partially offset by the opening of several new hotels in late 2023 and early 2024. Vacation rental supply in Buncombe County appears to be lower, as properties were taken offline after Helene due to reduced demand and possible damage.

Asheville and Buncombe County remain competitive among comparable regional markets

• Asheville finished the year with the 4th highest hotel occupancy and the 2nd highest ADR and RevPAR among the nine comparable markets, despite Helene.

Most visitor spending—nearly 70%—takes place outside of lodging facilities in local businesses like restaurants, shops, tour providers, art galleries, attractions, etc. In 2023, the proportion of spending in beloved restaurants and bars is comparable to the expenditures made by visitors on lodging.

• 2025 is off to a strong start. Lower rates of inflation, falling interest rates, and solid household finances are expected to maintain healthy travel demand for the first part of 2025, but policy uncertainties associated with the new administration are a concern.
• Business travel recovery is expected to continue. Tourism Economics forecasts 4.2% growth in business trips for 2025 and a full post-Covid recovery finally anticipated in 2026. Business travel spending likely surpassed 2019 levels for the first time in 2024. Group business travel is expected to be stronger than transient business in 2025.
• Leisure travel is anticipated to continue steady growth. Demand for leisure travel and travel services are expected to grow as inflation cools. This is important as 93% of Asheville and Buncombe County visitors come for leisure.
• International travel is forecast to be healthy in 2025. However, the threat of geopolitical turmoil and U.S. policy uncertainties may weaken expectations for inbound travel to the U.S. until 2026, the year of the North American Men’s World Cup.

Last quarter, Explore Asheville shifted its focus significantly toward crisis response and recovery from Hurricane Helene. Initiatives like the Always Asheville Travel Hub, "Love Asheville from Afar," and the "Be Part of the Comeback" campaign were launched to update visitors on our community’s recovery, support Asheville's creative spirit, and return with heart. Business development efforts successfully combined emergency response support with a significant 71% increase in hotel roomnights booked compared to the same quarter last year. The Always Asheville Fund was established, providing $1.53 million in emergency assistance to nearly 400 travel & hospitality partners through donations and events like the Concert for Carolina, the SOULSHINE Concert, and the Cooks for Carolina New Orleans dinner series. Legacy projects, including the second phase of the Black Cultural Heritage Trail, continued to progress.

Immediately following Helene, the Business Development team coordinated with local lodging partners to arrange shelter for first responders, enabling service providers to concentrate on emergency response efforts during a critical time for our community. In addition to supporting recovery on the ground, staff living through the repercussions of Hurricane Helene traveled to trade shows and meetings to share news personally with our industry and encourage new groups to book Asheville and support the region’s economic recovery into the future.

Comparing year-over-year data, Hurricane Helene resulted in a net loss of $2.7 million in direct spending within the local economy. A total of 79 confirmed meetings and groups were canceled. Despite these challenges, the Business Development team successfully booked more than 64,000 roomnights, exceeding its targeted goal by 20,000 roomnights.

In the first half of 2025, 120 business groups are confirmed to visit Buncombe County. These groups and events are expected to generate $34.1 million in direct spending for the local economy, along with 31,000 roomnights. Some of the upcoming events aligned with overall economic development goals include:

Explore Asheville has expanded its relationship with the Southern Conference to sponsor the SoCon Wrestling Championship which will be held at Kimmel Arena on the campus of UNC Asheville, March 7-8, 2025. This returning event will coincide with the Ingles SoCon Basketball Championships, which also takes place in Asheville, March 6-10, 2025, at Harrah’s Cherokee Center – Asheville.

• ExploreAsheville.com Arena, which the TDA has invested $7 million in capital improvements
• March 7 – 10, 2025
• Direct Spend: $9,868,000
• Roomnights: 3,000

• UNC Asheville’s Kimmel Arena
• March 7 – 8, 2025
• Direct Spend: $388,000
• Roomnights: 180

Join Explore Asheville, the Buncombe County Tourism Development Authority, and industry colleagues as we reflect on our community's progress and explore new collaborations for a stronger Asheville and Buncombe County.

The event features three panel discussions on creative economy recovery, sustainability, and transportation, with local leaders and national experts. We will also honor the 12th Annual Explore Asheville Superstars for their dedication during challenging times.

After the program, James Shelton from the City of Asheville will lead a session on the CDBG-DR program, providing resources for business owners. Come early or stay late to network while enjoying treats from Rabbit Hole and Summit Coffee.  

MORE INFORMATION & NEXT MEETING OF BCTDA

Find documents from the January 29 board meeting HERE >>

THE NEXT BCTDA BOARD MEETING
Wednesday, February 26 | 9–11 a.m.
Explore Asheville | 27 College Place | Asheville
Details to be posted HERE >>

Delivering Balanced 
& Sustainable Growth

Encouraging Safe & Responsible Travel 

Engaging & Inviting More Diverse Audiences

Promoting & Supporting Asheville's
Creative Spirit