Oct. 30, 2024

In the wake of Hurricane Helene, we are heartened by the incredible grit, gumption, and resolve of our Appalachian community. As we support our community’s commitment to recover and rebound, each of us has a role to play in building a stronger future together. Explore Asheville and the Buncombe County Tourism Development Authority’s role is to shine a spotlight on this creative community to support economic vitality for small businesses and neighborhoods to prevent an economic disaster on the heels of a natural disaster. We are working with our partners to understand their needs on the ground and to maintain jobs for residents in Asheville, Buncombe County, and the broader Western North Carolina region.

Alongside our partners at U.S. Travel Association, Visit NC, and Tourism Economics, history shows that most destinations recover from named storms within a year. Visitor spending recovery in Puerto Rico and New Orleans took two and four years, respectively. Given our region’s terrain and the failure of our city’s water system, our comeback is facing distinct challenges.

Asheville is opening in stages and pockets. Reopening milestones throughout the community gives us hope and is aligned with their requests for us to begin welcoming back customers respectfully and in tune with our community, when and where it’s safe to do so.

Takeaways from the October board meeting include:

• A forecast reducing net revenue projections by $10.1 million to $24.2 million from $34.3 million based upon Tourism Economics data;
• September lodging occupancy and demand;
• Hurricane Helene recovery response initiatives Love Asheville From Afar, the Always Asheville Fund, and Concert for Carolina;
• Supporting merchant Recovery and reopening messaging, the Visit NC Travel Advisory Map, and the new Explore Asheville website;
• Business continuity efforts and recovery resources;
• Tourism Product Development Fund, Legacy Investment From Tourism Fund, and Festivals and Cultural Events Support Fund updates.

Explore Asheville and the authority will continue to support the recovery of small and local businesses and our community in the months and years to come, and we hope that you join us in that effort.  

Staff shared a revised net lodging tax revenue forecast of $24.2M and Buncombe County administrative fee of $1.3M, based on data from Tourism Economics. This revision is approximately $10.1M lower than the original FY25 net revenue budget. Before the storm, merchants and business owners were already reporting weakened sales and counting on a robust fall season.

Lodging tax collections are forecasted to decline nearly 30% for FY25, reaching their lowest levels since the pandemic in FY20. Year-over-year monthly declines of 40% to 45% are anticipated, gradually easing throughout the fiscal year. Lodging tax is a barometer for the economic well-being of the rest of our economy because 70% of visitor spending takes place in a wide variety of businesses outside of lodging.

The new net revenue forecast of $24.2M includes a $16.2M operating fund, with $4M allocated to both the Tourism Product Development Fund (TPDF) and Legacy Investment from Tourism (LIFT) Fund per state legislation. 

Given board direction, staff will work with the finance committee on a revised budget for the board to consider at the November board meeting.

September hotel occupancy was down eight points from 2023 and 16 points from 2019. Vacation rental occupancy was down two points from 2023 and seven points from 2019.

September hotel demand was down 10% from 2023. Vacation rental demand was down 3% from 2023.

Explore Asheville has been actively supporting our community’s recovery through several initiatives, from launching the Always Asheville Hub to keep residents and visitors informed to creating new ways for anyone to support our local businesses and creatives.

Nearly 650 merchants, makers, and area businesses have joined Love Asheville From Afar, a new shop-and-support website developed in partnership with the Asheville Downtown Association, Go Local Asheville, ArtsAVL, Asheville Area Chamber of Commerce, Asheville Independent Restaurant Association, MADE X MTNS, Mountain BizWorks, and JD Ellison & Company. This e-commerce site builds on a framework established during the pandemic, reduces barriers for businesses to engage, and supports them wherever they are in their recovery.

This initiative will provide emergency grants—not loans—to help sustain Buncombe County’s small and local business community. FEMA reports that 40% of small businesses do not reopen after a disaster, and this effort aims to buck that trend. With more than $750,000 available, applications will open from October 31 to November 11 for microgrants of $5,000 to $10,000 to support front-facing Buncombe County businesses in their reopening.

Explore Asheville had been discussing partnership opportunities with Luke Combs' team for months. Within a week of Helene, Explore Asheville and the authority pledged $1 million from our operating budget as the presenting sponsor of the Concert for Carolina.

More than 100 tickets were reserved to host Asheville and Buncombe County first responders and their families in Charlotte, and Asheville’s creative spirit was present at the concert through an Asheville Goods partnership showcasing local area makers. Additionally, 625 residents attended a free community livestreaming event at Thomas Wolfe Auditorium.

All proceeds—$24.5 million to date, including our sponsorship—are being directed to Eblen Charities, MANNA Food Bank, Samaritan’s Purse, Second Harvest Food Bank of Northwest North Carolina, and Eric Church’s Chief Cares Foundation to further support Western North Carolina recover.

A new benefit concert was announced yesterday, replacing the annual Christmas Jam held at the ExploreAsheville.com arena. Dave Matthews Band, Nathaniel Rateliff & the Night Sweats, Warren Haynes Band, and Goose, among other special guests, will perform at Madison Square Garden on November 24. Explore Asheville signed on as a $250,000 sponsor, with 100% of the proceeds returning to our area through the Always Asheville Fund to support small travel and hospitality businesses.

As our region is in varying stages of recovery from recent weather impacts, the state’s travel advisory map has evolved in line with NCDOT data and other factors. Staff have worked closely with state officials to track and communicate travel restrictions and reopening statuses based on NCDOT criteria, including road status, electricity, running water, and open businesses. Upon DOT approval, Buncombe County’s status moved from red to yellow on October 19, reflecting progress in our area.

This change comes as we see encouraging signs of recovery throughout the community:

• Biltmore announced a reopening date of November 2
• Local merchants in downtown Asheville began reopening their doors on October 20
• The North Carolina Arboretum reopened its gates on October 28
• River Arts District galleries and businesses are planning a special reopening celebration for November 9-10

Explore Asheville launched a redesigned website featuring the Helene-initiated Always Asheville Hub prominently on the homepage to effectively communicate business statuses to the public.

Messaging is continuously updated to let visitors know that progress is being made slowly, surely, and safely. Explore Asheville encourages visitors to support open local businesses in high-impact areas with care, patience, and careful planning.

Buncombe County is capturing public and private property damage through this form. This assessment will be used to push for more federal funding.

Grants for Small Businesses

• Explore Asheville - Always Asheville Fund | $750,000 available, $5,000 - $10,000 award | Application to be released Thursday, October 31
• Dogwood Health Trust & Appalachian Community Capital - Western North Carolina Small Business Initiative (WNCSBI) | $10 million available | Application to be released October 30
• Preservation Society of Asheville and Buncombe County - Brick and Mortar Grants | $500 - $5,000 award | Application
• Asheville Chamber of Commerce - Mountain Strong Fund for Business Recovery | In Development

Grants for Arts & Culture Businesses

• National Independent Venue Foundation - National Independent Venue Relief Fund | $25,000 max award | Application
• The NC Arts Foundation – NC Arts Disaster Relief Fund | In Development

Grants for Nonprofits

• Community Foundation WNC – Emergency and Disaster Response Fund | $25,000 - $50,000 award | Application
• United Way of North Carolina - NC Disaster Relief Fund | $10,000 max award | Application
• Community Foundation WNC – WNC Long Haul Recovery & Resilience Fund | In Development

Business Disaster Loans

• Mountain Bizworks - WNC Strong: Helene Business Recovery Fund Loan Program | Up to $100,000 per loan | Application
• Golden Leaf Foundation – Small Business Loans (NC General Assembly passed on 10/24) | $50 million available | In Development
• SBA - SBA Disaster Loan | Application

Grants for Hospitality, Food & Beverage Workers

• NC Restaurant & Lodging Association - NC Hospitality Workers Relief Fund | Application

Grants for Artists

• Center for Craft - Craft Futures Fund | $500 max stipend | Application
• ArtsAVL - Emergency Relief Grant | $500 max stipend | Application
• RADA Foundation - River Arts District Hurricane Helene Relief Fund | $300 max stipend | Application
• Asheville Fringe Festival – Artist Relief Fund | $250 max stipend | In Development
• Adolph and Esther Gottlieb Foundation - The Adolph & Esther Gottlieb Emergency Grant | $15,000 max award | Application
• The NC Arts Foundation – NC Arts Disaster Relief Fund | In Development

A full list of up to date resources can be found on the Always Asheville Hub.

Five applicants were under consideration for the second phase of the 2024 TPDF cycle. The October TPDF Committee meeting was postponed giving applicants time to reassess their proposed projects. The 2025 LIFT Cycle is postponed until staff can assess the status of current projects and can recommend a path forward.

Staff presented updates on three TPDF-invested projects:

• John B. Lewis Soccer Fields: The buildings were flooded, but the structures remained intact. The fields suffered significant damage, and all goals were lost. The City of Asheville is assessing the full extent of the damage to determine a path forward.
• Asheville Municipal Golf Course: The first nine holes were destroyed, with significant damage to the irrigation system at hole 9. The City is committed to only using the first nine as a debris site if it becomes absolutely necessary. The back 9 have been opened to the public. The City estimates it will cost $7M to repair the historic course. 
• Woodfin Greenway & Blueway: The coffer dam in the photo above remains 90% intact, with all equipment and most materials in good condition. The Town of Woodfin is coordinating with their engineers to determine when construction can resume.

To allow event organizers time to reevaluate their plans, the Festival & Cultural Event Support Fund application process is postponed until January 2025 for events from April 1 to December 31, 2025. Events before April 1, 2025, can still access support through the Event Sponsorship program.

MORE INFORMATION & NEXT MEETING OF BCTDA

Read the Q1 Updates towards Strategic Imperatives HERE >>

Find documents from the October 30 board meeting HERE >>

THE NEXT BCTDA BOARD MEETING
Thursday, November 21 | 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