Townsend Considers Lodging Tax to Boost Local Tourism
TOWNSEND, Tenn. (WVLT) – Visitors to Townsend may soon see higher lodging costs, as city officials consider implementing a hotel/motel tax aimed at supporting and enhancing local tourism.
City leaders are exploring a 3% lodging tax that could generate an estimated $500,000 annually. City Manager Gayla Webb said the town is missing out on potential revenue, noting that Townsend currently leads the state in lodging sales among cities without such a tax.
The proposed tax would apply to overnight accommodations, including hotels, motels, and cabin rentals.
Scott Shelton, manager of the TallyHo Inn, said he supports the idea of bringing more money into the community.
“It can be used to bring more business into the area,” Shelton said.
According to Webb, the funds generated from the tax would be reinvested in tourism-related projects. One priority is Special People’s Park, which is currently closed due to maintenance needs. The city also hopes to use the revenue to improve river access, a key attraction for visitors.
However, Shelton expressed concern that the tax could impact travelers’ decisions.
“Everything is increasing in price and people are watching how they’re spending,” he said. “When you add a 3% increase on their lodging budget, for some people, it could be a make-or-break deal.”
Still, Shelton said he remains open to the idea and would like to see more analysis before a final decision is made.
“A new tax isn’t necessarily a bad thing,” he said. “I would just like to see more of an impact study on how it’s going to affect tourism in the area.”
If approved, Townsend would join other Tennessee cities already collecting a lodging tax. City officials believe the added revenue would benefit both visitors and residents.
The second reading of the ordinance is scheduled for September 16 at 7 p.m., during which a public hearing and vote will take place.
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Source: wvlt.tv