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Out of state advertising driving up hospitality fees collected
Posted: 06.15.2011 at 5:52 PM
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During the summer one of the most popular places for tourists to visit in Myrtle Beach is the downtown area. For the past 65 years The Gay Dolphin has sold keepsakes for families who visit. Overall this year, sales are up.

"It's been very up and down. We had a very great spring it's been fairly slow the last two weeks, the traffic has been tremendously good," said Buzz Plyer, owner of The Gay Dolphin.

Plyer goes on to say the teens that are in town right now don't typically stop by his gift shop.

So far $8.8 million worth of hospitality fees - which are charged at hotels, restaurants, and entertainment - have been collected since May of last year through April of this year. That's up from $8.7 million the previous 12 months.

The one cent sales tax imposed by the City of Myrtle Beach in 2009, helps fund advertising. That's about the same time hospitality fees collected began increasing after a five year decline.

Brad Dean with the Myrtle Beach Area Chamber of Commerce said the fee collections are growing faster than they expected, "What it shows is with the additional advertising the new attractions, the boardwalk, we're starting to see spending increase. That's great news for the entire Grand Strand economy."

"High accomodations tax would be expected with great crowds. It'll be interesting to see what the total sales taxes reflect they haven't been spending as well," added Plyer.

Both Dean and Plyer agree increasing advertising has a direct affect on the number of tourists coming to the area.

"In many cases it's the first time visitors who have never been here so they've got a whole new selection of attractions, entertainment, retail, dining options," added Dean.

The Chamber is spending $24 million this year advertising Myrtle Beach in and out of state, in Canada, and Europe.

Dean said they are targeting first time visitors with the hopes they'll come back again and eventually become real estate buyers.

The hospitality fee numbers will likely go up since the city still has to include the final numbers from May.

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