A Unique Perspective on Profiting from Tragedy

The 7 October 2005 edition of the Zeitgeist e-Zine

There are days I wake up with a rant...and then there are days I just sadly shake my head in disbelief. Today, it's the latter.

Louisiana Governor Blanco’s recent suspension of Sales and Room Taxes on her State hotels has me wondering what else (besides trying to save her political behind) is going on behind those vacant eyes.

I certainly understand her desire to "help" the displaced...but let's understand that the taxes she has just suspended are the very taxes that support the bonds on big tourism infrastructure programs like CajunDome and the marketing programs of the State's CVBs.

By suspending room taxes across her State, she is neutering the very Destination Marketing Organizations that she so desperately needs to get the word out that much of her State is OPEN for business. Let’s face it...it ain’t gonna be her news conference on CNN that’s gonna get people to return. If anything, most Americans see this individual as willing to do and say most anything to save her political stock from sinking any lower into the toxic sludge of the 9th Ward than it already has.

And yet, as New Orleans, New Orleans Northshore, Lake Charles and the other CVBs in the region get ready to begin welcoming the world back to their destinations, they'll be operating with a fraction of their normal budgets...which is a fraction of what they'll need.

This is further compounded by the fact that FEMA and Red Cross workers that are taking up the rest of the rooms in some destinations are already exempt from room taxes.

Hey Governor, if waiving a couple cents on hotel rooms is such a good idea to help those displaced by this year’s hurricanes...how come you’re not waiving retail sales tax, too?

Uh-huh...

But, the bottom line of this post isn’t to flame Ms. Blanco’s idiocy. It’s to suggest another way for the rest of us to lend a helping hand. And, I’ll be right up front...it’s not my idea. And it’s not an idea from one of our peers in the Destination Marketing industry.

It comes from Laurie Roberts, a columnist for the Arizona Republic. Last week, she wrote, “Hurricanes are good for Valley tourism. Visitors who a month ago were headed to New Orleans are instead booking flights to the Sonoran Desert, preparing to fling money into our economy.

“So why does it feel vaguely sickening to take it? Why does it feel as if we somehow slunk in under dead of night and spirited away the economic lifeblood of the Crescent City and the rest of the Gulf Coast?

“We didn't, of course. Yet here we are, striking gold...One region's loss, after all, is another's gain. But should it be?”


After explaining what this shift in business means to the residents of Louisiana, Mississippi and, now, Texas, she questions whether it is right to profit from others’ misfortune:

“So let's not. Let's not accept the bed tax and sales tax collections that come with Katrina's devastation. Let's send that windfall - the tax money our leaders weren't expecting and aren't counting on - to New Orleans and the Gulf Coast.

“(Scottsdale CVB CEO Rachel) Sacco said she'll explore the idea with local officials. I hope she does. It won't make much of a dent if Scottsdale is the only city to do it. But what if Scottsdale does it and Phoenix were to join in? And Las Vegas? And Dallas and San Antonio and every place that is, happily or not, reaping moola from misery?

“What if all those places decided to send along the taxes generated by Katrina's devastation to New Orleans and the coast?

“Call it seed money to begin again....Wouldn't it be something if we could help them get started?”


Cool idea. Are you in?

Bill

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