Jackson tourism task force weighted

A group tasked with helping Jackson County leaders decide whether to merge two separate tourism entities or possibly hike the room tax is dominated by people who work in the lodging industry.

Four out of the six members currently appointed to study the controversial issues are from within the lodging industry.

“We’ll be asking them for their opinions,” County Commission Chairman Jack Debnam responded when questioned on what, exactly, commissioners hope to gain from forming the subcommittee.

Merrily Teasley, owner of the Balsam Mountain Inn and one of the subcommittee members, noted that the group hasn’t met yet and so she wasn’t prepared to discuss specific issues. The lodging owner did emphasize, however, that she believes “tourism dollars are very important to Jackson County” in general.

The 3 percent room tax raised $440,000 in Jackson County in 2010. That money underwrites county tourism promotions. Tourism marketing efforts funded by the room tax are intended to bolster the entire tourism sector of the county, not just increase lodging.

John Bubacz, owner of Signature Brew Coffee Co. in Sylva and a member of the town’s Downtown Sylva Association, said there’s no doubt that most tourism dollars enter the county via hotels and motels. Still, excluding other business interests from such an important-to-everyone economic topic isn’t a good idea, he said.

“The opportunity for other voices” should have been entertained when forming a tourism subcommittee group, Bubacz said.

“I just think other industries should have the chance to be represented,” he said.

 

A tangled web of like interests

Two of the six committee members both work at the High Hampton Inn in Cashiers. One is Commissioner Mark Jones, and the other is his boss at the inn, Clifford Meads. Jones defended the makeup and membership of the tourism subcommittee, saying one “might just be surprised” by the objectivity of the lodging industry to, for instance, recommend if needed a higher room tax than is now levied.

The room tax is paid by tourists, not by the lodging entities themselves, but lodging entities have come out against an increase fearing it would deter tourists from staying in Jackson.

Asked about the criteria for picking committee members, Jones cited geographic location (an attempt to have all parts of the county represented) and marketing and promotion skills and experience.

Jones, in addition to working in the lodging industry, is chairman of Cashiers Travel and Tourism Association. As a result, Jones has found himself wearing two hats as the tourism debate has played out.

At county commissioner meetings, Jones would literally get up and leave his commissioners’ seat to address his colleagues at a central podium wearing his other hat as Cashiers’ tourism leader. Specifically, Jones has defended Cashiers amid discussions of whether a single tourism entity would serve the county better than two separate ones.

Not surprisingly, the Cashiers Travel and Tourism Association has vigorously resisted the idea of merging with the Jackson County Travel and Tourism Association. Cashiers’ tourism agency traditionally has isolated itself from larger tourism efforts in the county. That could change with the recent retirement of longtime director Sue Bumgarner, who drew criticism for not sharing marketing strategy or advertising campaigns.

Cashiers representatives sit on the board of the Jackson Travel and Tourism Association. No one from greater Jackson County, however, sits on the Cashiers board.

 

One county, one tourism board?

Debnam and County Manager Chuck Wooten have advocated for a single tourism entity, with both men saying that would allow for the development of a countywide strategic advertising plan and eliminate duplication of certain overhead.

Wooten said late last week that he plans on recommending the subcommittee designation take place with a little more formality and discussion than was the case during commissioners’ Feb. 6 meeting. Jones simply announced the people he had selected and did not identify them or their affiliations until queried by the news media following the meeting.

Wooten said he would suggest the matter be listed as an agenda item for the upcoming Feb. 20 commission board meeting.

 

Who’s been appointed?

A taskforce appointed by Jackson County commissioners are expected to examine whether county tourism efforts should be merged and possible look at a room-tax increase.

This new tourism subcommittee is made up of commissioners Jack Debnam and Mark Jones, plus Merrily Teasley, Balsam Mountain Inn; Clifford Meads, general manager of High Hampton Inn; Vic Patel, Best Western River Escape Inn And Suites; and Robert Jumper, tourism manager for Cherokee Travel and Promotion and chair of the Jackson County Travel and Tourism Authority. One more, as yet publicly unnamed member, will be asked to join, too, county officials said.

Has Maggie found its heroine?

Longtime Maggie Valley resident Alaska Presley has seen it all when it comes to Ghost Town in the Sky’s ups and downs.

Presley, now 88, and her late husband Hugh met R.B. Coburn, founder of Ghost Town, more than 50 years ago when he walked into a hotel that the couple owned in Maggie Valley and told them about his plans. It was the beginning of Presley’s connection to and love for the amusement park, which has spanned nearly two-thirds of her life.

Now, Presley is putting her own personal wealth on the line to rescue the shuttered theme park, and hopefully bring back the missing lynchpin in the Maggie tourism trade.

SEE ALSO: Resurrecting a ghost town

Presley knows first hand how important Ghost Town was historically in driving tourist traffic in Maggie. Presley, along with her family, has owned and sold a number of Maggie businesses throughout the years, including Mountain Valley Lodge, Holiday Motel and a trout fishing operation.

Ghost Town enjoyed decades of prosperity after R.B. Colburn conceived of the idea more than half a century ago. As a result, the town of Maggie Valley grew up around it, a string of mom-and-pop motels, diners and shops catering to the 150,000 tourists that once streamed into Maggie to visit the park.

However, the park began a long and steady decline in the 1990s. It began to show its age around the edges and was not well-maintained. The attractions grew dated, yet Coburn failed to add new amenities to cater to the changing tastes of modern tourists.

Ghost Town’s eventual closure in 2002 dealt a major blow to Maggie Valley’s economy, which continued to decline.

When a group of investors appeared and reopened the park four years later, they were seen as saviors. Business owners and leaders were willingly to help in anyway that they could as long as it meant that Ghost Town, once a economic boon for the town, would return for good. Businesses provided supplies on credit, from electricians and plumbers making repairs to hard goods purchased from oil companies to building supply stores — all under the assumption Ghost Town was a good cause.  Meanwhile, Maggie residents, including Presley, loaned money to the new owners in exchange for shares in the company.

However, the park fell into debt and filed for Chapter 11 bankruptcy in 2009. The park opened and closed several times as the owners struggled to get out of debt. But in the end, the park left a trail of $2.5 million in unpaid debt to small businesses and hundreds of thousands lost by helpful investors.

BB&T — which was owed $10 million by the new owners for the park’s purchase and later renovations  — filed for foreclosure. Eighteen months later, the foreclosure was finalized, and Alaska Presley placed her bid to buy Ghost Town.

Resurrecting a ghost town: Alaska Presley hopes to revive Maggie Valley by reopening the once-popular Ghost Town amusement park

Tears gathered in Alaska Presley’s eyes as she moved one step closer to attaining a Maggie Valley icon that has remained close to her heart but out of her possession for more than 50 years.

Surrounded by supporters, former Ghost Town employees and her lawyer, Presley, a longtime Maggie Valley resident, listened as a foreclosure attorney dryly recited the property boundaries of Ghost Town in the Sky, a once-popular amusement park in Maggie Valley. Presley was one of about 20 people who attended the public auction of Ghost Town on Feb. 10 outside the Haywood County Courthouse.

She is the only person who bid on the property at auction, offered $2.5 million for the property and its equipment. Competing buyers can file an upset bid for 10 days. Presley is now counting down the days until Feb. 20 to see if anyone places a counterbid.

Presley, 88, hopes to leave a functioning and profitable Ghost Town as her legacy to Maggie Valley.

SEE ALSO: Has Maggie found its heroine?

“Maggie Valley has some of the best people in the world,” she said. “And without Ghost Town, they have been having a very, very hard time.”

When the amusement park finally went up for sale, Presley just had to buy it. She said that a forever closed and abandoned Ghost Town is her “greatest fear.”

“Maggie Valley needs it,” Presley said. “I’m most interested in getting it going for the prosperity of Haywood County.”

However, Maggie residents are no longer quick to pin their hopes on the reopening of an amusement park that has been a continual cause for disappointment during the past decade.

 

Driven by her heart

Acquiring Ghost Town has been a long process and restoring the amusement park to its original glory will be a struggle all its own, which is why Presley began renovating it months before the foreclosure was finalized.

“This is the third time I’ve tried to help bring it back,” she said.

The to-do list is phenomenal. The rides and mock Old West town are decades old and in continual need of repair and upkeep, let alone the neglect they’ve seen since the park shut down three years ago.

Presley has already started touching up the buildings, which are quick to show their wear given the beating they take from the elements on the high-elevation mountain top.

Although she has made a few strides, there is still a lot of work to do and not much time to complete it before June, when she hopes to open at least a portion of the park.

“It has taken so long (to foreclose),” Presley said. “It’s kind of up in the air how much I can get done before the season.”

But, she does have a plan. Presley’s top priority is getting the chair lift and the incline railway working again. Tourists can only reach the mountaintop amusement park by the riding one of the two contraptions up the steep slope — but they have been in a seemingly perpetual state of malfunction in recent years.

Visitors would park in a large lot at the bottom of the mountain and ride either the lift or railway up to the park’s entrance. Neither are currently operational.

She has already purchased the parts needed to repair the incline railway, but it will still be about five months before it’s fixed, she said.

She must also assess the condition of the rides, particularly the roller coaster and drop tower.

“What’s good I’ll keep; what’s good I’ll refurbish,” she said, adding that she has yet to have anyone evaluate them, and some may not be repairable.

In the past, rides did not receive the proper care and maintenance. They looked rundown and often broke down. When Ghost Town briefly reopened five years ago, the kiddy rides and Wild West Town were up and running, but the roller coaster and drop tower — which attracted a more adult crowd — failed to pass state inspections. Although the previous owners attempted to repair the coaster, it only opened temporarily before it was once again deemed a safety hazard.

Next to the rides and cosmetic improvements, one of the biggest projects associated with the renovation is a overhauling of its water system. The previous owners did not shut off the water to Ghost Town after it closed, subjecting the full pipes to the mountain freeze-and-thaw cycle. The already aging system is now likely in desperate need of repair.

“That will be one of the worst things to do,” Presley said.

If she can overcome those hurdles and open Ghost Town for part of the tourist season, Presley can start earning revenue and hopefully move the park toward self-sustainability.

 

Bittersweet turn of events

People are cautiously optimistic about Presley’s endeavor.

“Only an Alaska Presley could ever get Ghost Town to run again,” said Waynesville Mayor Gavin Brown said. “She is a very sharp lady; she sees value there.  (But) In today’s market, in today’s world, I don’t see any value there.”

While people disagree about what, if anything, the amusement park is worth, Presley’s long history with Ghost Town and her wherewithal seem undisputable.

“If anybody can do it, she can do it,” said Teresa Smith, executive director of the Maggie Valley Chamber of Commerce. “I think she will definitely do the very best she can to get it up and running.”

Although the park has been closed for more than a year, the chamber still receives phone calls everyday asking if and when Ghost Town will reopen — an encouraging sign that if it is rebuilt, people will come.

“It encourages families to come here,” Smith said. “It would just be something else for people to do.”

But, the economy is still struggling, and gas prices continue to bounce up and down. Both are problems that have affected Ghost Town’s visitation numbers in the past and could influence its bottom line in the future as well.

“I think this go around those same worries are going to be there,” Smith said.

Town Alderman Phil Aldridge, who attended Friday’s event, said that residents are weary of anyone championing Ghost Town’s potential success after so many years of disappointments. Maggie Valley residents and business owners have had their hopes dashed before when investors promised to revive Ghost Town and bringing prosperity back to the valley.

But still, Aldridge leans toward the hopeful point of view.

Ghost Town was the “heartbeat” of Maggie Valley, he said. “It certainly can be again.”

When the amusement park profited, so did the town and county. In its heyday, 400,000 people visited Ghost Town each year, and families would pack into restaurants and motels along Maggie Valley’s main strip. Since the beginning of the recession and the park’s first closure in 2002, however, business in the valley has drastically declined.

 

Clock ticking

If Presley can’t open the park this season, it would cause “more damage,” she said. An open park means money to help cover upkeep and the employee payroll. It could also eventually mean more improvements — something already weighing on Presley’s mind.

“It needs to have some high-tech stuff,” she said, throwing out the idea of adding a zip line.

And, while some little boys still play cowboys and Indians, the Wild West theme has lost some of its luster now that the golden years of John Wayne and “Bonanza” are over.

“The western theme is passé now, and it needs the help,” Presley said. “The gun fights are good, but they are not enough.”

Although Presley was unable to provide more specifics regarding improvements, she estimated that the entire project will cost in excess of $11 million. And, she said she is not planning to take out any loans, adding that Ghost Town has had enough debt problems.

“Poor management and bad debts has plagued it for years,” Presley said. “A friend thought there was demons on that mountain; it has had such bad luck.”

So, for now, she will foot the bill herself.

“I have enough — to get started anyway,” Presley said. “I believe in paying as you go.”

Presley said she did not know how many employees she will need to reopen and operate the amusement park, but she has already hired Robert Bradley, a former gunfighter in the Wild West Town, to help with renovations and an armed guard to keep hoodlums off the property.

“It’s been vandalized pretty bad, but I got guards up there now, and I’ve got cameras all over the mountain,” Presley said.

Like Presley, Bradley has been around since Ghost Town beginnings.

“I started fallin’ off the roof in 1962,” he said, adding that Presley made him promise not to fall anymore now that he has passed 65.

Bradley, who has known Presley for most of his 67 years, is happy to help and anxious to get back to work as director of entertainment — his previously held title.

“I could probably put a show on next week,” Bradley said.

“Give us two hours,” chimed in Tim Gardner, a.k.a. Marshall Red Dawg.

While Ghost Town has been shut down, Bradley and some of the old band of entertainers from the Wild West Town have traveled around the U.S. doing shows. People are still interested in seeing their performances, he said.

 

What is Ghost Town worth?

During Friday’s foreclosure proceeding, Presley bid $2.5 million for Ghost Town. But, that is not what she will actually pay for the property.

The actual price tag is only $1.5 million, thanks to an interesting and non-traditional financing arrangement Presley struck to bail Ghost Town out of foreclosure.

When Ghost Town’s previous owners went bankrupt, BB&T was their biggest creditor — holding $10.5 million in debt.

BB&T chased Ghost Town into bankruptcy and to the doorstep of foreclosure. But for the past 18 months, it hasn’t pulled the trigger on foreclosure — likely because it knew that the beleaguered park would fetch nowhere near what the bank was owed. The idea that anyone would pay anything close to $10 million for the dilapidated and broken down amusement park is inconceivable.

“Who is going to pay $10 million for Ghost Town? Well, nobody is,” said Waynesville Mayor and lawyer Gavin Brown.

Instead of going forward with the foreclosure, BB&T sold its note to Presley for $1.5 million — a far cry less than the $10.5 million the bank is owed.

“What they (did) is just cut their losses and run,” Brown said.

When Presley purchased the note, she all but ensured that Ghost Town would be hers. Presley now owns BB&T’s entire $10.5 million note against Ghost Town — even though she only paid $1.5 million for control of the note. Someone would have to bid more than $10.5 million before they could top what she has in it.

The foreclosure is a mere formality, as was the $2.5 million Presley bid for the park. In essence, her $2.5 million bid will come back to her since she is the primary note holder.

So, not counting the court fees and related costs, how much did Presley pay for Ghost Town?

The simple answer is $1.5 million — the amount BB&T sold its note for, Presley said.

Other possible investors have until Feb. 20 to place an upset bid. However, John Doe cannot simply walk off the street and offer a few cents more than Presley’s current bid for Ghost Town. Upset bids must be at least 5 percent higher and bidders must put down a percentage of their bid up front.

As for the millions owed to private investors and small businesses by Ghost Town’s former owners? They won’t be seeing a dime.

Merger of Jackson County tourism entities on the table

While a proposed room-tax hike in Jackson County has been sidelined at least for now, the idea of merging the county’s two tourism entities has been tapped for further study.

Jackson County commissioners plan to appoint a task force to study forming a single tourism agency for the county. Currently, Cashiers has its own tourism agency in addition to the countywide tourism agency based in Sylva. Each are affiliated with the chambers of commerce offices, too — one based in Cashiers and one in Sylva.

There are simply too many players involved in county tourism efforts, to hear Commission Chairman Jack Debnam tell it. He says that a single entity would be more effective and reduce costly and unnecessary duplication.

“I do believe in one (tourism authority) myself, and maybe some advisory boards,” Debnam reiterated to fellow commissioners last week. “I’d like to see us finally act like we are one county. With the people coming off the board, it’s the time to look at restructuring.”

Recent news that the long-time director of the Cashiers chamber and tourism agency, Sue Bumgarner, would retire could make such a restructuring easier. Bumgarner’s retirement will be effective in July and comes following of heightened scrutiny on how Cashiers was spending its cut of the tourism funding pie.

“It seems like an opportune time if we do want to make changes,” County Manager Chuck Wooten said.

In addition to Bumgarner’s retirement, there are four vacancies coming up on the Jackson County tourism board and two vacancies on the Cashiers tourism board, Wooten said.

Cashiers TTA board member Mike Henry said the board doesn’t know yet whether it will hire a replacement for Bumgarner or wait to see what the task force recommends about a merger.

“We haven’t met yet to form a plan,” he said.

While commissioners haven’t yet appointed task force members, Debnam recommended Julie Spiro, head of the Jackson County Chamber of Commerce, and Commissioner Mark Jones, who doubles as chairman of the Cashiers TTA; along with himself.

Jones enthusiastically endorsed Debnam’s olive-branch proposal. Jones constituents in the Cashiers area haven’t been happy about the proposed merger of the Cashiers agency into a single countywide one.

 

Room tax hike sidelined

Meanwhile, Debnam squelched the recent push for a room tax hike from 3 percent to 6 percent, however, saying it had been ill-considered.

“I would like to continue to spend some more time on this, to learn more about the impact we may have and exactly how we want to structure this,” Debnam said. “We made an error; we moved a little too fast, we were not informed enough to make the decision we tried to make.”

Debnam and his fellow commissioners faced a phalanx of outraged lodging owners in Jackson County when they passed, 4-1 with Jones voting no, to increase the tax. Commissioners subsequently rescinded that vote because they failed to hold a required public hearing.

Regardless of mistakes made and future plans to be made, finding the correct answers are critical to Jackson County’s economic wellbeing, Commissioner Doug Cody said.

“The decision was made years ago … to hang Jackson County’s economic health on travel and tourism — kind of deemphasizing” other forms of economic development, he said. “If we’re going to hang our hat on tourism, we’re going to have to get out and fight for those tourism dollars. We’ve got to make Jackson County a destination for people, not a pass through for other counties.”

Wooten said that commissioners would need to make their appointments promptly to the tourism committee to enable it to report back to them sometime this summer.

The road less traveled

The question ‘which way to Cherokee?’ continues bedeviling the state transportation department, which has been caught in a tug-of-war between Jackson County and Maggie Valley over who deserves a sign pointing the “right” way to Cherokee.

Maggie Valley currently holds title to the sole directional sign pointing motorists to Cherokee via U.S. 19 and over Soco Gap — and would like to keep it that way.

“We are all for helping promote Jackson County, but not at the expense of Maggie Valley,” said Maggie Valley Mayor Ron DeSimone.

The N.C. Department of Transportation is “leaning toward” posting a sign indicating that there are in fact two routes to Cherokee — one through Maggie and one that continues on past Sylva.

But by posting another sign, the department of transportation would “take away from one and give to another,” said Alderman Mike Matthews. “There has not been enough information to say you should go this way versus this way.”

Jackson County officials, meanwhile, have lobbied for the second sign, pointing out that the four-lane highway going past Sylva is actually safer and more user friendly than the route through Maggie. The tribe has expressed a desire for a second sign.

“They feel like the two-lane road over Soco is hazardous,” said Reuben Moore, a DOT official who works in the regional office in Sylva.

But DeSimone questioned Jackson’s true motive.

“Obviously, Jackson County did not bring this up because they were concerned for public welfare,” DeSimone said.

Maggie Valley could win out, however, as the DOT has yet to find a place to put the new sign and has not settled on concise wording.

 

Safety and travel time

Moore updated the Maggie Valley Board of Aldermen on the status of the sign issue at a town meeting last week.

If the DOT decides to allow a new sign, it would be placed by May before the beginning of the tourist season.

But, posting a new sign faces several obstacles, including where to place it.

“It takes about a mile of signage to properly sign an exit,” Moore said. But the roadside leading up to the Maggie exit is already cluttered with signage.

DOT has not settled on the appearance of the sign. It cannot simply put two dueling arrows on a sign pointing this way or that way to Cherokee.

“That is strictly against policy,” Moore said.

The DOT has discussed making a sign with the words Cherokee spanning the top half of the sign and the mileage for both routes below it: U.S. 74 at 37 miles and U.S. 19 at 24 miles.

Although the route through Maggie is shorter distance-wise, a study by the DOT showed that travel time was essentially the same — about 35 minutes — no matter which road was taken.

“We found that the travel time was very nearly the same,” Moore said.

Initially, Moore wanted the sign to specify that the travel time was about the same no matter which route is taken, but DOT vetoed the idea because traffic or accidents could delay travel along one of the roads.

The department only test-drove the routes three times during the late fall and winter. The times do not account for increased traffic during the summer and early fall months when tourists flood the area. Get stuck behind a slow moving Winnebago, and the trip through Soco Gap could be a grueling one.

The review of both routes showed that the crash rate on U.S. 19 is 10 percent higher.

Alderman Mike Matthews said that the two roads are incomparable when it comes to wrecks because U.S. 19 runs through a town where cars are often slowing down or speeding up and pulling in or out of parking lots. The U.S. 441 route, however, is a four-lane divided highway.

“I don’t even see how that could be compared,” Matthews said.

Maggie Valley officials said they want “overwhelming, definitive information” showing that the road through Jackson County is safer.

Does DOT consider U.S. 19 to be safe, Matthews asked?

“Absolutely,” Moore responded.

Aldermen Saralyn Price asked Moore pointblank which road would he take if it was snowing and he was in Lake Junaluska.

“I wouldn’t be out,” Moore said.

The Board of Aldermen argued that the DOT has not provided any information that would validate a decision to post a new directional sign.

“I have not heard anything definite about (U.S. 441) being safer,” DeSimone said.

 

Capturing tourism dollars

Maggie Valley and Jackson County each hope to attract a portion of the 3.5 million people who visit the casino in Cherokee each year.

The idea that Maggie Valley will lose business should an alternative route be posted “presupposes that people are going to do what the signs tell them to do,” Moore said.

Jackson County commissioners haven’t been shy about their desires to funnel tourism traffic through that county. Jackson County Manager Chuck Wooten and the five county commissioners expressed surprise last week that their request for a sign had triggered uproars in Maggie Valley.

As they hammered out possible designs for a new welcome sign at the county line, Commissioner Doug Cody joked that they should add to Jackson County’s fantasy sign: “This is the best route to Cherokee.”

A decision will be made based on safety and the speed of traffic, assured Moore, not based on which route is more scenic or needs more business.

According to Jackson County Travel and Tourism, visitors have said that they prefer to take U.S. 441 to Cherokee. But, Moore said he can’t confirm whether that is true.

Motorcycle battle royale: Maggie parleys with Rally in the Valley, Thunder in the Smokies to negotiate truce

The coordinators of the annual Rally in the Valley motorcycle event have strapped Maggie Valley leaders a seemingly impossible ultimatum that could leave the town in straits no matter what they decide.

Rally in the Valley coordinators asked the town to bar any other motorcycle festivals from coming to town the week before or after its September rally in hopes of ensuring a bigger draw for its own event. If the town didn’t comply, Rally in the Valley would be no more.

The town dutifully responded by asking Maggie’s other big motorcycle event of the fall, Thunder in the Smokies, traditionally held the weekend before Rally in the Valley, to move dates.

But, Rally in the Valley then upped its demand. If Maggie wants to keep the Rally in the Valley, it can be the only motorcycle festival held there during the entire fall.

“The Town of Maggie Valley has always welcomed The Carolina Harley-Davidson Dealers Association and their customers to Maggie Valley,” said Sandy Owens, a spokeswoman for the association that puts on Rally in the Valley, in an email. “We are hoping that we can come to an agreement with the town that will allow us to move forward with future successful fall rallies.”

Owens declined to comment further.

And with that, the town found itself between a rock and a hard place: it will lose Rally in the Valley if town officials do not meet the terms, but it will lose Thunder in the Smokies if it does.

The town has a long standing agreement with the company that hosts Thunder in the Smokies, which puts on a May rally in addition to its one in September.

Handlebar Corral Production has run Thunder in the Smokies in Maggie for nine years, and has said it will stop holding both its fall and spring event if the town sides with Rally in the Valley.

Chris Anthony, owner of Handlebar Corral Production, said it would be “practical” to pull out of both commitments — its fall and spring Thunder in the Smokies events.

However, should Rally in the Valley leave Maggie, Thunder in the Smokies has indicated that it would like the rally’s spot on the third weekend in September.

 

Fat lady yet to sing

Negotiations between Maggie Valley and the Carolina Harley-Davidson Dealers Association will not concluded “anytime soon,” said Mayor Ron DeSimone.

DeSimone said that the town has done its best to convince the Harley-Davidson Association to continue hosting its annual Rally in the Valley motorcycle event in Maggie. The town has offered to keep the 2012 event schedule status quo while proposing that the 2013 schedule could be negotiated.

“Balls in their court,” said DeSimone, who spoke at a public meeting on the issue last Wednesday.

The association is expected to make a decision in the next month, and it’s unclear whether it will choose to stop holding the motorcycle rally in Maggie if it doesn’t get exclusive booking or it will continue as it has for 12 years.

There is still a chance that the association will move forward with the event again this coming year, DeSimone said.

“It’s not a done deal yet,” he said.

Discussions at a recent public meeting lasted no more than 20 minutes and focused mostly on whether dates could be retroactively changed should the association pull its event from Maggie’s roster.

However, one resident spoke up about his concern about losing any motorcycle events.

“I want to impress upon you how much money the motorcycles bring to this battle,” said Maggie resident James Carver, who owns Maggie Valley Restaurant. “Save those motorcycles.”

Maggie Valley boosts four motorcycling events each year: Rally in the Valley in the fall, RoadRUNNER Touring Weekend in the summer and Thunder in the Smokies’ fall and spring events.

Each event brings a crowd into the valley — people who will spend their money at Maggie’s shops and sleep in its hotels. And, like many Western North Carolina towns, much of Maggie Valley’s income is based around tourism.

By hosting large-scale events at its fairgrounds, Maggie aims to attract more visitors and money to the town. The loss of one event such as Rally in the Valley would further wound Maggie’s already hurting economy.

“It (Rally in the Valley) brings a lot of business to the town,” said Audrey Hager, Maggie’s festival director. “Also, it’s a big fundraiser for the chamber so that hurts as well.”

The town is still trying to figure out how much impact each event has on the local economy.

The Harley-Davidson Association, which runs Rally in the Valley, has complained that attendance and revenues are down, Hager said. The association has lost “substantial money” during the last few years, she said.

“They cannot sustain the losses they’ve had the last three years,” Hager said.

Without competition from other motorcycle events, the rally would likely see a rise in attendees and profits.

As for Thunder in the Smokies, Anthony admitted that the money generated from running such an event is not always great but said a big factor in attendance is the weather.

“If the weather is good, our crowd is good,” Anthony said. “When I say good, not great.”

Anthony said he did not know how much the events impacted Maggie.

“We don’t really know what the total is that we’re bringing to Maggie Valley,” Anthony said.

Neither event organizer has disclosed their attendance numbers to the town. The numbers would help quantify each event’s impact on Maggie.

Chamber hopes to regain footing with new director

After several years without a full-time promoter, the Maggie Valley Chamber of Commerce plans to bring back an executive director to help the valley rebound from a recession fraught with business closures.

“We need that presence,” said Teresa Smith, president of the Maggie Valley Chamber of Commerce. “There has been a little bit of a loss with not having someone work there full-time.”

Four years ago, former chamber director Lynn Collins left to become the executive director of the Haywood County Tourism Development Authority. After her departure, the Maggie Valley chamber chose to save money by not hiring a replacement.

“We decided to try to act without an executive director to try to put some money in the bank,” Smith said.

Instead, Smith took on some of the directorial duties until the chamber finances turned around.

“We are operating now on a positive note,” Smith said.

The chamber will not have to foot the entire salary for the new director on its own, however. The Haywood County Tourism Development Authority last month approved a $15,000 allocation to the Maggie Valley Chamber of Commerce to cover part of the new director’s salary.

The committee charged with filling the director position has not yet decided on a salary for the position, said Jan Pressley, head of the search committee. The remainder of the salary cost will come out of the chamber’s general budget.

The Maggie Valley Chamber of Commerce has a $150,000 budget this year — a sharp decline from the $300,000 budget it had in 2007. The decrease is due in part to a drop in chamber membership among businesses.

This year, the chamber has about 170 members, down from 220 members five years ago. The decline in membership is due largely to the economy.

“A lot of the businesses have gone out of business,” said Jena Sowers, the visitor’s center manager for the Maggie Valley Chamber.

Restaurants, attractions and performance venues have closed their doors. And, of course, a large number of Realtors and contractors have left the housing trade, Sowers said.

“It was sad because when we would get the letters from them dropping out, they said if they ever go back in business they would rejoin,” Sowers said.

The loss of members made it difficult to afford the executive director salary — even though the recession was perhaps the time when the business community in Maggie needed a full-time leader the most.

The chamber has also been hurting from a loss of funding from the tourism authority, which it once relied on heavily.

The tourism authority subsidized basic operations and overhead of the chamber and visitor center to the tune of $64,000 a year, compared to only $29,000 a year now.

That number is inching back up with the recently-approved $15,000 earmark from the tourism authority to help cover the director’s salary. The funding will come out of a special pot of room tax dollars designated for tourism promotion in Maggie Valley.

 

The face of Maggie businesses

The chamber has received seven applications for the executive director position, and the search committee expects to hire someone in January.

The director will oversee marketing, the daily business of the visitor’s center, work with other entities, including town officials and the lodging association, and be present at various meetings.

Because she also runs the Maggie Valley Inn and Conference Center, Smith could only devote some of her time to the chamber whereas a full-time director can focus all of his or her energy on the job.

“I think the biggest obstacle that I had was being able to be in attendance at a lot of meetings,” Smith said. “I think that just having that presence out there … will be an advantage.”

Like many small towns in the U.S., Maggie Valley has battled business closures, high unemployment and low economic growth during the past several years.

Businesses closed, leaving fewer chamber members and less dues money, which in turn prevented the chamber from hiring a director to help fix those very issues.

The lack of a chamber director also forced the town to pick up some of the slack by hiring a festival coordinator to continue to bring events to Maggie Valley.

Chamber of Commerce members seem to agree that a full-time director could only help Maggie Valley.

“It can’t hurt,” said Dan Mitchell, owner of Laurel Park Inn.

During the past several years, with the closure of the amusement park Ghost Town in the Sky and Soco Gardens Zoo, Maggie Valley has “sort of died,” Mitchell said.

Laurel Park Inn usually closes during the winter but will remain open after a bad business year, he said.

It will take collaboration between business owners to revive Maggie Valley, Mitchell said.

“When you bring (a customer) in, you’re helping the valley,” he said.

Because her business Nutmeg Bakery is relatively new to the area, Brenda Schwartz said she is not sure what the chamber has done in the past but wants to see Maggie Valley expand beyond motorcycle rallies.

“I’d like to see more business development,” Schwartz said. “It needs to be a diverse group.”

Since October last year, at least nine new businesses moved to Maggie Valley. Four qualify as bars. But the new ventures also included a hair salon, an antique shop and grocery store.

Brenda O’Keefe, owner of Joey’s Pancake House, has seen several directors come and go during her business’ more than 40 years.

“I do think we need a director,” O’Keefe said. “I would want them to be out in the community.”

The director should be a regular face around town and in businesses, especially those that are currently struggling, and should hold marketing seminars for its members, she said. Maggie Valley businesses need to work on cultivating a repeat customer base — something that has helped her business through slow times.

“Give people what they want, and they will come,” she said.

The director should also reach out to businesses that are not chamber members, or rather possible future members, and paint a rosier picture of Maggie Valley’s future, O’Keefe said.

Forum encourages Smokies tourism players to band together for the greater good

Niche marketing and regional cooperation were the reoccurring topics of this year’s Smoky Mountain Host meeting held in Cherokee last week, an annual forum that brings together the major tourism players of the Smoky Mountain region.

“Our greatest customers are our neighbors,” said Mary Jaegar-Gale, general manager of Chimney Rock State Park, during a panel discussion at the stakeholder’s meeting.

Matthew Pegg, head of the Cherokee Chamber of Commerce, agreed that Western North Carolina businesses should work together to attract people who live in the region to be tourists in their own backyards.

“There are a lot of people here who don’t know what we have,” Pegg said.

Throughout the meeting, David Huskins, the head of Smoky Mountain Host, encouraged those in the room to stop competing against each other for tourists and instead band together to help brand the Smokies region as a destination, in turn benefiting all the tourism in the region. By pooling their money for advertising, tourism attractions can get more bang for their buck, Huskins said.

Several panel participants discussed creating a map of activities or an a-la-carte itinerary that helps visitors pick and choose what they want to see and do.

“It is very important to get information into their hands before they plan their trip,” said Ed Phillips, executive director of the Burke County Tourism Development Authority.

An itinerary or regional events are a couple of ways in which businesses, towns and tourism authorities could work together to appeal to niche markets, including fishing and motorcycling.

Cherokee alone hosts six fishing tournaments. But, a regional fishing tour could keep visitors in the area, spending money at local businesses, for three or four days, Pegg said.

Speaker Berkley Young, a tourism marketing specialist, emphasized that towns should focus on their niche experiences to draw in tourists rather than trying to offer something for everyone.

People need to ditch their “build it and they will come” mentality and focus on unique experiences, said Young, president of Young Strategies, a tourism research and strategic planning firm based in Charlotte.

While “uncertain” has been the buzzword used to describe travel and the economy during the past few years, businesses are expected to see moderate, 1 to 3 percent, growth in 2012, Young said, and people have not stopped traveling or spending.

The need to get away will always trump other considerations, such as the price of gas, he said. People are taking shorter trips, closer to home and are participating in fewer but more engaging activities.

By promoting unique opportunities, regions are more likely to draw in those vacationers.

Businesses must also get back to the basics of hospitality.

The first words out of a hotel employee’s mouth should not be ‘Do you have a reservation,” Young said. A simple ‘Welcome! We’re glad you are here’ can improve the experience of a visitor, who is likely tired and annoyed from traveling, and increase the chance that they will return, he said.

In a business where profit margins are small, hotel owners fear larger tax will drive tourists elsewhere

Running a small hotel in Western North Carolina isn’t the easiest way to make a living, particularly not in these penny-pinching times when prospective customers want a full range of amenities and a rock-bottom room price.

“It is hard for small businesses like this,” said Sneha Amin, who owns and manages the 22-unit Economy Inn in downtown Sylva. “People are not wanting to spend anything, because they don’t have anything.”

A plan is in the works to increase the tax on overnight lodging in Jackson County from 3 percent to 6 percent, as high as state law allows. The prospect has left Amin and other hotel owners in the area — large and small — on edge, worried that such an increase could further drive away the ever-dwindling number of visitors they depend on for survival.

But proponents say the room tax is needed to offset a decline in tourism revenue in Jackson County.  The increase will mean more money to market Jackson County as a destination, which in turn should increase tourism. That’s something supporters say Jackson County sorely needs as overnight stays are still off by 12 percent in Jackson compared to 2006.

Alleghany County, which is increasing its room tax from 3 to 6 percent this year as well, has experienced similar ups and downs, according to Alleghany County Manager Don Adams. Like Jackson, Alleghany hopes the extra money from the tax increase — which means more money at its disposal for tourism marketing — will turn the tide.

Most of the protests in Jackson County have come from the Cashiers and Glenville area, where posh inns, golf course resorts and B&Bs cater to a well-heeled, but increasingly frugal, crowd.

But the fear of hardship to come via any increase is the same in Sylva. A block or so from the Amin’s hotel at the Blue Ridge Inn, far from the Cashiers area, Pete Patel is equally worried. Patel and his wife have owned and operated the 33-unit hotel for eight years.

“The summer was OK, but the winter is going to be tough,” Patel said, adding that he hopes commissioners won’t move forward with plans to hike the tax.

Those fears might be overstated.

Linda Harbuck, longtime executive director of the Franklin Area Chamber of Commerce, said she hasn’t noticed any particular decline in Franklin’s hotel stays since that town went from a 3 to 6 percent room tax. While Macon County’s base room tax rate is only 3 percent, the town of Franklin tacked on an additional 3 percent in the town limits.

“They seem to do all right,” Harbuck said.

The story is the same in Henderson County, which a year-and-a-half ago raised its room tax from 4 to 5 percent. Karen Baker, spokesperson for the Henderson County Chamber of Commerce, said that the tourism group has not seen a visible decrease in room stays since the increase.

“There are always two sides whenever there is an increase in a tax, but it hasn’t seemed to hurt occupancy,” Baker said.

Hotel owners in Jackson County beg to differ.

Raise the room tax, and it might drive tourists away and cost the county jobs, Amin and the other hotel owners said. Amin said she’s finding it difficult enough to earn the required $8,000 or more each month needed to pay the hotel’s bills.

Larger hotels are also feeling the dour economy’s tight squeeze.

“We hope that our county commissioners will hear our concerns and ease our fears,” said Megan Orr, director of sales for Best Western Plus River Escape Inn & Suites in Dillsboro. “Prospective customers make informed choices and will see and feel the difference of our higher taxes compared to our neighbors.”

 

How Jackson’s room tax stacks up

Two-thirds of the state has a higher room tax rate than Jackson County. With a tax of only 3 percent, Jackson is one of only 33 counties with a rate that low.

Jackson County leaders are debating whether to take the room tax rate to 6 percent — a rate share by roughly 30 other counties. Here’s some of the other rates in Western North Carolina:

• 3 percent: Jackson, Swain, Macon, Clay, Graham, Mitchell, Yancey

• 4 percent: Haywood, Buncombe, Transylvania, Cherokee

• 5 percent: Henderson, Madison, McDowell

• 6 percent: Town of Franklin, Watauga

Cashiers TTA briefs county on marketing efforts

The Cashiers Travel and Tourism Authority briefed Jackson County commissioners on some of their marketing campaigns from the year, responding to calls that the agency was too insular.

Mark Jones, a member of the Cashiers tourism board who is also a Jackson County commissioner, gave a presentation on the agency’s advertising for the year, including samples of ads that have been placed in various magazines and travel articles written about Cashiers.

Jones said the Cashiers tourism board plans to get new software that will allow it to share  the names and contact information for prospective tourists with lodging owners and other tourism businesses. When prospective tourists call, email or respond to magazine ads requesting information on visiting Cashiers, the Cashiers tourism agency sends them brochures. A new system will allow the database of names to be made available to those in the tourism industry who may want to follow up with brochures and literature of their own, Jones said.

Jones said the Cashiers tourism agency is more than happy to provide a regular report to the county.

“We truly want transparency,” Jones said.

Sue Bumgarner, the director of the Cashiers Travel and Tourism Association, had not responded to earlier requests by the county to provide a progress report on its tourist promotions. Tourism in Jackson County has taken a hit in the recession, spurring interest at the county level on how to improve marketing.

All the invoices for the Cashiers tourism agency go through the county finance office, and Bumgarner has said she thought those invoices served as adequate reporting to the county on the agency’s activities.

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