LG CVB has aided The Abbey's growth
FONTANA — David Lindelow, general manager of The Abbey Resort, credits both the growing economy and the village’s membership in the Lake Geneva Area Convention and Visitors Bureau for the resort’s success in the last few years.
“As soon as we joined the CVB, they became the largest referrer to our website,” Lindelow said in a phone interview Sept. 22. “We’ve seen the business grow. Some of that was due to the economic recovery, but we’ve also grow past where we were prior to the recession.”
Members of the village’s finance committee and Village Treasurer Scott Vilona question how much the CVB membership is worth to the village.
For eight years, the Abbey has been paying the village’s membership in the CVB.
A 1995 state law mandates that municipalities pay room tax revenue to a tourism marketing organization. However, the room tax in the village of Fontana was already in place when the law was passed, and the village can use that revenue for tourism-related expenses within the village.
In 2008, the village reached an agreement with the Abbey to start contributing to the bureau.
The village buys the annual membership in the bureau, and the Abbey reimburses the village for that membership.
The equation for the reimbursement isn’t cut and dried, though. Vilona said the math gets “convoluted.”
“The Abbey wanted us to be a part of (the bureau),” Vilona said. “We get paid the room tax, 16 percent of it is paid to the CVB. We bill the Abbey for what we paid. It took me a long time to wrap my brain around it. It’s not the most straight forward agreement.”
As long as room tax revenue stays below $343,000, the Abbey pays the entire membership bill. Since 2011, Vilona said room tax revenue passed that threshold amount.
“If we go above the $343,000 room tax (revenue), then the first $25,000 (above that amount) we give them a credit,” Vilona said.
Vilona said the village doesn’t get reimbursed 25 percent of first $25,000 over threshold then 30 percent for the next $25,000 increment.
“Hypothetically, let’s say we collected $300,000 in room tax,” he said. “We would have paid the CVB $48,000. We would bill the Abbey for that $48,000. If we collected $400,000 (from village room tax revenue), we would pay $64,000 (to the CVB). That’s $56,715 above the threshold ... we credit the Abbey, and the village only gets reimbursed about $40,615.”
These $25,000 increments, Vilona said, don’t change from year-to-year.
When the CVB agreement with the Abbey came up at the Aug. 28 finance committee meeting, Lindelow meet with Vilona and Village Administrator Dennis Martin.
Vilona said he and the finance committee were concerned that the money is benefiting the village, especially now that the village is losing revenue. Vilona said he couldn’t be sure that the Abbey’s growth is due to the CVB membership or because of the economic growth.
Lindelow said the CVB is the best organization for generating overnight stays.
“This area will be known as the Lake Geneva area,” Lindelow said. “People will say, let’s go to Lake Geneva, even when they don’t mean the city ... I have strong arguments that this investment has paid handsomely.”
The village sees additional room tax revenue, additional payrolls and other businesses positively effected because of guests coming to the Abbey, Lindelow said.
“The Abbey generates business for other places within the village and the area,” he said. “Our guests spill over, helping other businesses.”
Lindelow has been a strong supporter of room tax reform because of all the local payoffs municipalities see when the money is used for tourism marketing.
“For every $1 invested, you get about $6 in benefits at the local level,” he said. “Because of our agreement with the village, all properties in the village are represented in the CVB, it’s not just the Abbey.”
Lindelow called the village’s membership in the CVB worthwhile, and that the Abbey would most likely continue the membership even if the agreement with the village was cancelled.
Reported by: LakeGenevaNews.com
“As soon as we joined the CVB, they became the largest referrer to our website,” Lindelow said in a phone interview Sept. 22. “We’ve seen the business grow. Some of that was due to the economic recovery, but we’ve also grow past where we were prior to the recession.”
Members of the village’s finance committee and Village Treasurer Scott Vilona question how much the CVB membership is worth to the village.
For eight years, the Abbey has been paying the village’s membership in the CVB.
A 1995 state law mandates that municipalities pay room tax revenue to a tourism marketing organization. However, the room tax in the village of Fontana was already in place when the law was passed, and the village can use that revenue for tourism-related expenses within the village.
In 2008, the village reached an agreement with the Abbey to start contributing to the bureau.
The village buys the annual membership in the bureau, and the Abbey reimburses the village for that membership.
The equation for the reimbursement isn’t cut and dried, though. Vilona said the math gets “convoluted.”
“The Abbey wanted us to be a part of (the bureau),” Vilona said. “We get paid the room tax, 16 percent of it is paid to the CVB. We bill the Abbey for what we paid. It took me a long time to wrap my brain around it. It’s not the most straight forward agreement.”
As long as room tax revenue stays below $343,000, the Abbey pays the entire membership bill. Since 2011, Vilona said room tax revenue passed that threshold amount.
“If we go above the $343,000 room tax (revenue), then the first $25,000 (above that amount) we give them a credit,” Vilona said.
Vilona said the village doesn’t get reimbursed 25 percent of first $25,000 over threshold then 30 percent for the next $25,000 increment.
“Hypothetically, let’s say we collected $300,000 in room tax,” he said. “We would have paid the CVB $48,000. We would bill the Abbey for that $48,000. If we collected $400,000 (from village room tax revenue), we would pay $64,000 (to the CVB). That’s $56,715 above the threshold ... we credit the Abbey, and the village only gets reimbursed about $40,615.”
These $25,000 increments, Vilona said, don’t change from year-to-year.
When the CVB agreement with the Abbey came up at the Aug. 28 finance committee meeting, Lindelow meet with Vilona and Village Administrator Dennis Martin.
Vilona said he and the finance committee were concerned that the money is benefiting the village, especially now that the village is losing revenue. Vilona said he couldn’t be sure that the Abbey’s growth is due to the CVB membership or because of the economic growth.
Lindelow said the CVB is the best organization for generating overnight stays.
“This area will be known as the Lake Geneva area,” Lindelow said. “People will say, let’s go to Lake Geneva, even when they don’t mean the city ... I have strong arguments that this investment has paid handsomely.”
The village sees additional room tax revenue, additional payrolls and other businesses positively effected because of guests coming to the Abbey, Lindelow said.
“The Abbey generates business for other places within the village and the area,” he said. “Our guests spill over, helping other businesses.”
Lindelow has been a strong supporter of room tax reform because of all the local payoffs municipalities see when the money is used for tourism marketing.
“For every $1 invested, you get about $6 in benefits at the local level,” he said. “Because of our agreement with the village, all properties in the village are represented in the CVB, it’s not just the Abbey.”
Lindelow called the village’s membership in the CVB worthwhile, and that the Abbey would most likely continue the membership even if the agreement with the village was cancelled.
Reported by: LakeGenevaNews.com
