TOURISM AND MARIPOSA COUNTY ECONOMIC VITALITY

Last weeks approval, by the vote of 4-1 (Supervisor Bibby dissenting
because of concerns for the budget and the passage of the Fire Truck
issue), needs some discussion.
First of all, the approval of the Tourism Bureau Contract is for
$510.000. The contract for the Chamber of Commerce to continue the
Visitor Bureau is for $168,000. This is not to support the Chamber
but to fulfill the year around need for Visitor Centers in Mariposa
and Coulterville. During the summer months the Mariposa office is
open seven days a week, from 8AM to 8PM and is currently seeing more
guests than ever. A very valuable asset of our county visitor
experience.

The sum of $510,000 to the Tourism Bureau, a private non-profit per
the Board of Supervisors request, is the same amount as has been
budgeted the last three or more years. The contract calls for
certain activities beneficial to all business and activities in
Mariposa County such as producing a Visitor Guide, directing county
advertising, marketing the county as a whole, not just the lodging
industry, and assisting when asked in the development of events
drawing visitors to Mariposa County. If that visit includes a motel
or hotel room, all the better because Mariposa County, through the
Tourist Occupancy Tax, collects 10% of the room fee to the General
Fund of Mariposa County.
At present those monies make up approximately 65% of the
discretionary revenue that Mariposa County has to spend on such
things as general county operations, fire, Sheriff, libraries, a
portion of community services, planning, and varying percentages of
social services. This fiscal year which will end on June 30, will
return to the county over $10.4 million in revenues from the same
investment over the two year period. Compare that with $8.7 million
at the end of fiscal year 2005-2006.

At the time that the special Business Improvement District was
formed last April, it was agreed that the county would continue its
contribution of 5% to this effort for up to 5 years. However, budget
difficulties or political necessity could change that by virtue of
the fact that the sum must be approved each year and could be
terminated or modified depending on the difficulties that the Board
of Supervisors finds themselves. It is their responsibility to
balance the budget each year, and this contract, along with much
other discretionary expenditure can be subject to modification.
Various contracts, with personnel, retirement and health care funds,
for example, are future agreements that the county has been
obligated to and the total cost of personnel can only be affected by
cutting numbers of employees. Any changes in salary or benefits
would have to be negotiated with the employee units and is not a
practical approach.

What are the benefits of the investment in Tourism? The TOT was
implemented in l964 to give Mariposa County extra revenue to augment
the property tax. The intention was to invest a portion of the TOT
revenue in promotional activities which would help raise the total of
this tax. Mariposa County, almost from the beginning, was unable to
budget very much of the proceeds into promotion until in the l980's
when the percentage of tax was raised to develop a fund to provide
the vehicle for tourist development. At that time, the Chamber of
Commerce was given a contract for approximately $200,000 to develop a
Visitor Center and hire a professional in the field.
Thus, since l986, efforts to serve the traveling public and develop
local business started a process that has grown and gradually
increased the total revenue to the county as well as immeasurable
support to many local business. The investment has generated $1.7
million in new revenue over the past two years with the two year
investment of $1.3 million in costs for the Visitor Center and Tourism
Bureau. That is a net profit of $400,000 directly to the county
coffers. It is difficult to know how much of an increase has been
shared by the business collecting the TOT and others but we do know
that $10.4 million represent $104,000,000 in beds sold, not to count
other goods and services. Sales tax is down slightly but holding
steady which is a measure of other types of spending. No other
function of county government returns a profit on any investment, and
is not designed to.

I include the funds that represent the contract for the Visitor
Centers because these are direct costs to the county caused it is
assumed by tourism, but still, at least on paper, funded by the
activities of the Tourism Bureau. In terms of real gain, however,
the marketing efforts have contributed to an increase of over
$700,000 to the General Fund the last two years. Not one cent for
these activities comes from property taxes. Costs of collecting and
paying the TOT fall to the merchant. The counties cost are related
to accepting and enforcing the collection of the tax. A portion of
the increase (approx. 13%) can be ascribed to rate increases, but the
rest in increased visitation. An economic study made for the NPS
indicates that the existence of Yosemite National Park in Mariposa
County is worth over $400 million to the four counties surrounding
the Park.

To Mariposa County alone the Park provides our largest industry at
about $240 million. The next largest industry is government at about
$80 million. In terms of employment, the Leisure industry employees
approximately 35% of the county population where as government
employees approximately 34%. While this last group does not generate
any net profit, they are without a doubt an important part of the
local economy of all classes. Agriculture produces approximately $10
million in gross revenue. With almost 70% of our population engaged
in government and/or tourism that leaves only 25% engaged in small
business and services not dependant on Tourists... We do not know
the percentage of retired in Mariposa County because it is difficult
to determine. How many are subjects to our social welfare system are
not known because it is constantly changing and is difficult to
determine.

The suggestion is being made that the support to the Tourist
Industry should end in favor of buying Fire Trucks. That we need
fire trucks for our County Volunteer System is clearly a priority.
However to ignore our greatest industry by far seems a bit foolish in
the face of a growing professional effort to increase visitation.
Soon the Tourism Bureau will be staffed by professionals in the
industry whose task it is to increase TOT and revenue to the
industry. The period of time from Sept 15th through the end of the
year demonstrates the greatest opportunity. Last falls advertising
effort showed an increase of over $700,000 in bed tax revenue over
the previous year. In fact most of our gain has occurred in the
fall. That is primarily due to the Park, and thus our facilities
being essentially full during the period from May15 through early
September.

While we market Yosemite and Mariposa County as a destination year
around, we place special emphasis on those fall months, and a bit of
early spring, as being the period when the greatest improvements can
take place. We have not built any new hotels/motels in the last
couple of years, although the strength of our tourism industry has
stimulated an increase in the number of Vacation Homes being offered.
In fact, taken together, they are beginning to represent a
significant portion of the whole industry.
Taking away the support for Tourism probably will not make a
significant impact on the core summer business, but it certainly will
disrupt any effort to create gains during the period when we wish to
increase occupancy from below 50% to our first goal of 65%. This is
a major market segment with the greatest potential. We have
increased our marketing in Europe and it has shown results. No doubt
the value of the dollar does make a difference, but one takes
advantage of opportunities. There are many other foreign markets
that can and will be penetrated in order to see the improvement in
fall and spring business. That effort is being planned. This is not
a simple effort headed by a local amateur in the field, but will now
be directed by an experienced Executive Director. It is our economy
for today and the future, we must nurture it. In order for County
Government, small business, service providers and social recipients
to benefit in a very difficult economic environment, we must take
advantage of our opportunities. The goose is still golden; do not
take away her eggs.

Leroy Radanovich

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Leroy Radanovich's Mariposa Life Archives
 

To learn much more about Mariposa County along with
historical photos:
A signed copy of "Images of America" - Mariposa County,
By Leroy Radanovich can be purchased at his web site:
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This is a early day photo of the Mariposa Mine in
Mariposa County that is mentioned in the article to
the left by Mr. Radanovich.

This photo and others can be purchased in various sizes.
All prints are archivally printed on fiber based paper, given a selenium wash which renders the photographs permanent with a warm tone ready for framing
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Mariposa in 1920

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All prints are archivally printed on fiber based paper, given a selenium wash which renders the photographs permanent with a warm tone ready for framing
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Mariposa County Courthouse written by Leroy Radanovich and
Scott Pinkerton is a book about the oldest courthouse in California that is still in use today.
The book is signed by Leroy Radanovich.
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Mariposa in 1860

This photo and others can be purchased in various sizes.
All prints are archivally printed on fiber based paper, given a selenium wash which renders the photographs permanent with a warm tone ready for framing
Radanovich Galleria & Books