More hotel rooms being built than tourists to fill them, says local tourism leader

CHATTANOOGA, Tenn. (WDEF)- A discussion was held this week on the future on how to better position Chattanooga competitively in the tourism industry.
It was held during a hearing on Hamilton County’s general government budget.

In this year’s budget, the county is slated to give the Chattanooga Tourism Company about a million dollars less, which primarily goes to marketing.

Various topics including incentives for new businesses and helping entities with upgrades were some of the topics discussed.

However, some say they are concerned if we are getting enough visitors to justify a large amount of new hotel rooms across the city.

Hugh Morrow, the CEO of Ruby Falls and a member on the Board of the Chattanooga Tourism Company, said, “We need to attract two thousand more people per day as we sit here to fill those rooms. If we don’t that will erode revenue, revenue per available room, average daily wire, and that 8 percent you’re all talking about spending will be on a smaller number.”

Hamilton County Mayor Weston Wamp renewed his calls for the city of Chattanooga to up their contributions to the Tourism Company.

The mayor said, “It does not make sense that the county would exclusively fund tourism.”

Morrow added that the city has increased from no funding of the Tourism Company to a million dollars from tax revenues.

He also added that surrounding municipalities including Collegedale, East Ridge, Soddy-Daisy, and Signal Mountain should also be brought into these discussions.