A&P accounts down as hospitality industry stays sluggish

The coronavirus (COVID-19) pandemic has stifled business for the hospitality industry and the trend has been reflected in the 2020 budget for the El Dorado Advertising and Promotion Commission, which draws its revenue from a 3% lodging tax.

“Plain and simple, the hospitality industry is suffering and we can see that in our collections,” said Paul Choate, who is chairman of the A&P commission and a member of the El Dorado City Council.

Choate shared a brief report Tuesday with year-to-date numbers, saying that the commission has taken in $140,946 in revenue, or about 38% of its 2020 budget.

The number includes approximately $135,000 in lodging tax collections and miscellaneous revenue, including interest from Certificates of Deposit.

“January and February were normal Januaries and Februaries but things changed dramatically in March,” Choate said.

Year-to-date spending came in at $150,483 for the A&P commission.

Choate noted that most of the expenditures are for events that have already occurred, including a $6,000 commitment that was approved last year to promote a show featuring the Harlem Globetrotters in February.

Main Street El Dorado presented the show in the Wildcat Arena, having requested funding from the A&P in November of 2019.

Another ongoing expenditure is payments to the commission’s ad agency of record, the Diamond Agency, Choate said.

During a commission meeting in June, Choate reported that a nearly $20,000 spike in the A&P’s account balance was due to cancellations of events for which requests for proposals (RFPs) had already been approved.

Main Street, the Murphy Arts District and other groups who received funding from the A&P for 2020 events have had to cancel or postpone events because of COVID-19.

He said organizations, including Main Street and the Boomtown Opry, are working to get rolling again.

Main Street scaled back its annual summer events. Installments of the outdoor summer events — which include Summer Concert Series, Grill Wars, games and more — are typically held the fourth Saturday in June, July and August in Downtown El Dorado.

But this year, Main Street has been forced to narrow the schedule down to one month: August.

The Boomtown Opry has scheduled a show for Aug. 8 in the El Dorado Municipal Auditorium, which has plenty of space to allow for social distancing, Choate said.

“Back when we were looking at our (2020) budget, we were looking at the A&P stepping up and saying let’s do everything we can in making El Dorado known and let’s spend some money and see if we can’t get some people into town,” he said.

“Who would have known last November and December that COVID would shut us down in March,” Choate continued.

The A&P commission collects taxes from 12 local hotels and motels and approximately 70% of the rooms are booked by out-of-town visitors, Choate said.

“These are mostly travelers from out of town who are paying this tax and while they’re here, they’re also spending money on things like food,” he said.

He hopes an uptick in local events — including a recent decision by the City Council to reopen the El Dorado-Union County Recreation Complex,which had been closed since March due to COVID-19 — will help to draw more people to town in the coming weeks and give the local economy a much-needed shot in the arm.

Last month, A&P commissioners approved $5,987 for a nine-week promotion that will showcase local eateries.

The Diamond Agency proposed a plan to launch the El Dorado Food Festival, a campaign that is set for September and October and is designed to boost sales for local restaurants and raise awareness about the food industry in El Dorado — which along with other industries, has been affected by the coronavirus (COVID-19) pandemic.

Commissioners also discussed ways to incorporate hotels and motels into the campaign.

“My heart goes out to the people in the hospitality industry and I hope we can get back to business soon as and as close to possible as we can,” Choate said. “People need to be aware of the fact that hotels and restaurants are not having a stellar year and I hope that we don’t lose any more of our small businesses in the community.”

Upcoming Events