The Holiday Island Advertising and Promotion Commission has been holding, and continues to hold, public forums to inform the public about the A&P tax to be voted on in Local Proposition 1, as well as how the commission will use that tax and what they hope it will bring to Holiday Island. The three percent tax will be on short-term rentals only.
The tax defines short-term rentals as daily or nightly rentals or lodgings such as hotels, Air BnB, VRBO, and includes meeting room rentals such as the Barn and Ballroom. The tax will be collected and used by the Holiday Island A&P formed earlier this year.
In the past, promotion of the city and work to attract people to buy properties was done by the Holiday Islanders Promoting Residential Ownership Group, which Vernon Anderson explained started promoting the area for residential property buyers starting in 2017. They relied on donations to put ads in publications like the Chamber’s Visitor’s Guide and the Eureka Springs Fun Guide, which led to a mailing list of 2000. Donations have been declining recently and Holiday Island properties have been having a high turnover rate according to Anderson. He believes the A&P will go beyond what HIPRO and HISID were able to do, bringing in more people and perhaps creating more opportunities for businesses.
The commission is made up of seven members led by chair Bryce Holland. According to materials handed out at the meeting, four members are “owners and managers directly involved in the tourism industry… [and] at least three of the members must be from lodging and dining sectors” to be knowledgeable in what “attracts and serves visitors best.” Two members were chosen from positions in a governing body for the city. Peggy Lodewyks is the “at large” member, meant to make sure the commission’s decisions benefit citizens, not just business owners.
The commission can only use the tax revenue in ways that “contribute to community enhancement and tourism promotion” such as advertising to draw in tourists, supporting local events, putting money into parks and other public areas, funding recreational programs, working on recreational infrastructure improvements, and beautification projects.