Millions of people think we're a pretty special place and we do, too.

We think it's incredibly important to welcome our guests with open arms. We also believe it's critical to protect our environment, our community's commitment to excellence and our quality of life...the elusive appeal that brought most of us here in the first place.

We are the Designated Marketing Organization (DMO) for the Town of Hilton Head Island, Town of Bluffton and Southern Beaufort County. The State of South Carolina levies an accommodations tax (ATAX) on visitors and there are strict rules and regulations associated with this tax.

Local residents reap the benefits of tourism but they do not contribute to ATAX dollars. Tax dollars collected by visitors are one of the fund sources used to market the destination. Thanks to the revenue generated by tourism, residents pay far less in taxes and enjoy amenities usually only found in larger metropolitan areas.

ATAX Funding Flow
 

1. Consumer research drives DMO strategic planning. We develop the marketing plan with our marketing council, which includes residents from various segments of the tourism industry.
    
2. The marketing plan and detailed budgets are submitted to the ATAX Committee for review. Public copies of the plan are available on our website, sent to all Committee members and town council and is on file with the town.
    
3. DMO goes before ATAX Committee to answer any questions.
    
4. ATAX Committee makes its recommendation which is sent to the town council for further review.
    
5. DMO goes before town council to answer any questions.
    
6. Town officials receive monthly destination lodging reports developed by independent tourism research firms. Tourism updates including marketing activities are sent to town council, ATAX members and key town staff. These same stakeholders receive alerts about significant media promotions and initiatives.
    
7. Independent, third party audit conducted at the completion of the fiscal year. Results are supplied to ATAX and town officials and posted to our ThinkHiltonHeadIsland.org website.

Here are the facts on tourism marketing.

Q. We keep hearing the word transparency related to the chamber in the media, what does it mean?

A. It makes perfect sense that our visitors pay for visitor marketing. Property taxes aren't used, nor are any other taxes you pay as a resident.

We're a vendor to the town for marketing services and just like any other vendor, we are tasked with delivering a product at a particular budget. We're not a government entity, but a private organization not unlike the construction company that builds the fire station or our bike paths. That fact was recently reinforced by the South Carolina Supreme Court.

We communicate to town leaders how marketing dollars will be invested and it's all in writing in our annual marketing plan that's publicly available for all to see. Any notions to the contrary simply aren't true.

This plan is developed with tourism leaders who are residents in the community and who have vested interest in successful outcomes. The plan is reviewed by the accommodations tax committee, by town council and by the South Carolina Tourism Expenditure Review Committee. They're also posted publicly online alongside our independent financial audits.

We not only meet transparency requirements for how ATAX dollars are spend. In many cases, we exceed them. Annual, independent, third party audits have found that the chamber has complied with generally accepted accounting principles and we have received an unqualified, "clean" opinion since 1985.

National and international organizations have recognized our professionalism. The Chamber is one of 200 accredited DMOs in the world. In addition, we are 5-star accredited by the U.S. Chamber of Commerce (one of the top 1.7% of chambers nationwide) and have been named the National Chamber of the Year three times.

Q. How do we know if tourism marketing is successful?

A. We don't believe that successful tourism is just about bringing in more and more visitors. We believe that the quality of visitor counts and when they're coming also matters.

We base our marketing plans on solid research from the best researchers in the business and report on those results annually not only to town council, but to our tourism community too.

While summer is our high season, we're able to achieve responsible tourism growth in the fall and spring through great events like the Concours d'Elegance and Motoring Festival, Hilton Head Island Seafood Festival, the RBC Heritage Presented by Boeing and others.

Responsible tourism growth benefits all of us. We have an average annual occupancy rate of 51%, which means that residents traditionally experience some "more populated times," but overall, visits are spread throughout the year.

Get the real facts about tourism dollars and how they help the local economy and transparency.

It is important to note that for every ATAX dollar invested in marketing, $24.11 is returned to the local economy in net local government revenue.

The area also benefits from job growth, visitor spending, local revenue, and more.

Visitors Pay Taxes

Ex: a family's stay at a Hilton Head Island hotel, villa or home includes a 10% tax. 

10% tax > 5% sales tax

3% local municipality tax > 2% beach renourishment, 1% town public safety

2% state accommodations tax > 30% of the 2% goes to DMO