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Residents, hoteliers and Visit Carmel clash over TOT, marketing and Sunset Center at budget workshop
Summary
At the May 12 budget workshop, the Sunset Center outlined its operations and funding needs while tourism stakeholders and residents debated a possible transient‑occupancy‑tax increase, marketing priorities and the formation of a task force to coordinate visitor management.
Community and industry speakers used the Carmel‑by‑the‑Sea budget workshop May 12 to press competing priorities around tourism funding and visitor management. Beth Bowman, executive director of the city‑owned Sunset Center, described the center’s role as a cultural and community hub and said the city’s $750,000 annual support covers facilities maintenance, utilities and day‑to‑day operations. She told the council the organization is improving reporting to the city and pursuing a Centennial endowment to strengthen long‑term sustainability.
A coalition of lodging and business groups proposed a new joint task force to coordinate visitor promotion and avoid repeated outreach to council members. Some hoteliers and Visit Carmel representatives defended targeted marketing and said the self‑assessed funding model helps manage destination promotion efficiently. Visit Carmel said its marketing now emphasizes walkability and targeted outreach intended to increase overnight stays rather than general day‑trip traffic.
Not all visitors agreed. Several residents urged the council to prioritize infrastructure and capital needs, including streets, sidewalks and beach access, and some urged raising the hotel tax from 10% to 12% to help fund deferred maintenance. Others—including some industry speakers—warned that raising the TOT could reduce commerce and harm small businesses if not implemented carefully; attendees referenced outside market modeling during the discussion.
Council members pressed for data to inform any decision about marketing or TOT changes: suggestions included wastewater flow and vehicle‑count data to estimate total people in town, and more detailed analysis of how marketing dollars are allocated and whether campaigns are reaching potential overnight visitors. Multiple council members asked Visit Carmel and the newly formed task force to return with a data‑driven plan; staff and industry partners agreed to pursue more detailed visitor profiling and targeting analysis over the coming month.
Bottom line: no policy decision on TOT or marketing funding was made. Council directed staff to bring ballot‑measure language and refined revenue timing for June and to include a paid‑parking enforcement revenue model for council consideration.
