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Auerbach: Responding to deep cuts of Scottsdale’s hospitality industry

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When I am asked on the campaign trail what do you mean by “enhanced tourism” I say that tourism consists of several factors. A destination, lodging, food, attractions, and an experience to take with you.

To answer the first part, I mention that Scottsdale is a marketing destination. We host conventions and world renown events. As well, we are a place for sun n’ fun. Some of the best 5-star resorts are located in the city limits of Scottsdale.

These luxurious properties provide guests with all the amenities they could possibly desire. James Beard award winning chef’s provide diners with cuisine second to none. Signature events draw record setting attendance. And we have routinely been chosen to participate in the Superbowl, Final Four Championships and College Bowl Championship games.

Recent statistics show that in 1985 about 35 million people traveled for tourist related purposes. Last year over 1.5 billion did. This third wave of travel tourism is being driven by Google Home, Amazon devices and VRBO. Of the 1.5 billion, almost half went to Europe.

Enter this unprecedented crisis named COVID-19!

Cactus League canceled. Hotels empty. Restaurants closed down. The hospitality industry is by far the hardest hit of any industry.

Unlike Sept. 11, we cannot see this enemy. Food and beverage associations have reported close to a 30% insolvency rate among mom and pop restaurants already, with more to fail permanently by June 30. The termination rate among employees is near 70% in some cities. And Scottsdale has lost nearly half of the $56 million dollars we took in TPT taxes last year.

That is a direct blow to the city’s General Fund. Monies in the General Fund have the least restrictions placed on them.

Under rules the city must follow for legal reasons, the city may make payments, grants or donations where there is a clearly identified public purpose and the city either receives direct consideration substantially equal to its expenditure or provides direct assistance to those in need.

One could argue that restaurant and bar owners, along with hoteliers qualify under the first criteria. Without their shared revenue going into the city as a result of being ordered to shut down --- a clearly identified public purpose --- by definition this meets the first standard. Taking the plain language definition of those in need would certainly meet the second criteria in terms of applying to those employees who ordinarily would be staffing the hotels, restaurants, and bars who have been ordered not to report to work.

Given these facts, I believe that as the only candidate for City Council in August who works in the hospitality industry I am best qualified and have the unique ability to help our city recover economically when this crisis ends.

Editor’s Note: Michael Auerbach is a Scottsdale resident running for an elected position on City Council in the Aug. 4 primary election.