By Mark TenBroek
Sedona, Arizona – Over the past year we have been hearing from local businesses and the Sedona Chamber anecdotal evidence that the economic conditions in town are dire. We have been told that local businesses are failing and that the Sedona Chamber needs to spend more on “Destination Marketing” to bring more visitors to town.
Since the City Council did not authorize the Sedona Chamber to spend on Destination Marketing, some businesses in town have begun raising money outside of the Chamber to advertise on their own to bring more visitors to town.
A long term view of business growth
The City Finance Department publishes a report each month that shows the tax revenue for the past two years and compares it to the same month from last year and the projected budget for both sales and bed taxes. These monthly comparisons give little context on where the local economy has been and more importantly where it may be heading.
The following chart uses these total taxable and bed tax revenues to calculate the sales in these two areas for the past 9-1/2 years. This chart shows a 12-month moving total for the economy so that monthly variations are removed and annual trends can be visualized. The red dashed lines show the national inflation rate over this same period.