Tourism in Norfolk Virginia - Research Paper Example

Introduction: Norfolk Virginia is an independent of the Commonwealth of Virginia. As of the year the censusreports indicated that the city had a population of 242, 803. In the year 2013, the population of the city rose to 246, 392 people. This made it to be the second most populous city, in the Commonwealth of Virginia, and this is behind the Virginia Beach. Norfolk Virginia is located at the center of the metropolitan area of the Hampton Roads (Rose, 2000). This name is derived from the large natural harbor that is found at the mouth of the Chesapeake Bay. It is amongst the seven counties, and the nine cities which form part and parcel of the Hampton Roads metro area. Norfolk Virginia is bordered on the Northern side by the Chesapeake Bay and on the Western side by the Elizabeth River. On its Sothern side, Virginia Beach shares its borders with the cities of Chesapeake, and on its Eastern side, it borders the Virginia Beach. Norfolk Virginia is regarded as the cultural, financial, and urban center of the Hampton Roads (Rose, 2000). The city of Norfolk Virginia has a long historical background as an important strategic transportation and military point. It hosts the largest naval military base in the world, that is, the Naval Station Norfolk. It also hosts two important strategic command headquarters of NATO. It is also a transportation hub, and this is mainly because it has the headquarters of Norfolk Southern Railway. This is a company that operates one of the North’s America Class I railroads (Rose, 2000). This city is also the headquarters of Maersk Line Limited. This is a company that manages the largest fleet of the flag vessels of United States. As a city that is bordered by a variety of water bodies, Norfolk has a number of many miles of bayfront property, and riverfront. This situation makes it very attractive for tourism. Some of the world’s attractive tourism destinations are found in the regions that are surrounded by water bodies, and this includes countries such as Egypt, Venice, etc (Rose, 2000). Therefore, one of the public policies that the government of North Virginia can seek to develop and implement is on the methods of improving tourism in the country. This paper seeks to analyze the various sources of revenue for the government, and how it can fund tourism projects in the city of Norfolk Virginia (Rose, 2000). Furthermore, this paper seeks to describe the restrictions that are placed on those sources of revenue, and how public policy decisions normally affect the receipt of those revenues. Furthermore, this paper will provide an analysis of the economic conditions which have the capability of affecting the projections of the revenues, and provide recommendations of policies that align with the tourism development activity of the government. This paper argues that the promotion of tourism is one of the major activities that the government of North Virginia can implement, for purposes of improving its growth and development. Tourism in Norfolk Virginia: Tourism is one of the economic activities that can do extremely well in the city of Norfolk Virginia. Norfolk Virginia is an early settlement area of the English people; as a result, it is filled with many monuments and historic sites. Historic sites and monuments are one of the important tourism attraction issues. Take for example, the Egyptian pyramids, which have managed to attract a large number of tourists in Egypt (Rose, 2000). Egyptian pyramids are important historical sites and monuments, and they have managed to attract a large number of visitors in Egypt. This has made Egypt to be one of the most important tourism destinations in the world. Furthermore, tourism is one of the sources of revenue for the government of Egypt. For example, Norfolk Virginia has two important historical Forts (Rose, 2000). One of the Forts is referred to as the Fort Norfolk. This is the last remaining harbor front forts, that were authorized and built by President George Washington, in the year 1794. Another important historical Fort is the Fort story. Fort Story is a fort that is built on a prominent piece of land, and in the year 1607 (Rose, 2000). This is in a period when the colonialists first began to settle in Jamestown. It is also provides an important historical facts, and this is because it is built on a site, that was the battle ground between the French, and the British naval forces. There are also other important historical sites, monuments, homes, beaches, roads, rivers, and roads that can serve as tourist attractions. Furthermore, the city of Norfolk Virginia has an extensive road and river network, and it makes it a transportation hub for the region of the Hampton Roads (Louis, 2003). For tourism to be a success in this region there is a need of the government of Norfolk Virginia to fund the potential tourist sites, and improve its infrastructure. For example, it has to continuously improve its Forts, historical houses, beaches, etc. For example, it did cost the city, approximately 150,000 dollars to acquire the Willoughby Baylor House, and a significant portion of that money to renovate the house (Rose, 2000). The Willoughby Baylor House is an important colonial house that reflects the ways in which the gentry lived in the periods of 1600s. Apart from finances, there is a need of enacting good and efficient public policies that would help to ensure that there is efficiency in the manner which the city is able to serve and fulfill the needs of its tourists. This would ensure there are repeat tourists, and hence a steady supply of visitors to the region. This means that the city would experience some economic growth. Types of Funds Government Funds and How they affect receipt and use of revenues: The government of Norfolk Virginia operates and manages three important types of funds. These funds are, general funds, special revenue funds, and capital project funds. The general funds normally account for the entire financial transactions that the government would use to finance its operations (Kirton, 2006). This normally accounts for the financing of the normal activities of the city, which includes police work, general government, public works, etc. These activities are normally funded by money which emanates from non-categorical aid, property taxes, licenses and permits, charges for services, etc. This means that the money allocated to fund these general activities is not tied, and it can be found anywhere, as long as it is a legitimate source of revenue for the government (Macey, 2008). Another type of revenue is the special revenue funds. These normally emanate from a specific revenue source, and they are used for purposes of funding a specific activity. Furthermore, these funds normally guided by a special legislative authority, or administrative actions, that restricts its usage to a particular area, or activity (Rose, 2000). Examples of special funds may emanate from categorical grants issued by the state or federal government, to fund a particular social, economic, or political activity. Finally, there are the capital project funds. These are funds aimed at funding a particular capital activity by the state government. This includes the acquisition, renovation, or construction of some of the major capital facilities or institutions of the city. Sources of Revenue for the City of Norfolk Virginia: Some of the major sources of finances, for the city of Norfolk Virginia, emerge from, the general property taxes, state aid, and other local taxes (Norfolk Virginia, 2014). Property taxes are the largest source of revenue for the government of the city of Norfolk Virginia. As of the year 2010, thee property taxes of the government of Norfolk Virginia comprised of 31.3% of the total sources of revenue. For example, one of the major sources of property taxes lies on the real estate tax (Norfolk Virginia, 2014). In a bid to collect money from the real estate, the Government of Norfolk Virginia normally charges a tax rate of 1.15 dollars, per 100 dollars, of the assessed value of a real estate property (Norfolk Virginia, 2014). As of the year 2013, to 2014, there has been an increase in the amount of property taxes that has been collected by the city of Norfolk Virginia. For example, in 2013, the city was able to collect approximately 244,871, 000 dollars, and in the year 2014, the city was able to collect approximately 255, 632,400 dollars (Norfolk Virginia, 2014). This was an increase of about 4.4%. This is an indication that there is a rise in the number of houses, and properties that are being built in the Norfolk Virginia city (Norfolk Virginia, 2014). Norfolk Virginia is not the only local government that gets most of its revenue from the property taxes. This is also one of the major sources of revenue for almost all the local government in United States (Norfolk Virginia, 2014). For example, as of the year 2010, property taxes formed the largest sources of revenues for various local governments in United States. It amounted to 30% of their general revenues (Norfolk Virginia, 2014). Property taxes normally comprise of residential real estate, and commercial houses. This is in addition to personal properties such as boats, cars, etc. This is a lucrative source of local government revenue, mainly because an increase in the prices of land, or property, the government will manage to earn some revenue. Furthermore, these increases will be reflected on the government records, hence the government will manage to project the trends, in the housing and property prices. Another important source of revenue for the government of Norfolk Virginia is the consumer taxes. These are taxes levied on the spending of services and goods (Norfolk Virginia, 2014). The tax base of this kind of a tax, is always the money that is used on the consumption of goods and service s. These types of taxes are always indirect, and examples includes value added taxes, and sales tax. As of the year 2013, the consumer taxes, levied by the government of Norfolk Virginia stood at 9.3% (Norfolk Virginia, 2014). The total amount collected under this category was 76, 106,000 dollars. Another important source of revenue for the government are permits and fees (Norfolk Virginia, 2014). These permits and fees include business permits, burial permits, building permits, etc. As of the year 2013, the amount of revenues collected from permits included 4, 427, 928 dollars (Norfolk Virginia, 2014). This is an amount of money, that is not restricted, and the government of Norfolk Virginia can use it for purposes of promoting tourism in the region. Grants from the state and federal governments are also another important source of revenue, for the city, and this money is always used to serve a specific purpose. For example, there is a categorical aid that emanates from the state. The purpose of this money is to fund a specific project within the city. As of the year 2013, categorical aid amounted to 237,923,794 dollars (Norfolk Virginia, 2014). On the other hand, non-categorical aid, is not attached, and it can fund any economic, or social activity within the city. In the year 2013, the non-categorical aid of the city was 31,982,000. By looking at these figures, the categorical aid, advanced by the state is more, when compared to the non-categorical aid given to the city. This means that majority of aid or grants that emanate from the state government, is always aimed at funding a specific issue or activity. It is therefore prudent to denote that the only grants or aid that the city can use for purposes of developing and funding a tourism program is the non-categorical aid or grant. Another important source of revenue for the government is the fines and forfeitures. This involves various fines imposed on people, for purposes of breaching the various by laws of the city. It is important to explain that this source of revenue dropped in 2014, when it was compared with the results of 2013. This is because the government was able to collect 1,235, 800 in the year 2013, when compared to 1, 203, 300 in the year 2014 (Norfolk Virginia, 2014). This signified a drop of 2.6%. Other sources of income include fees from services offered, such as recreational fees, educational fees, tourism services, etc. Possible Sources of Revenue for the Tourism Policy: By looking at these sources of revenues, and the types of funds that are operated by the government of Norfolk Virginia, it is possible to denote that promotion of tourism activities can be financed by two major types of funds, general funds, and capital projects funds. There are a number of taxes that fall under the category of general funds, and this includes property taxes, fees and forfeitures, permit fees, charges for services, etc (Lee and Johnson, 2008). This means that the government of Norfolk Virginia can either use the money obtained from these resources, or not (Macey, 2008). For example, when deciding to use money on property taxes, the government can set aside specific revenues emanating from different properties to be used in the financing of revenue promotion activities. For example, the government can use taxes collected on the sale of houses or moving properties, in order to finance the tourism promotion activities. Another possible source of revenue is the fees charged on work permits, business permits, and other services rendered by the government. These fees are categorized under general funds, and on this basis, the government can use them for purposes of financing tourism activities (Macey, 2008). Other sources of funds include, fees charged on motor vehicle parking, and state or federal government grants and aid. The government of Norfolk Virginia can request for funds or financing from the state or federal government. These funds may come is as specific aid, and this is for purposes of financing and improving the tourist activities and services within the region of Norfolk Virginia. These types of funds are referred to as uncategorized funds (Norfolk Virginia, 2014). Furthermore, the government of North Virginia can raise the money, by the help of the private sector and other stakeholders in the tourism industry. This money will go under the special funds, where it will mostly be used for purposes of promoting tourism within the region. It is important to explain that the tour operators and investors, whom the government should contact, should not only come from the region of Norfolk Virginia, but also from all over the United States. This is because it would be easier to raise money by targeting a large group of investors, as opposed to a limited number of tourists. Another important and possible source of revenue will come from the capital project fund. These are money aimed at funding capital projects, through their construction, repair, or even building a new capital project (Lee and Johnson, 2008). For example, in Norfolk Virginia, there are historical forts and homes, that this money can be used for purposes of renovating it. Furthermore, it is possible to use money that comes from the capital projects funds for purposes of renovating roads, beaches, and the construction of hotels, and other recreational facilities. These are important infrastructures that can be used for purposes of promoting tourism, and other tour related activities (Kirton, 2006). Development and construction of infrastructures normally fall under capital projects. It is therefore possible to denote that through these possible sources of revenue, the government of Norfolk Virginia can effectively finance and implement its policy regarding the promotion of tourism in the region. Economic Conditions that affect Revenue Projections: There are a number of economic conditions that may directly affect the revenue projections of the city. One of the major economic factors is the recession. Economic recession refers to the downward growth of an economy. When the economy is experiencing some elements of recession, then it is difficult for the federal, state, and local governments to raise enough money from taxes (Norfolk Virginia, 2014). This is because the rates of investments are down, unemployment becomes high, and it would be difficult for the local government to get grants from state and federal institutions. Economic recession is therefore a factor that may play a role in affecting the revenue projections for the local government (Lee and Johnson, 2008). Another factor is a fall in the prices of property. It is possible for the prices of property to fall, and this will limit the amount of revenues that the local government may collect, from the property taxes (Louis, 2003). It is difficult to control and mitigate on some of these factors. For example, it is difficult for the local government to mitigate on economic recession, and this is mainly because such kind of a situation may affect the whole state, or federation. This therefore means that it is the policies of the state or the federation that may affect this recession, and a situation where the local government does not have any control over. On the other hand, the economy of the US is capitalistic in nature, and hence the local government cannot regulate the prices of properties (World Bank, 2009). This means that that the forces of demand and supply are responsible for determining the prices of these properties. Revenue Policy that Aligns with the Value of the City: Based on the facts presented in this case, the best sources of revenue that can be used for funding the policies of the city is the use of property taxes. This is because the city is the center of urbanization at the Hampton region, and based on these facts, it has experienced an increase in property developments, and growth (World Bank, 2009). Therefore, it would be far much easier for the local government to raise money for purposes of financing the tourism activities through this process (Lee and Johnson, 2008). Furthermore, the government of the city believes in collaboration with other stakeholders, in any industry. This therefore makes it acceptable for the city to raise funds through grants, and aid provided by all the stakeholders of the tourism industry. On a specific note, people willing to invest in the tourism industry of the city. Conclusion: In conclusion, there are a variety of methods that the government of Norfolk Virginia can use for purposes of raising revenue. However, the most dominant method of raising these revenues is through the use of taxation methods. Most of the taxes are levied on properties, and this includes movable and static properties. Other sources of funds, includes charges and fees levied on the services that are provided by the city government. These include parking fees, fees levied on education, permits and licenses, etc. However, in determining where to get revenue for financing the project, the government has to identify the different funds that are in existence. The three funds are, general funds, special revenue funds, and capital project funds. The most convenient areas where the government can acquire this money, are from kitties forming the general funds, and the capital projects funds. Bibliography: Kirton, J. (2006). Sustainability, civil society and international governance local, North American and global contributions. Aldershot, England: Ashgate. Lee, R.D. & Johnson, RW., Joyce, P.G. (2008). Public budgeting systems (8th ed.). Sudbury, MA: Jones and Bartlett. ISBN: s Top of Form Bottom of Form Louis, T. (2003). Statistical issues in allocating funds by formula. Washington, D.C.: National Academies Press. Top of Form Bottom of Form Macey, J. (2008). Corporate governance promises kept, promises broken. Princeton, NJ: Princeton University Press. Norfolk Virginia. (n.d.). Budget Overview. Retrieved December 20, 2014, from http://www.norfolk.gov/DocumentCenter/View/7166 Top of Form Bottom of Form Rose, R. (2000). Norfolk Virginia. Charleston, SC: Arcadia Pub. Top of Form Bottom of Form World Bank. (2009). Decentralization and local democracy in the world first global report by United Cities and Local Governments, 2008. Washington, DC: World Bank. Read More