The Berkshire Business Outlook The Greylock Glass

A new report from Avalara, a leading provider of tax compliance automation for businesses of all sizes shows, year-over-year travel spending has dropped 42% (almost $500 billion) in 2020 and the hotel industry was expecting to have $59 billion less revenue from business travel in 2021 than in 2019. A loss of lodging revenue for hotels equates to a loss in lodging tax revenue for state and local governments leaving local jurisdictions looking at how they can recoup lost revenue.







We invited Pamela Knudsen, distinguished tax compliance and regulation expert in the industry, and an executive with Avalara’s lodging tax division, on the show to talk about these changes and what they might mean to people in the hospitality industry. Give a listen to our conversation via the player (above), or read a rough transcript of our talk below.







This free report (bottom of their page) can also serve as an all-encompassing database of some of the most notable changes that occurred this year and how the hospitality sector will be affected, which can be found on pages 56 – 63. 







The most noteworthy points to think about:







* The hotel industry is projected to end in 2021 with $59 billion less business travel revenue than in 2019. Only 25% of businesses polled in September 2021 planned to resume domestic business travel in the next three months. * Jurisdictions are navigating how to tax streaming services.There’s a 9% amusement tax on streaming entertainment in Chicago and an excise utility tax on streaming services in Kentucky. Several jurisdictions in California impose a local utility use tax on streaming services, though they’re being challenged for doing so. Many states still haven’t settled on how to tax streaming services. * Short-term and vacation rental owners and operators may also need to deal with beverage alcohol taxes, consumer use tax, food taxes, parking taxes, sales and use taxes, streaming taxes, and a host of other taxes (e.g., business personal property tax on certain equipment).  * Lodging and occupancy taxes are continuing to change nationally. Many local jurisdictions impose local lodging taxes on top of state taxes. One bill introduced in Michigan in October 2021 would impose a statewide 5% excise tax on short-term rentals; another measure being discussed in the Wolverine State would allow local governments to tax short-term rentals. * Some states started requiring online travel sites like Airbnb and Expedia to remit taxes on behalf of hosts years ago. Now, local jurisdictions want in on the game. Many local governments today have their sights set on large online travel agencies (OTA) and marketplaces. This is a second wave of compliance regulation, and it’s hitting some businesses hard.







.stk-ls4gic1{opacity:5 !important}A Conversation with Pam Knudsen







(note: rough transcript only)







GG: And with me on the line is Pam Knudsen.

We had the good fortune, way back in 2015, to speak with Alice Maggio, who was spearheading the effort to grow the adoption BerkShares, a local currency that was started for the Berkshire region. Launched in 2006, the program is celebrating its 15th year. Her hard work and expertise, and that of the rest of those involved at the Schumacher Center for a New Economics, have been paying off, with hundreds of local businesses readily accepting the currency as payment for goods and services. Up until now. It’s been a paper currency that features local heroes like W E. B. Dubois and Herman Melville, using signature colors and artworks from local artists. Now that the proof-of-concept stage is well past, it is only natural, perhaps, that it’s time for the beautifully designed notes evolve.







Starting next year, residents and businesses will be able to transact using digital BerkShares via a phone app.







In one way, the digital version of BerkShares will be a payments app, similar to Venmo. The whole idea, though, centers around keeping money working locally within the region, which benefits economic development in the area in a responsible and sustainable way.







BerkShares are valued one to one against the US dollar, but, as a locally issued currency, stands on its own. Currently, more than 400 vendors participate, giving people the opportunity to use BerkShares at the wine store, the farmers market, the auto mechanic, or even to get their teeth cleaned at the dentist. The program is useful specifically because of the diverse range of services and product sellers who exchange in BerkShares, which keep the money circulating within the area.







Jared Spears, Director of Communications and Resources at the Schumacher Center for a New Economics, explained how the digital version of BerkShares will plug in to the larger economy.







“We have merchants who have been recirculating the money,” he said. “They’ll take it and use it for the services and products that they need. And then they also interact with local banks, typically located in the southern Berkshires, who can take in the paper money and give back U.S. dollars. One of the things that we’re excited about with the launch of the app is: anybody who lives in the region can connect to any bank account to upload money. From there, it’s free to exchange and to pay via BerkShares, and there’s just a small 1.5% fee if and when a merchant decides to cash out — less than Venmo and way less than credit cards. So it’s basically one of the most local business–friendly ways to pay.”







Examples of how the digital BerkShares app will look when available in January of 2022; image courtesy the Schumacher Center for a New Economics,







Fennie Wang, with the public benefit corporation Humanity Cash, is one of the folks behind moving BerkShares into cyberspace.







“We’re building the the technology behind digital BerkShares,” Wang explained, “so we’re building an app that has functionality similar to Venmo. You’ll pay through QR codes, and the transactions will run over a third party blockchain network, which is how we can avoid those extractive fees [business incur] whenever you use Visa or MasterCard. Your favorite small business is getting hit with three to four percent fees just for taking your money.”







Although many more people are familiar with the terms blockchain and cryptocurrency at the end of 2021 than back in the 20-teens, adoption of the technology has been slow. In part, the general public has had understandable difficulties wrapping its head around the computing concepts underlying cryptocurrency — they aren’t easy to sum up in a short sentence.

 

If Social Media and digital content are your thing, have we got a show for you. PodCamp Western Mass. #8 is upon us, and you’re looking to connect with comrades in the industry, this is the un-conference for you We speak with Jaclyn Stevenson, Director of Public Relations and Social Media at Winstanley Parnters, who has been a driving force behind PodCamp since the beginning.



A full day of lively discussion, info-sharing, and plenty of documentation via smartphone, tablet, or laptop awaits at PodCamp Western Mass. 8 (#PCWM8) on Saturday, April 2 at Holyoke Community College’s Kittredge Business Center.

 

 

THE event to find out the latest trends and thought in the industry, PCWM8 is the longest continually running PodCamp in New England, and welcomes anyone interested in learning more about social media and networking, from beginners to advanced practitioners. Participants choose the topics they’d like to discuss on the day of the event, including overviews of current and emerging trends, and anyone can also suggest or lead a session.

 

PCWM will be held from 9 a.m. to 5 p.m. at HCC with an after-party to follow, Tickets are $30 and $15 for students and are limited, so participants are encouraged to pre-register.

PCWM8 is sponsored by Cider House Media, the Women Business Owners Alliance, and the Holyoke Community College Kittredge Center for Business and Workforce Development

 

Emily Watts, executive director of the Williamstown Chamber of Commerce joins us again, this time as the guest on our very first “Chamber Check-In” segment of the show.





Williamstown’s Holiday Walk

Saturday, December 5th (with events on Friday & Sunday, too)

Spring Street, Williamstown

Most events and activities are free!

We talk about the Williamstown Holiday Walk, held the first Saturday in December that includes traditional holiday festivities such as old-fashioned caroling and horse-drawn carriage rides. A Reindog Parade Penny Social, and Santa Claus round out the day.

Emily also shares info about “Unsilent Night,” a celebration of music, community, and the exploration of the outdoor experience. The nocturnal walk through North Adams takes place Thursday, December 3, and begins at MASS MoCA.

From Unsilent Night’s website:

Unsilent Night is an original composition by Phil Kline, written specifically to be heard outdoors in the month of December. It takes the form of a street promenade in which the audience becomes the performer. Each participant gets one of four tracks of music in the form of a cassette, CD, or Mp3. Together all four tracks comprise Unsilent Night. The fact that the participants play different “parts” simultaneously helps create the special sound of the piece. Participants carry boomboxes, or anything that amplifies music, and simultaneously start playing the music. They then walk a carefully chosen route through their city’s streets, creating a unique mobile sound sculpture which is different from every listener’s perspective.

Kit & Kaboodle

We are joined by Carolyn Albert, proprietor of Kit & Kaboodle, for our business profile this week. The North Adams gift shop offers unique, local, hand-made crafts and artisan pieces. She and her daughter, Casey Albert, who manages marketing and communications for the shop, talk about the importance of shopping local and being involved in the community.



Kit & Kaboodle

26 Holden St, North Adams, MA 01247

(413) 346-4613

Fortunately, I had the pleasure and relief of editing out the portion of the interview in which we asked listeners to keep an eye out for Gronk, Casey’s prodigal pup who thought a solo tour of Mt. Greylock was JUST the thing to get him in the mood for the season.

Professor Richard Yanow, who teaches investment and finance in the Massachusetts College of Liberal Arts Department of Business Administration and Economics, discusses the importance of keeping calm amidst volatility in the stock market.



Mainstream media can be a great source of information about what’s happening in the business world, but don’t read too much into looming, distant events that could affect investors in unknowable ways, says Yanow.

Developments such as the passage of the Trans-Pacific Partnership or the raising of interests rates by the Federal reserve could shore up confidence or send jitters through the financial world. The better bet, says the MCLA professor, is for investors to educate themselves through industry publications such as Barron’s and the Wall Street Journal, so that when inevitable downturns occur, available funds might be put to good use building up a portfolio at a discount due to unjustified panicked sell-offs in a nervous stock market.

Richard Yanow has a BS in Economics from the Wharton School at the University of Pennsylvania and an MBA from Harvard Business School. He is Professor of Business Administration/Economics at MCLA and teaches courses in Business Strategy (senior level seminar), Personal Investing, Corporate Finance, and an Intro to Business course for both business and non-business first year students. He serves on the Investment Committee of the Northern Berkshire United Way and is a Director of the MCLA Foundation and serves on their   Endowment and Trust Committee. He is,in addition, and importantly, a private investor who actively manages his stock portfolios… and has done so for many years. Mr. Yanow lives in Williamstown with his wife, Elaine.

 

 

1Berkshire holds its first Creative Resources Conference, a “how-to, where-to” for artists and creative entrepreneurs, at Hotel on North in downtown Pittsfield, Thursday, November 12, 2015.



The Creative Resources Conference is a day-long program that will connect over 100 regional arts and creative professionals to services, resources, and industry experts. Six panels will dive deep into issues such as finding the right partners and collaborators, cultivating buyers and investors, using images and stories to reach audiences, utilizing creative space, budgeting for growth, and managing legal and financial obstacles. The conference will also offer three hands-on workshops where attendees can learn about grant writing, auditioning, and developing a visual identity from industry experts. After the conference, attendees can network with other artists, panelists, and presenters at a post-conference cocktail reception at the Berkshire Museum.

The afternoon’s keynote address will be given by Matt Stinchcomb, Executive Director at Etsy.org. Etsy is known to many artists and consumers as one of the first digital marketplaces for unique, handmade goods. Matt was the longest-serving Etsy employee, striving with every position he held to empower artists, designers, and curators to start and grow businesses on their own terms. After nearly ten years with the company he shifted gears to found Etsy.org, a nonprofit organization building entrepreneurial education programs that foster the human capacity, wisdom, insights, and community needed to create regenerative businesses. Matt also serves on the board of the Schumacher Center for a New Economics in Great Barrington, Mass.

Tickets, panel and workshop options, and more information can be found on 1berkshire.com.

 

Julia Dixon is an artist, arts administrator, community convener, and creative advocate. She has worked on a variety of arts-driven economic development projects since her arrival to the Berkshires in 2009 including DownStreet Art in North Adams and the Storefront Artist Project in Pittsfield. In 2012 she became the Managing Director of Berkshire Creative, the region’s state-designated organization devoted to fostering the creative economy county-wide. She serves the creative community in her new role as Creative Economy Specialist at 1Berkshire, where she conceived and organized the inaugural Creative Resources Conference held in the fall of 2015.

1Berkshire’s Creative Resources Conference is supported by the Schumacher Center for a New Economics, Interprint, Jacob’s Pillow Dance, Berkshire International Film Festival, Berkshire Community College, Toole Insurance, and Common Capital. Cocktail reception sponsors include Berkshire Museum and Berkshire Magazine. Email Julia Dixon, 1Berkshire’s Creative Economy Specialist, at jdixon@1berkshire.com for information on becoming a sponsor.