25Thefollowing appeared in a memo from the mayor of the town of Hopewell.
"Two years ago, the town of Ocean View built a new municipal golf course and resorthotel. During the past two years, tourism in Ocean View has increased, newbusinesses have opened there, and Ocean View's tax revenues have risen by 30percent. The best way to improve Hopewell'seconomy, and generate additional tax revenues, is to build a golf course andresort hotel similar to those in Ocean View."
Before making a haste decision to build golfcourse and resort hotel in Hopewell,we should carefully scrutinize the assertion made by the mayor. Without givingsome other elaboration to assist his alleger, it seems little possibility toget Hopewell’seconomy improved by the mayor’s choice.
First of all, the mayor give a dubiousexample that the economy of OceanView was invoke by building a municipal golfcourse and resort hotel. We did not getany data about the annual turnover of these two places of the past two years. Dothey have lots of guests and had been fully booked everyday and then get a lotof profits? Or they might just have little tourist to come and lose money intheir business. And we also don’t know do not know who make the biggestcontribution to the rising of tax. The lack of such kind of evidence does notpreclude that the economy improvement is caused by other reasons such as a new policyto help the development of industry and increase investment, or a newlydeveloped place of interest that attract a lot of tourists.
Even we concede that the economy of Hopewell is boosted by golf course and resort hotel, whetherthe similar action will work in Hopewellis still doubtful. The mayor fails to consider the difference between these twocities. It is likely that Ocean View is a place of beautiful nature scenery andthe main tax of government is from tourism, so the golf course and hotel thatgive the tourists a better service may make a journey to Ocean View moreattractive. If Hopewelldoes not have other place that may attract the attention of people, only thegolf course and hotel that can be easily find in other cities can hardly make anyincrease of tourism. Few people are likely to travel to another city but juststay in the hotel and golf course.
Further more, even if the building of golf courseand resort hotel will make an increase of tax in Hopewell, will it be the best choice for thecity? Each city should make a policy that suits its own situation. If Hopewell locate in aplace which is important for internal and international traffic, like severalnational highway and rail way passes nearby, to put attention on thedevelopment of industry may give the city more feedbacks. Also, if Hopewell has fertilefields, to focus on the agriculture may become a better choice over the golfcourse and hotel.
In conclusion, the mayor can’t make thedecision before making a careful examine of Ocean View’s example and the strongpointof Hopewell.