An organization dedicated to promoting tourism in the greater Niles area is closing at the end of the month, leaders say, due to declining revenue and membership.

The Four Flags Area Council on Tourism, which was incorporated in 1989, will cease operations beginning Jan. 1.

“I am truly thankful to have been a part of this office for so many wonderful years,” said longtime Executive Director Melinda Michael, the non-profit organization’s only paid employee.

A.J. Jairam, president of the board of directors that governs the tourism council, said the board voted unanimously last month to close the organization, whose purpose was to attract visitors to Niles, Buchanan, Eau Claire and Berrien Springs.

“It is a big loss to the community,” he said. “For what we had to work with I thought it was a great benefit.”

Lipstick Jungle Spa owner Susan Sakara, who served as the council on tourism’s first executive director years ago, said as a Niles business owner she is sad to see it go.

“It is really sad that it is closing because there were times that it was really helpful to the community,” she said. “Any little bit of help we can get is certainly helpful… we just don’t have the people coming to our area like we used to.”

The council on tourism had three sources of revenue: a 3 percent tax on revenue at local hotels/motels, membership fees and advertising sales.

Michael said the hotels/motels the organization received tax money from were the Village Inn in Berrien Springs, Niles Inn, Stephen’s Motel in Niles, Comfort Inn & Suites in Niles, Holiday Inn Express in Niles and the Golden Eagle Motel in Niles.

Jairam, who owns the Niles Comfort Inn & Suites and the Niles Holiday Inn Express, said the hotels/motels would no longer have to pay the 3-percent tax.

He said a decline in hotel/motel revenue, membership and advertising were the main reasons behind the decision to close.

“2008 is when the economy hit us hard,” he said. “We tried to tighten our belt as much as we could.”

Michael also said a money market in which the funds collected from the hotels/motels was placed was not generating enough interest to pay for expenses.

She said the organization used its revenue to promote tourism in the area through various means, including the creation of an annual tourism booklet, map and website. Revenue also paid for office space, regular expenses and the Michael’s salary.

Michael was unable to provide the exact current membership total for the council on tourism, but said membership has declined over the years. She said new members were gained through solicitation.

The council on tourism has been operating out of office space at 221 N. Fourth St. in Niles.

Michael said the council on tourism’s website would remain functional through 2016.

Jairam was unable to provide the Daily Star with the council on tourism’s budget, saying he would have to discuss with the rest of the board what information they would be willing to release to the public.