Eureka Springs Revenue Down 7 Percent
by July 28, 2008 12:00 am 88 views
Revenue generated by Eureka Springs’ hotels in 2007 slipped from its all-time high in 2006.
Last year, the City Advertising and Promotion Commission recorded revenue of about $19.24 million, which was down about 7 percent from the previous year.
Sheila Hulsey, accounting coordinator for the CAPC, said the city’s tax on lodging increased from 2 percent to 3 percent as of August 1, 2007.
The figures reported take that change into account.
Most of the city’s hotel revenue came in the fall and winter months, Hulsey said. About $10.31 million was generated between August and December, while $8.93 million was generated between January and July.
The CAPC estimates there are 2,200 hotel rooms in town, so that would put revenue per room at about $8,745 for 2007.
Joe McClung, a Eureka Springs Realtor and owner of Flat Iron Flats and Swiss Holiday Resort a Roadway Inn, said revenue on his hotels is up about 12 percent so far in 2008.
He attributes part of the increase to getting a few more bus tours, but also to higher gas prices. People are staying an extra day (three instead of two) so they can save on driving expenses to other locations, he said.