May brings more than 10% dip in Van Buren hospitality taxes
by July 6, 2009 12:10 pm 53 views
Several years of consecutive growth in the Van Buren hospitality sector are in danger of ending in 2009.
The Van Buren Advertising and Promotion Commission reported Monday (July 6) that its May collections were $34,747, down 10.8% from May 2008. (Van Buren collects a 1% tax on lodging and restaurants.) For the first five months of 2009, collections are $161,740, down 5.1%. Unfortunately, the year-to-date percentage decline is growing. Van Buren hospitality tax collections for the first quarter of 2009 were $94,399, down a slight 1.9% compared to the same period of 2008.
The decline is attributed to the overall economic downturn and to a 2008 that saw a boom in hotel and restaurant activity related to the more than $80 million in increased commercial and residential repair activity resulting from severe hail and wind storms in April and June, respectively.
Maryl Koeth, director of the Van Buren Advertising and Promotion Commission, said Van Buren hotels are “holding their own” compared to 2007, with most of the decline seen in restaurant activity. Koeth said major events in June — Jehovah’s Witness conventions, Wakarusa Music Festival — and district tournament games at Field of Dreams in July should boost summer activity.
“My observations are that tourist travel is down slightly and spending patterns have changed to reflect less disposable income for travelers. We are marketing our area more aggressively and in a tighter radius due to the economy,” Koeth explained.
Hospitality tax collections for the city in 2008 totaled $410,914, up 7.4% over 2007 and up more than 14.5% over 2006.
Fort Smith is not immune from the falloff in tourism and business activity. The April 2009 report posted Fort Smith hospitality tax collections of $55,358, down 27.1% from the $75,996 in April 2008. Year-to-date the collections are $226,513, down 6.8% compared to the same period in 2008. (The taxes are collected from a 3% tax on hotel room rates. The city’s May report is expected July 7.)
Fort Smith hospitality tax collections in 2008 totaled $803,591, 11% more than the $723,548 collected in 2007, and more than 19% above 2006 collections.