Area tourism tax collections continue two-year decline

Hospitality tax collection declines in Fort Smith and Van Buren are similar to the decline in collections of Arkansas’ 2% tourism tax — all reflecting a tourism industry struggling to recover from the national recession.

Van Buren saw May 2010 collections of $33,094, down 4.75% from the $34,747 in May 2009. For the first five months of 2010, Van Buren collections total $191,388, down 3.82% compared to the 2009 period. Van Buren collects a 1% tax on lodging and a 1% tax on restaurants.

“We are still 3.8% below 2009 and 6% below 2008. I don’t foresee a significant rebound for the remainder of the year, but I think we will continue to see a slow upward movement,” said Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission. “We continue to advertise in those areas that have proven to be our best markets and we are taking advantage of opportunity buys in those areas to spread the word to as many potential customers as possible.”

Koeth also said the commission is working to revamp its website by adding more smartphone features.

“We are working with statewide projects to try and develop new tourism and recreation products to offer the traveling public. Now is the time to plan for the future,” Koeth added.

For all of 2009, Van Buren collected $381,372 in hospitality taxes, down 7.1% compared to 2008. Hospitality tax collections for Van Buren in 2008 totaled $410,914, up 7.4% over 2007 and up more than 14.5% over 2006.

FORT SMITH
Fort Smith saw May hospitality tax collections reach $57,064, down 5.49% compared to May 2009. For the first five months of 2010, Fort Smith collections total $270,758, down 5.62% compared to the same period in 2009. Fort Smith hospitality taxes are collected from a 3% tax on hotel room rates.

For 2009, Fort Smith hospitality tax collections totaled $671,912, down more than 16% from 2008. 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.

The top five most active hotels in Fort Smith, based on May tax collections are:
• Hampton Inn;
• Courtyard by Marriott;
• Holiday Inn City Center;
• Holiday Inn Express; and
• Comfort Inn of Fort Smith

STATEWIDE

Arkansas’ tourism and hospitality sector continues to struggle, with June employment in the sector dropping to 97,500. The sector employed an estimated 98,300 in May, and down 2.98% from 100,500 in June 2009. The sector reached an all-time employment high of 101,800 in August 2008, but has seen its numbers steadily fall since.

Also, collections of the state’s 2% tourism trust fund tax generated $3.263 million during the first four months of 2010, a 5.3% dip from the same period of 2009. Collections of the tax in 2009 totaled $11.378 million, down 5.2% compared to the $12.005 million in 2008.