November tourism tax collections decline

Despite a November decline, hospitality tax collections in Fort Smith and Van Buren continue to indicate that the regional business and leisure travel economy is trying to recover from a tough 2009.

Van Buren hospitality tax collections during November totaled $28,109, up 4.73% compared to November 2009. For the year, collections of the tax total $392,318, down 0.75% compared to the 2009 period. Van Buren collects a 1% tax on lodging and a 1% tax on restaurants.

For all of 2009, the city 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.

“Although the 2010 numbers aren’t great, I’m relieved that we saw a rebound in the 3rd and 4th quarters of 2010,” explained Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission. “Monthly 2010 tax receipts were below 2009 numbers through May, but beginning in June monthly collections were one to two percent above the same months in 2009.”

Koeth said motel receipts were up 1.48% above the 2009 period, with restaurant receipts down 2.38%.

“I budgeted flat revenue for 2011, but, barring any speed bumps in the national economy, I think our 2011 collections will surpass those for 2010,” Koeth said.

In Fort Smith, hospitality tax collections were $49,292, down 5% compared to $52,103 in December 2009. During the first 11 months of 2010, collections of the tax total $640,077, up 2.3% over the $625,889 collected in the 2009 period.

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. Fort Smith hospitality taxes are collected from a 3% tax on hotel room rates.

“I expect that we might see a flat to minor dip for the month of December as well but we should be able to finish the year ahead of 2009,” said Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau.

Despite improvements in the collections compared to 2009, leisure and hospitality sector employment in the Fort Smith region lags. Sector employment in November was an estimated 8,700, down from the 9,000 in November 2009, according to the U.S. Bureau of Labor Statistics.

Collections of Arkansas’ 2% tourism tax totaled $3.388 million for the third quarter of 2010, up 2.94% compared to the 2009 period. For the first nine months of 2010, the tax has collected $9.038 million, down just 0.07% compared to the 2009 period. The 2009 collection total of $11.378 million was 5.2% lower than 2008 and 1.66% lower than 2007.