Tourism tax receipts up in Fort Smith, down in Van Buren

Weather slowed regional tourism activity during February, but the tourism sector still shows signs — albeit modest — of recovery.

February hospitality tax collections in Van Buren totaled $27,718, down 5.03% compared to February 2010. Van Buren collects a 1% tax on lodging and a 1% tax on restaurants.

For the first two months of 2011, the city has collected $55,734, down 2.04% compared to the 2010 period.

“Two factors have had an impact on February A&P tax receipts; weather and late payments from a couple of large accounts,” Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission. “I anticipate the gap to close substantially when those payments are received. I had expected the tax receipts to be a little less than last year due to the inclement weather we had this February.”

For all of 2010, Van Buren hospitality tax collections totaled $395,195, down just 0.62% compared to 2009. For all of 2009, hospitality tax collections were 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.

February hospitality tax collections in Fort Smith totaled $50,528, up 2.9% compared to February 2010. Fort Smith hospitality taxes are collected from a 3% tax on hotel room rates.

For the first two months of 2011, Fort Smith hospitality tax collections total $98,799, up 2.11% compared to the 2010 period.

“While the average daily rate city wide was down 1.7% compared to last February, our occupancy was up 7.4% which calculates to a total revenue increase of 5.6%,” Legris said of hotel business.

Legris is looking forward to good March returns.

“We will be anxious to see how March (spring break month) performance looks. With visitation at the National Historic Site up considerably we will see how much of that uptick (we believe from True Grit publicity), might calculate into overnight stays in Fort Smith,” Legris noted in an e-mail comment.

Hotel tax collections in Fort Smith during all of 2010 totaled $678,934, up 1.04% compared to 2009. During 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.

Leisure and hospitality employment in the Fort Smith region continues to struggle despite the relative gains in tourism tax collections. The preliminary estimate for February leisure and hospitality employment in the region is 8,500, up from 8,400 in February 2010 and the same as January 2011. Employment in the sector peaked at 9,800 in August 2008.

Arkansas’ 2% tourism collection garnered $664,952 in January, up 4.07% compared to January 2010. For all of 2010, the tax generated $11.492 million, up 0.99% compared to 2009. The collections were off the 2008 high of $12.005 million.