Regional tourism sector up in 2011

Other segments of the Fort Smith regional economy are struggling to recover, but the area tourism sector saw gains in employment and hospitality tax collections during 2011.

Hospitality tax collections in Van Buren during 2011 totaled $429,561, up 2.34% compared to 2010. A busy November and December helped Van Buren finish out the year on a high note by generating a combined $62,644, a more than 7.5% increase compared to the 2010 period. The city collects a 1% tax on lodging and a 1% prepared food tax.

“As we saw in November our numbers were above the year before due to a marginally better economy in 2011 over 2010 and great weather,” Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission said of the year end boost.

The 2011 collections end a two-year skid in Van Buren. For all of 2010, Van Buren hospitality tax collections totaled $395,195, down just 0.62% compared to 2009. During 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.

“Even in a still sluggish economy, I anticipate a slow climb up for the hospitality sector throughout 2012. Van Buren has a few special events happening in 2012 that should help continue the recovery we started in 2011,” Koeth said.

Van Buren will again host the Babe Ruth World Series in August. The event will bring nine teams and their coaches, families and friends to the area for 10 days.

That event alone will provide a very welcome boost to our local economy during a traditionally slow period in the year,” Koeth explained.

FORT SMITH
The year also ended on a positive in Fort Smith, with December collections totaling $47,859, or 12% higher than December 2010.

For the year, hospitality tax collections in Fort Smith totaled $708,141, up 4.3% compared to the 2010 period. This is the second consecutive year for a hospitality tax collection gain in Fort Smith.

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.

“The 2012 budget calls as well for a 3% increase even before we started receiving word of a probable major jump in the price of gasoline for the spring/summer tourism season. However that news is not always a negative for Arkansas tourism in that many people stay closer to home which might insulate us from major decreases in travel,” said Claude Legris, executive director of the Fort Smith Advertising & Promotion Commission.

The regional hospitality sector also had a good 2012 with respect to jobs. Monthly employment in the Leisure & Hospitality job sector averaged 9,066 jobs a month during 2012, better than than the 8,700 in 2010. And for the first time since October 2009, sector employment pushed past 9,000 jobs in April 2012.

STATEWIDE
Collections of Arkansas’ 2% tourism tax points to an improved tourism industry. The tax garnered $11.329 million during the first 11 months of 2011, up 3.97% compared to $10.896 million during the 2010 period.

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.

Tourism job numbers also improved statewide. The state’s tourism sector — Leisure & Hospitality jobs — employed an estimated 105,400 during December, up compared to the 103,800 in December 2010. Tourism jobs were higher in all 12 months of 2011 compared to 2010.