Big gains seen in area tourism sector

The tourism and business travel sector in the Fort Smith/Van Buren area is building on gains seen in 2011 by entering the first two months of 2012 with double-digit growth.

Hospitality tax collections in Van Buren and Fort Smith during January and February are up 11.4% and 16%, respectively.

“Great weather and Spring Breaks in our travel market helped boost our revenues. With the continued warmer than usual weather and the end of the school year approaching, I anticipate continued increases year over year,” said Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission.

For the first two months of 2012, hospitality tax collections in Van Buren total $62,095, up 11.4% compared to the 2011 period. The January collections were up 11.6%, and February collections were up 11.2%.

Hospitality tax collections in Van Buren during 2011 totaled $429,561, up 2.34% compared to 2010. The city collects a 1% tax on lodging and a 1% prepared food tax.

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.

“I don't see gas prices having a huge impact on our summer travel market,” Koeth noted. “I think people will plan shorter drives for their summer vacations.  Van Buren is a half to one day drive for most of our market.”

In Fort Smith, the collections for the first two months of 2012 total $114,450, up 16% compared to the 2011 period. The January collections were up 8%, and February collections were up an impressive 23%.

“All of the major hotel properties in town showed solid increases in February and we expect to see similar activity in the month of March,” said Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau. “We expect to … show a spike for the month of March with events such as Jehovah’s Witnesses and the Southern Bowling Congress producing gains.”

Hospitality tax collections in Fort Smith totaled $708,141 during 2011, 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.

Collections of a statewide 2% tourism tax generated $723,668 in January, up 8.8% compared to January 2011. Collection of the statewide tax was $12.025 million during 2011, up 4.6% compared to $11.492 million during 2010.