Regional tourism tax revenue down in first quarter

The pace of activity is slowing in the regional tourism and travel sector based on hospitality tax collections in Fort Smith and Van Buren.

Collections in Van Buren during the first three months of 2013 total $101,133, a slight decline from the $101,700 in the first quarter of 2012.

March collections were $36,524, just slightly ahead of the $36,243 in March 2012. The city collects a 1% tax on lodging and a 1% prepared food tax.

Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission, is hopeful for gains during the summer travel season.

“We are still seeing at best flat numbers for year over year. I think we will continue to see a very slow climb over the spring and summer months,” Koeth said.

During 2012, Van Buren hospitality tax collections totaled $425,554, up 5.2% compared to the 2011 collections. Hospitality tax collections in Van Buren during 2011 totaled $429,561, up 2.34% compared to 2010. The 2011 collections ended a two-year skid in Van Buren.

FORT SMITH
Collections in Fort Smith for the first quarter totals $171,492, down 6.4% compared to the same period in 2012.

March collections were $66,346, down 3.7% compared to March 2012. The city collects a 3% tax on lodging.

Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau, said the numbers are down, but interest in the area is up.

“While collections show a decrease, this is a smaller decrease than we experienced (down almost $7,000) from March collections year over year, so we are in hopes that activity will pick up soon with the start of tourist season and the publicity from being named ‘Top True Western Town’ in America for 2013,” Legris explained. “This should be the case if our level of electronic inquiry is any indication with our total number of web hits up 14% from March of 2012, and the number of unique visitors up 54% year over year.”

During 2012, Fort Smith hospitality tax collections totaled $746,182, up 5.37% compared to the 2011 period. The city collects a 3% tax on lodging.

Nationwide, the lodging industry is doing well.

Smith Travel Research shows that the overall U.S. hotel industry is up for the first three months of 2013. The March occupancy rate was up 0.4%, the February rate was up 2% and the March occupancy rate was up 3.6%.

The “Hotel Industry Pulse” indicates that the hotel industry is performing better than the overall U.S. economy.

“In the last 12 months, overall economic activity, measured by e-forecasting.com's monthly U.S. GDP, rose by 2.1%. Over the same period, economic activity in U.S. Hotels, measured by HIP, increased by 3.2%,” noted Maria Sogard, CEO of e-forecasting.com.

TOURISM EMPLOYMENT, ARKANSAS COLLECTIONS

Employment in the region’s tourism industry was an estimated 8,800 during March, up from 8,600 in February and down from the 8,900 in March 2012.

Average monthly employment in the Fort Smith metro tourism sector ended a two year decline in 2012. During 2007, 2008 and 2009, the average monthly employment was 9,300. That fell to 8,700 during 2010, 8,500 during 2011, but rose to 9,000 during 2012. The sector reached an employment high of 9,800 in November 2008.

Arkansas’ tourism sector (leisure & hospitality) employed 101,300 during March, down from the 13,600 in February, and down from the 103,200 during March 2012. The sector reached a new high in January of 103,700. The previous high was 103,400 jobs during October 2012.

Arkansas’ 2% tourism tax receipts totaled $1.578 million for the first two reporting months of 2013, just slightly ahead of the $1.577 million during the same period of 2012.

Arkansas’ 2% tourism tax receipts totaled $12.405 million during 2012, up 3.16% compared to the $12.025 million during 2011. The gains marked the third consecutive year of improving tourism tax revenue.