2014 tourism tax tally and employment up in Fort Smith and Van Buren

Hospitality tax collections in Fort Smith and Van Buren were up 4.2% and 1.4%, respectively, and collections of Arkansas’ 2% tourism tax has set a new annual record for collections during the first 11 months of 2014.

Hospitality tax collections in Van Buren for 2014 total $430,278, up 1.4% compared to the same period in 2013. The city collects a 1% tax on lodging and a 1% prepared food tax.

For the year, revenue from Van Buren’s prepared food tax was $370,445, up from the $363,607 in 2013. Full year revenue from hotel tax collections was $59,833, down from the $60,702 in 2013. An odd December caused the slip, with December hotel tax revenue of $3,491 being 22.5% below that of December 2013.

“There is one motel that changed ownership late in 2014 and their December taxes haven't been paid, however, all the other properties except one were significantly off from 2013,” said Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission .

Koeth said weather conditions in December 2013 may have forced travelers to stay in hotels longer than planned. According to Koeth, December 2013 was the 7th snowiest December on record.

“It also explains why prepared food totals are up over 5% from December 2013. Fewer people went out to eat in the bad weather of 2013,” she said.

Overall December receipts totaled $33,257, up 1.35% compared to December 2013.

Collections in Van Buren during 2013 totaled $423,221.83, remarkably close to the $423,222.91 during 2012. 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 NUMBERS
The Fort Smith Convention & Visitors Bureau collected $761,826 in 2014, up 4.2% compared to 2013. The city collects a 3% tax on lodging.

December hospitality tax collections in Fort Smith totaled $50,145, down 4% compared to December 2013.

Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau, said 2014 saw a one-year loss of the large conferences held by the Christian Congregation of Jehovah’s Witnesses (CCJW) at the Fort Smith Convention Center in recent years. The group is expected to return to Fort Smith in 2015.

“Citywide hotel occupancy for the year was +2.4% and average daily rate increased 3.3% which helped us to achieve the 3% growth we had anticipated with best results from the third and fourth quarters. In addition to these overall increases we were able to ‘recover’ some of the revenue by hosting a series of smaller CCJW meetings throughout the year,” Legris said.

He is also projecting $848,800 in hotel tax revenue in 2015, up 11% from 2014, with much of that growth based on the CCJW return.

“Although we expect some temporary decrease in inventory due to renovation projects (including the complete renovation and ‘reflagging’ of the Holiday Inn City Center property), we will also see the addition of 90 rooms with the completion and opening fo the ‘Home2’ project on Phoenix Avenue,” he said.

Collections in Fort Smith during 2013 totaled $731,057, down 2% compared to the same period in 2012. During 2012, Fort Smith hospitality tax collections totaled $746,182, up 5.37% compared to the 2011 period. The 2011 collections were up 4.3% compared to 2010.

Increases in Fort Smith and Van Buren hospitality tax numbers corresponds with job gains in the region’s tourism industry. According to the U.S. Bureau of Labor Statistics, the region’s leisure and hospitality sector employed an estimated 9,500 during December, down from 9,900 in November and above the 9,200 in December 2013. The sector reached an employment high of 9,900 in August, September and November.

ARKANSAS TOURISM TAX, JOB NUMBERS
Collections of Arkansas’ 2% tourism tax during the first 11 months of 2014 totaled $12.866 million, up 7.51% compared to the $11.967 million during the same period of 2013.

The 2% tourism tax set a record in 2013 by reaching $12.716 million, and the 2014 numbers are on track to reach more than $13.5 million in 2014.

The 2013 collections were up 2.5% compared to the $12.405 million in 2012, and well ahead of the $11.378 million slump in 2009 when national economic conditions proved tough on Arkansas’ tourism industry.

Growth in tourism jobs has tracked with growth in statewide tourism tax collections, with employment recently hitting a new record for Arkansas’ travel and tourism industry. Arkansas’ tourism sector (leisure & hospitality) employed 109,400 during November, up from 109,200 during December, and above the 106,600 during November 2013. The November number, if it stands, marks a new record for employment in the sector.

Arkansas’ tourism sector (leisure & hospitality) employed 113,900 during December, up from 110,400 during November, and above the 106,900 during December 2013. The December number, if it stands, marks a new record for employment in the sector. Employment in the sector is up 23% in the past 10 years.