Gains continue in regional tourism economy

Area jobless figures may point to a haphazard economic recovery, but Fort Smith and Van Buren hospitality collections suggest stronger signs of life in the regional economy.

Van Buren hospitality tax collections during September totaled $30,316, up 2.4% over September 2009 collections of $29,598. September marked the fourth consecutive month of year-over-year gains in Van Buren.

For the year, collections of the tax total $330,050, down 1.2% compared to the 2009 period. Van Buren collects a 1% tax on lodging and a 1% tax on restaurants.

“I have talked with my counterparts across the state and this slow trend upward seem to be statewide,” said Maryl Koeth, executive director of the Van Buren Advertising and Promotion Commission. “Still cautiously optimistic that the climb will continue. I anticipate ending the year with a slight decrease over 2009, but am optimistic that we will continue to see a slow climb upward for the end of the year and into the beginning of 2011.”

For all of 2009, the city collected $381,372 in hospitality taxes, 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.

In Fort Smith, September also marked the fourth consecutive months of year-over-year gains, with hospitality tax collections totaling $62,725, up an impressive 15% over September 2009.

September also marked the second consecutive quarter of comparable gains. During the second quarter (April-June) of 2010, collections totaled $191,308, up 1.4% over the 2009 quarter. Third quarter (July-September) collections totaled $178,280, up 10.9% over the 2009 quarter.

For the year, Fort Smith collections are $525,798, up 1% over the 2009 period.

Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau, said the combination of higher hotel occupancy and higher rates for those rooms are the primary factors for the improved numbers. According to Legris’ survey of area hoteliers, occupancy was up 13.5% and the average daily room rate was up 4.7% during September.

“The budget the A and P has adopted for 2011 is very conservative and shows a revenue growth of flat to 5% for 2011 over this year,” Legris noted in an e-mail interview. “Our Commission members have been told and agree that staff will closely monitor our progress in the first quarter of 2011 and will gladly adjust those figures up if we feel it’s called for, but for now we’re pleased to see a healthier third quarter with indications that it may continue into the fourth quarter of the year.”

For 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.

Statewide, collections of Arkansas’ 2% “Parks and Tourism” tax totaled $1,030,770 in August, down 4.7% compared to August 2009. For the first eight months of 2010, the tax has generated $8.025 million, down 0.16% compared to the 2009 period.