Hotel tax receipts up in Van Buren, down in Fort Smith

Changes in consumer spending have resulted in small declines in hospitality tax collections in Fort Smith and Van Buren during the first nine months of 2013, with one tourism official predicting that 2014 may present the same trend.

Collections in Van Buren during the first nine months of 2013 total $320,706, a slight decline of 0.03% from the $321,704 in the same period of 2012.

September collections were $33,052, up 0.2% from the $32,987 in September 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, hopes for another gain in October, but is projecting flat revenue for the 2014 budget.

We saw a slight improvement in tax receipts for September due to an early start in fall travel. I anticipate a slight uptick in receipts for October, as well, with the traditional fall foliage vacationers,” Koeth explained. “If the trend continues we should end 2013 about even with 2012.”

Koeth said hotel receipts are just 2% above the 2012 numbers and restaurant receipts are down less than 1%.

“These numbers reflect the changes in consumer spending that seem to compensate for slightly less disposable income available in paychecks and a somewhat rocky employment picture,” she 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 nine months of 2013 totals $560,936, down 2.8% compared to the same period in 2012. The gap is improving, however. The first quarter collections were down more than 6% compared to the 2012 quarter.

September collections were $62,905, down just 1.5% compared to September 2012. The city collects a 3% tax on lodging.

Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau, said the September tally does not include an estimated late payment of $919 from one hotel property.

Legris said September numbers were bolstered meetings and conventions conducted by Central Arkansas Nursing, Christian Congregation of Jehovah's Witnesses, Konsplosion, the Arkansas-Oklahoma State Fair and the Express Soccer tournament. He said hotel occupancy was 56%, down 2.3% compared to September 2012. The average daily room rate in Fort Smith during September was $68.89, up 1.8%, according to Legris.

Fort Smith hospitality tax collections have improved during each quarter. Collections were down 6.4% in the first quarter, down 1.6% during the second quarter, and down just 0.5% in the third quarter.

Arkansas’ 2% tourism tax receipts totaled $8.781 million for the first eight reporting months of 2013, up 2.68% compared to the $8.551 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.