Fort Smith hospitality tax collections dip in February

February hospitality tax figures in Fort Smith totaled $56,708, down 7.1% from collections in February 2008.

The top five hotels, based on February collections, were Hampton Inn, Holiday Inn City Center, Courtyard by Marriott, Holiday Inn Express and Comfort Inn of Fort Smith.

Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau, said the decline is a reflection of “a corporate market that is starting to soften.” According to reports from the hoteliers, Legris said leisure travel remains strong.

January hospitality tax collections in Fort Smith totaled $47,908, up 2.2% over January 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. The taxes are collected from a 3% tax on hotel room rates.

The big increase in 2008 was driven by the number of insurance agents and construction crews in the region following the April hail storm and a severe June wind storm. However, Legris said the lineup of groups and events to come to the region in the next few months gives him confidence the 2009 numbers will be strong. Legris predicts a 5% increase in 2009 over the 2008 collections.

“It looks like we will do well against last year’s numbers, and that’s without the hail storm,” Legris said.