Big declines seen in area tourism, corporate travel (Updated)
by October 13, 2009 2:04 pm 45 views
The big dip in corporate travel continues to show up as double-digit declines in the Fort Smith hospitality tax collections.
The August 2009 collections were $49,224, down 23% from the $63,690 collected in August 2008. Although Fort Smith hosted the Arkansas Cattlemen’s Association annual convention in August, the “level of corporate travel continues to suffer with the soft national economy,” noted Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau.
For the year (January-August), the hospitality tax has generated $465,965, down 15% from the $546,687 collected during the same period in 2008.
Storms in April and June 2008 make year-over-year comparisons difficult because area hotels were full with contractors, temporary construction workers and insurance claims adjusters. The year-to-date 2009 numbers are essentially flat — down $819 — to the same period in 2007.
“Even with the reports of the national economy stabilizing and the addition of some new industry in the Fort Smith area, local lodging properties indicate that the balance of 2009 will continue behind the 2007 pace,” Legris said.
Fort Smith hospitality taxes are collected from a 3% tax on hotel room rates. 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.
Updated info: In Van Buren, August collections were $31,753, down 12% from August 2008. For the first seven months of 2009, collections were $261,243, down 5.7% from the same period in 2008.
“I have talked with several A&P directors around the state and all are reporting bigger than expected decreases in August collections,” explained Maryl Koeth, director of the Van Buren Advertising and Promotion Commission. “August is traditionally a slow month for restaurant sales due to back to school spending. Hotels are still seeing very soft business travel. I think the slow economy coupled with the normal slow down in August travel and restaurant sales contributed to lower than expected tax collections for August.”
Van Buren collects a 1% tax on lodging and restaurants.