Editor’s be aware: That is the second in a four-part collection wanting on the state of tourism in NWA’s 4 largest cities as they emerge from the pandemic.
An uptick in business-related journey is contributing to a rise in resort bookings in Springdale, says Invoice Rogers, president of the Springdale Chamber of Commerce, to Axios.
Why it issues: Springdale collects a 2% resort/motel tax to fund its promoting and promotion efforts. Town doesn’t acquire a tax on ready meals gross sales like a number of the different cities in NWA.
Enterprise journey is a primary driver of the tax collections, similar to visits to town’s largest employers, like Tyson Meals and George’s Inc., and conferences on the Northwest Arkansas Conference Heart, adjoining to the Vacation Inn.
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Supply: Springdale A&P Fee. Chart: Axios Visuals
State of play: Springdale’s resort/motel tax collections dropped 45% to $287,000 in 2020, from about $523,000 the earlier 12 months. Collections for January via Might of 2021 are up about $1,000 from the identical interval in 2019.
Particulars: The tax collected in Springdale goes into three buckets.
Promoting company companies, supplied by the Springdale Chamber of Commerce
Paid promoting, largely print and on-line
Grants to varied occasions — like Rodeo of the Ozarks, the Hogeye Marathon and the Jones Heart — to assist offset their promotion-related bills.
Flashback: Springdale lower its promotional finances in 2020 however was in a position to fulfill the grants it dedicated to varied occasions for the 12 months, which is usually about 25% of its annual finances.
Seeing the journey downturn final 12 months, the fee was ready to faucet into reserve funds to satisfy obligations, if wanted. It wasn’t needed.
The underside line: The fee has budgeted $423,000 in income for 2021, understanding that Fayetteville’s occasions within the fall — like UA soccer video games and Bikes, Blues and BBQ — ought to imply extra in a single day stays.
Go deeper into this collection: Fayetteville’s tourism budget bounces back thanks to restaurant-goers.
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