Revenue from the Lancaster County hotel room rental tax and hotel excise tax fell by $441,411—8%—for all of 2009 versus 2008. The funds are used to pay convention center financing expenses and for promoting local tourism. Total revenue for 2009 amounted to $5,395,603.74.
This is despite the opening of the 298 room Marriott Hotel in April, 2009. However, the 222-room Brunswick Hotel closed soon after the Marriott’s opening for renovation and has not chosen to re-open despite having received a certificate of occupancy.
2009 was a disappointing year for the hotel industry. Industry projections suggest even worse results in 2010.
A drop in room rental tax revenue will put an even greater strain on the convention center to meet or exceed the sponsors’ financial projections. It will make more likely the dire projections of the PKF Consultants Feasibility Study. The report recommended downsizing the facility (as had the earlier Pricewaterhouse.Coopers market study) or an altogether different use for the site.
Maybe Jack and Dale will make up the difference……oh, I’m sorry it’s not April 1st yet!!!!
Call it economy, weather or whatever. Pure and simple, the seniors are dying off and they were the ones that wanted to come to see the farm land and Sight and Sound. Children and ‘Baby Boomers’ have other places they want to see other than farms and outlets. Companies are traveling less and meetings are being cut back just like anything else.
However, the powers-that-be are out there selling how we constantly need more rooms to take care of all the tourists that are coming and will come for our convention center and trolley car city.