Assuming that the County Hotel Room Rental Tax collection in December, 2009, is similar to that of December, 2008, there will be an approximately $400,000 drop, or 7% decline, in year to year tax revenue.
This is despite the opening of the downtown 298 room Marriott Hotel in April.
The revenue from the tax is designated for the twin purposes of covering Convention Center debt service and promoting local tourism.
2009 has been 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 predictions of the PKF Consultants Feasibility Study that recommended downsizing the facility (as had the earlier Pricewaterhouse.Coopers market study) or a different use for the site.
