Hospitality & Tourism

Hotel, meal tax revenue increase in bright spot for hospitality industry

PBN FILE PHOTO/BRIAN MCDONALD
THE NEWS SEEMS GOOD for hoteliers like Win Baker, owner of the Abigail Stoneman Inn in Newport, as meal and hotel taxes through the first five months of the year increased 4 percent over the same 2009 period.
Posted 7/28/10

PROVIDENCE – Reflecting good news for the hospitality industry, the state said Wednesday it collected more meal and hotel taxes in the first five months of the year than the same period last year.

From January to May, receipts from meals taxes increased 4 percent over the same period in 2009 to $7.4 million, the R.I. Division of Taxation said Wednesday. Hotel tax revenue - excluding Newport - increased 9.25 percent to $569,266.

(The hotel tax numbers exclude Newport because the city collects its own hotel tax and sends the state’s share to Capital Hill. For all other municipalities, the state collects the hotel tax and delivers the local share to the municipalities.)

“I know that things are really moving in the right direction. People are feeling enthusiastic,” said Dale Venturini, president and CEO of the Rhode Island Hospitality Association.

The meals tax increase was similar to the jump between the first five months 2009 compared with the year prior, when revenue went up 3.3 percent.

The jump in hotel tax revenue contrasts with an 11.9 percent drop from January through May 2009 compared with the same five-month period in 2008. This year, hotels were filling more rooms but at lower rates, said Martha Sheridan, president and CEO of the Providence Warwick Convention and Visitors Bureau.

Citing data from STR Global, Sheridan said Rhode Island hotels had an average daily occupancy rate of 53 percent during the first five months of 2010 compared with 45.5 percent during the same months last year. The average room rate fell to $98.63 from $105.92.

And while rates may have fallen, Sheridan said they started relatively high to begin with, leaving more room for them drop as hotels competed to attract guests in a difficult economy.

Mother Nature has also provided a boost by delivering warm, rain-free weather. And the Warwick area received a bump as workers repairing buildings damaged by the March floods sought temporary quarters. The average daily occupancy in April hit 82.2 percent in the city, compared with 54.1 percent last April. In May the occupancy rate fell to 62.2 percent, still above last year’s 58.5 percent.

Calendar
PBN Hosted
Events

Join PBN and two panels of successful female executives, business owners and entrepreneurs as we delve into what women should do to advance their careers, and become leaders in the corporate world and their own enterprises.
  • Book of Lists Party
    Save the date - January 15, 2015 for PBN's Book of Lists Party at the Providence ...
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement