Can it be both?

[wilde_oscar]

The first story in this week's news is about how hotel occupancy is up... which is followed by a rant that income from the tourism tax is down. My question is, how can it be both?

 

[ADP]

The first story in this week's news is about how hotel occupancy is up... which is followed by a rant that income from the tourism tax is down. My question is, how can it be both?

Not sure, but it could be that rooms are much cheaper because of the downturn in the economy. If room rates are way down (i.e. 4 for 7) then the 11.5% sales tax would be less since the total cost of the stay is drastically cheaper.

I'm certainly no Accountant, but just trying to rationalize it.

 

[wilde_oscar]

I think Pete even mentioned that it is not because rooms are cheaper?

 

[DisneyKevin]

Hotel occupancy is up for the last quarter.

Tourism tax is down for the year.

 

[wilde_oscar]

ah... that's a possibility. but in spending about 15 min. reading articles from the Orlando Sentinel I find a few things that don't add up...

The hotel tax that is to be used to promote tourism is being defended by the hotels so that it is not raided to pay for local services.

http://blogs.orlandosentinel.com/business_tourism_aviation/2009/01/tourism-indus-1.html

The money for the arena is from a bond issue that already passed. Which means the money is allocated for a specific purpose for which the bond is enacted. The money for the new arena didn't come from the hotel tax which is being used to promote tourism.

http://www.orlandosentinel.com/business/custom/thrifty/orl-venues1409jan14,0,6509060.story

"The new arena, featuring a home court for the Orlando Magic, already has money from a $310 million bond issue sold last March and is not expected to face a slowdown. Construction has begun in Parramore, just west of downtown."

And there is an effort to properly enforce the hotel tax for online bookings to increase revenue to the hotel tax.

http://blogs.orlandosentinel.com/business_tourism_aviation/2009/01/orange-mayor-bo.html

So what I am still not getting is the refrain that tourism in central Florida is bad, when the Podcast crew is saying that DU is doing well and DTD is packed and occupancy is up. I am also not getting how the Magic getting a new area has anything to do with the tourism tax, because it isn't funded with the tourism tax is was funded with a bond passed almost a year ago. Stadiums do not get designed, funded and built over night... the ball for this was rolling a long time ago.

If property taxes are down and that is impacting basic local services is one thing, if hotel occupancy is down and is impacting spending to attract tourism is another... but a Bond measure to build a new stadium really doesn't impact either of those, does it? I am not defending the Magic, or the stadium being built. But there are some details being left out as to how the monies are allocated and what revenue is assigned to what project. And all that took to find out was a google search on tourist tax "tourism tax site : orlandosentinel.com"

 

[wilde_oscar]

and I am guessing having a murder rate twice that of Detroit isn't helping?

http://www.orlandosentinel.com/news/local/crime/orl-murders2009jan20,0,1132698.story

 

[wilde_oscar]

or meth labs in hotels?

http://www.orlandosentinel.com/news/local/orange/orl-b3report21_409jan21,0,6045619.story

 

[wilde_oscar]

and the Magic have the best record in the NBA?

http://www.orlandosentinel.com/sports/orl-sportsmagicintro21a012109jan21,0,4957944.story

 

[DWFan4Life]

Thank you for the links you've given, I'll go and check it now.