Tourist tax revenue up 18 percent

By Jim Ross
Copyright 2000 Times Publishing Company
Article date: October 13, 2000
 

Mary Craven knew that Citrus County's tourism year started strong and finished strong.

Now, she has the numbers to support her theory.

Citrus collected almost 18 percent more in tourist tax revenue during 1999-2000 than it did during the previous year, recently released statistics show.

The tax is a 2 percent charge assessed against people who stay at motels, hotels, recreational vehicle parks and other short-term lodging places. The Tourist Development Council spends the money to attract more tourists.

During the 1999-2000 fiscal year, from Oct. 1 through Sept. 30, the county collected $290,808 in tax receipts. That compares with $247,458 collected during 1998-99.

Craven, the county's tourism program coordinator, sensed that a good year was in the making. During October, November and December 1999, the tourist tax receipts were up 33 percent beyond receipts collected the previous year.

Then in September, the end of the fiscal year, the county collected $6,000 more than it did during the same month in 1999.

Revenue collection is considered a key indicator of visitor traffic. It also is a barometer of how successful the tourism council's marketing efforts have been.

But the tax collections serve as an imperfect measuring stick. The figures could reflect room rate increases (the greater the rate, the more tax revenue generated) and better compliance by businesses that should be including the tax on their customers' bills.

Still, Craven said the increase reflected a true uptick in visitor traffic. By her reading, several factors were responsible for the boost.

First, the county collected $11,965 in past-due receipts from Port Paradise Resort, which recently was sold. The past owner, Tourist Development Council member Jim Dicks, told the county he thought his former manager, who was prosecuted on charges that she stole from the hotel, was paying that tax bill.

Craven said the $11,965 included the amount due during 1999-2000, anyway.

Second, during the changeover in Florida Power leadership, many executives have been in and out of town for meetings.

And then there were the factors beyond anyone's control.

"Last year, there were manatees in the river all year long, which appeared to be a bit of an anomaly," Craven said. "This year, it happened again, and the dive shops were pretty steady through the summer. So I think what we see is that our summer business, which typically has been the soft season, is really picking up.

"A lot of our marketing has targeted summer and targeted Floridians in trying to get them to spend their summers here in Citrus County," Craven continued.

But the marketing effort, which includes TV commercials in Orlando and Tampa Bay, is only part of the equation. Increasing gasoline prices also has helped, giving Floridians an economic incentive to vacation close to home.

"I'm thrilled," Craven said about the tax information. "I think that the industry working together and coming together, too, on some packaging and some partnerships is really working. And they are the ones that are really making it happen."
 

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