Showing posts with label Williamson County. Show all posts
Showing posts with label Williamson County. Show all posts

Hotel Receipts Up in Region for FY11

The good news is hotel bed tax receipts were up for the 12 months ending in June 2011. The bad news, it's extremely difficult to match the state figures with local bed tax receipts. That shouldn't be the case (more on that later), but now the numbers.

After many areas took a battering last year in lodging revenues, most counties in Southern Illinois saw an increase in FY 2011.

Overall, the Illinois Department of Revenue reported that the state saw a 3.3 percent overall increase in bed tax collections throughout the 17-county region from Mount Vernon south (at least in the 11 counties where they broke out figures; data wasn't available for the other six). Area lodging operators collected more than $3.1 million for the state's 6 percent bed tax from travelers in the region.

For the last couple of decades Mount Vernon and Marion have boasted the most hotel rooms along with interstate interchanges, but for the last two years Williamson County has surprassed Jefferson County in taxable hotel revenues.

Jefferson County lodging operators brought in more than $13.5 million during the 12 month period compared to Williamson County's $13.9 million. Both counties saw revenues just 7.3 to 7.4 percent.

Jackson County saw revenues go up 1.6 percent to $8.7 million. Massac County also saw a small increase of just 1.2 percent to $4.35 million, but river flooding is also partly to blame with two of Metropolis' major properties closed at times this spring due to the high water, (one of which was still closed for remodeling as of a few weeks ago).

Franklin County comes in fifth with $2.9 million in hotel revenues, down 10.6 percent during the year, and down 16.9 percent compared with two years earlier.

Randolph County with hotels in Chester and Sparta saw a 10.5 percent drop in revenues last year, down to $2.5 million, but they're still up 7.8 percent over the last two years.

Union County rounds out the top seven counties with its establishments reporting just under $1.6 million in revenue. They were down three-tenths of a percent compared with the year before. Unlike its larger competitors, Union County sees most of its revenues come from smaller specialty properties of cabin rentals and B&Bs rather than hotels and motels.

In reality, Union County's lodging operators actually played a bigger role, as the state counts establishments by their zip codes rather than their actual location. Thus all of the places with Makanda zip codes including Giant City Lodge, are included in Jackson County's totals.

Likewise Williamson County loses three cabins with a Carbondale zip code to Jackson County, but picks up two at the Lake of Egypt with a Creal Springs zip code that are actually in Johnson County.

Elsehwere Saline County experienced a 13.1 percent increase with hotel revenue up to nearly $1.3 million. Perry County hotels followed with nearly $1.2 million, pretty much the same as the year before.

White County with most of its lodging on its north side at Grayville and Interstate 64 reported $1.1 million in hotel revenue.

Hardin County lodging operators reported $356,000 in revenue down 2.1 percent from the year before while Pope County saw a 35.9 percent increase in revenues reported though from a smaller base. Their operators reported $262,000 in room rentals.

No figures were made available for the industry in Alexander, Gallatin, Hamilton, Johnson and Pulaski counties (as well as White County for previous years). The state doesn't release county level information if there are fewer than four lodging establishments paying state taxes.

Another problem is that even when the zip code issue is taken into account, the state's still four or five establishments short in Williamson County alone. Either some folks aren't paying the state taxes, but should, or there's yet another issue with the Department of Revenue's procedures.

The difference between the state and county's figures in Williamson County is more than a vacation rental, or an outdated motel or two that's more residential than tourist any more. It's the equivalent of one or two of the largest hotels not paying.

I'm beginning to wonder if the state is counting the location of the hotel management company and where they write the monthly check rather than the actual location of the hotel. All the Department of Revenue is concerned about is, well, the revenue.

The problem is that the Williamson County Tourism Bureau may be getting shortchanged in state funding, just as Carbondale benefits and Southernmost Illinois Tourism loses when Giant City Lodge and all the other Makanda-addressed facilities on the Union side of the county line get counted in Jackson. Except in Williamson County's case the figures may be more significant.

Local certified convention and tourism bureaus are funded by local bed tax collections as well as a state Local Convention and Tourism Bureau (LCTB) grant. The General Assembly appropriates the overall amount for the LCTB grants and the Illinois Bureau of Tourism uses a formula to distribute the funds proportionally among the various bureaus. The formula is based on three components; the state's bed tax collections from the bureau's service area being the biggest component, with restaurant sales tax collections being the second biggest factor.

The problem? IBOT gets the figures for their formulas from the Illinois Department of Revenue.

That's a mystery I don't have time to unravel right now, but at least we can focus on the positive: More people are spending more money in Southern Illinois than they did the year before.

IHSA Looking for Sites for Football Championship Games in 2013

The Illinois High School Association needs a new home for the state football championships on Thanksgiving weekend starting in 2013. Changes in the Big Ten means U of I will need their field on even years.

SIU's new arena would provide the warmest location for the annual match-up. How about some regional cooperation between Carbondale and Williamson County tourism bureaus? It would take all the rooms in both counties to handle this, but it could be a big boost for late fall tourism.

Mount Vernon Tourism Numbers Up from 2009

Despite all the hoopla between Mount Vernon and Marion over the new STAR Bonds law, it's the King City who's had a better start to 2010 in terms of tourism than Williamson County.

Bed tax collections are up 3 percent for the first four months of 2010 in Mount Vernon compared to the same period in 2009. Marion and Williamson County has seen a 15 percent drop during the same time period.

Mount Vernon saw collections rise from around $176,000 to $182,000 while Williamson County suffered a drop from more than $235,600 down to just over $200,400. (However, one operator, Motel 6 has not paid January, March and April payments which should be at least $6,000 based on past years).

Mount Vernon Tourism Director Bonnie Jerdon told the Register-News that when compared to the same time in 2008 before the recession hit the tax receipts are down only $1,200.

Going back two years show receipts in Williamson County down just over $13,500 or about 6 percent compared with the first four months of 2008, though if the delinquent hotelier pays, then that amount would be cut by more than half.

The City of Mount Vernon charges a 5 percent bed tax which is split 60/40 with the tourism department and the city. The city also uses its home rule power to impose another $2 a night surcharge on room rentals.

(I believe that the 2 percent the city keeps is used for operate the city's west side municipal building near Holiday Inn where the tourism bureau and chamber of commerce have their offices.) By state law all of the 5 percent is supposed to go to tourism efforts. Historically, Mount Vernon has barely skirted around such requirements and occasionally has completely ignored them.

In Williamson County, the 5 percent bed tax is split 40/60 between the Williamson County Tourism Bureau and the Williamson County Events Commission, with the latter's share going to pay off the bonds used to finance the construction of the Williamson County Pavilion.

Marion hotel operators contribute the 2010 drop to the national economy, the colder-than-normal temperatures in Florida that discouraged some of the snow birds to travel south, or at least delay their travel; and a surge of business during the winters of 2008 and 2009 when ice storms caused major power outages in southernmost Illinois and western Kentucky and sent hundreds of residents north searching for places to stay with electricity and heat. This year's winter proved to be much milder.

Hotel and motel operators within the city limits of Marion earn about 85 percent of the bed tax revenue generated in the county.

New Census Estimates Show Williamson Growing

Williamson County's incorporated communities gained 424 residents from 2008 to 2009 according to the latest census population estimates released Tuesday.

The Census Bureau estimates Herrin grew the most with a net gain of 154 new residents, followed by Carterville with 110 new residents. Marion, which is up 1,425 residents for the decade grew by just 71.

For the decade, population estimates for Herrin are up 1,152 residents, and for Carterville by 902.

  • Bush - up 1 (263)
  • Cambria - up 8 (1,354)
  • Carterville - up 110 (5,518)
  • Colp - up 2 (231)
  • Crainville - up 35 (1,362)
  • Creal Springs - up 5 (721)
  • Energy - up 11 (1,195)
  • Freeman Spur - up 1 (280, includes Franklin Co. portion)
  • Herrin - up 154 (12,450)
  • Hurst - up 5 (792)
  • Johnston City - up 19 (3,491)
  • Marion - up 71 (17,460)
  • Spillertown - up 2 (225)
  • Stonefort - up 1 (292, includes Saline Co. portion)
  • Whiteash - up 2 (277)

Overall, the Census Bureau pegs Williamson County's population as of July 1, 2009, at 65,169, or an increase of 3,935 people since the 200 census. It was the only county in the region that recorded population increases in 2009 in all its communities.

Throughout the region, most communities continued to see population declines. Only a handful proved otherwise.

Carbondale was up 194 in 2009 to an estimated population of 26,094. Others with slight growth in 2009 included Benton, up 6; Brookport, 8; Cypress, 1; Goreville, 5; Marissa, 9; New Burnside, 1; Olney, 38; Red Bud, 6; Sesser, 1; Thompsonville, 1; Valier, 4; Vienna, 6; and Zeigler, 1.

Marion's Hotel Industry Surges in 2009

Some thoughts on 2009 lodging in Marion

Despite the bad economy last year, tourism grew in Marion and Williamson County at least in terms of hotel taxable receipts.

Bed tax collections for the 25 active lodging establishments in the county grew by 15.5 percent last year over 2008 to $791,741.06. That was the best since 11.3 percent growth in 2005.

The bed tax receipts show tourists and travelers spent more than $15.8 million directly on lodging last year in the county with all but about 15 percent of that spent directly with establishments inside the Marion city limits.

In both 2005 and 2009, much of the growth could be attributed to a major new hotel being added to the mix. Country Inn & Suites opened in December 2008. Previously, Fairfield Inn had been the last player added.

With Country Inn, the Big 6 hotels in Marion became the Big 7 and collectively increased their market share from 78.2 percent to 79.1 percent, but the new hotel didn't cannibalize its competitors as some had feared. The other six major hotels collectively saw their taxable receipts grow by 6.6 percent in 2009 versus just a 1 percent jump in 2008.

All sectors but the oldest motels in the county saw growth last year.

Overall the Big 7 were up 16.8 percent, the mid-level motels (both the small chains and independents) were up 19.1 percent, and the specialty lodging category of bed and breakfast inns, cabins and vacation rentals grew by 41 percent thanks to new units being added.

The lodging operators inside the Marion city limits attributed for 84.8 percent of the market share.

All lodging operators in the county from the smallest vacation house rental up to the largest hotels pay a bed tax equal to 5 percent of their receipts to the county which is split 40/60 between the Williamson County Tourism Bureau and the Williamson County Events Commission (the funds to the latter group goes to pay the financing costs for the Williamson County Pavilion). The actual receipts taken in by the hotels are actually greater than the taxable receipts as rentals for more than 30 days are not covered by the bed tax.
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