Hospitality collections leveling out

Published 11:20 am Friday, August 24, 2012

Vicksburg’s hospitality tax collections remained above last year’s, but the August report showed collections dropped from previous months, the Vicksburg Convention and Visitors Bureau Board of Directors was told Thursday.

Executive director Bill Seratt also said the July occupancy rate was down by 11.1 percent, from 68.8 percent in 2011 to 57.7 percent this year.

Seratt said the August tax report showed tax collections were about $97,284, up about $2,607 from the $94,677 reported in August 2011.

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The VCVB is supported by a 1 percent sales tax assessed by hotels and restaurants in Vicksburg and Warren County on all rooms and food and beverages. The August figures represent taxes collected in June.

“I believe we are slowly getting back to normal,” Seratt said after the meeting, adding the August 2011 tax figure was close to the average collection for June.

Hospitality taxes and Vicksburg area hotel occupancy rates received a boost when the Grand Gulf Nuclear Station’s outage began in January. The project, which ended in June, employed about 4,000 contract workers, most of whom stayed in Vicksburg hotels.

The hospitality tax report for March, which reflected January collections, was $103,424, and subsequent tax collection reports showed collections in excess of $100,000.

The June report, which represented April tax collections, was $108,605. The July report, which reflected May collections, was $109,232.

Seratt said the July occupancy rate may have dropped because people decided not to travel to the area because hotel rates were still up from the outage. He said the hotels’ average daily rate, how much they charge per day for a room, remains up. He said the 68.8 percent rate for July 2011 is about average for July.

“I believe our numbers are going to remain up for the rest of the year,” he said. “And next year (with the Sesquicentennial of the Siege of Vicksburg) it will be phenomenal.”

In other action, the board:

• Discussed the opening of the U.S. Army Corps of Engineers Lower Mississippi River Museum and Riverfront Interpretive Site.

• Learned three new travel counselors have been hired for the visitors centers.

• Received a copy of the VCVB’s fiscal 2012 audit for review.