Galveston Hotels by David Stanowski 17 May 2009Abstract: The hotel business is an important part of the Galveston economy. With the national hotel business mired in a deep slump, how is the local hotel business faring? Introduction: E-forecastin g.com in conjunction with Smith Travel Research announced that the Hotel Industry's Pulse index (HIP) declined at an annual rate of 21.9% in March and 21.4% in April. HIP is a composit e indicator that gages business activity in the U.S. hotel industry in real-time. Simply put, it tracks month ly overall business conditions in the industry, like an industry GDP, and points in a timely way to the changes in direction from growth to recession or vice versa. The composite indicator is made with the following componen ts: revenues from consumers staying at hotels and motels adjusted for inflation; room occupancy rate and hotel employment; and other key economic factors that influence hotel business activity. Full article: Hotel News Now 1
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Abstract:The hotel business is an important part of the Galvestoneconomy. With the national hotel business mired in a deepslump, how is the local hotel business faring?
Introduction:E-forecasting.com in conjunction with Smith Travel Research
announced thatthe Hotel Industry's Pulse index (HIP) declined at an annualrate of 21.9% in March and 21.4% in April.
HIP is a composite indicator that gages business activity in theU.S. hotel industry in real-time. Simply put, it tracks monthlyoverall business conditions in the industry, like an industryGDP, and points in a timely way to the changes in directionfrom growth to recession or vice versa. The composite
indicator is made with the following components: revenuesfrom consumers staying at hotels and motels adjusted forinflation; room occupancy rate and hotel employment; andother key economic factors that influence hotel businessactivity.Full article: Hotel News Now
The hotel industry’s occupancy rate fell 14.0% on a year-over-year basis to end the week at 53.6%. The average daily roomrate dropped 9.8% to finish the week at $97.58. Revenue peravailable room for the week decreased 22.4% to finish at$52.32.Full article: Hotel News Now
The following graph shows the hotel occupancy rate from 2001to the present.
The next graph shows Galveston hotel receipts divided by theProducer Price Index (PPI) of commodities, which is a moreaccurate method of adjusting data for inflation than theheavily politicized CPI index.
Hotel Galvez $704,259 228 $3,089Source: Texas Comptroller
Conclusion:The hotel business is very important to the Galveston economycontributing over $756 million between 2001-2008. Galvestonlevies a 9% municipal Hotel Occupancy Tax, in addition to the6% state HOT, that is critical in promoting tourism to the City.
Although some of the $756 million was exempt from HOTlevies, the hotel business has generated millions of dollars inHOT for the City over the last eight years.
Fortunately, there is no evidence that Galveston hotels aresuffering the declines that are being seen in many areasaround the country. Demand from residents displaced fromtheir homes by Hurricane Ike; contractors, consultants, andgovernment workers helping in the cleanup and rebuild; and
tourists wishing to visit the Island are keeping occupancy androom rates at relatively healthy levels. This is one localeconomic indicator that must be tracked very closely as thepost-storm rebuild eventually peaks and declines, and theinternational recession begins to effect the local economymore dramatically.
Local Hotel Occupancy Tax
For more information on the Galveston Economy: Click Here