There has been a lot of chatter on the local blogs about the increased revenue being generated by the hotel tax and commenter's complaining about an increase in the room rate rather than in the number of room stays at Erie area hotels.
Well here are the numbers I've heard broken down: there are enough hotel rooms in and around Erie to equal roughly 1.5 million room nights available per year...in 2007 nearly 2/3 of the room nights were sold equalling roughly 1 million room stays in and around Erie...at an average per night stay of about $86. Both the number of room nights (up slightly) and average price tag (up significantly) are why national developers are rushing to build around the 90 and 79 core.
Despite all of the complaints, it doesn't matter if the number of nights is up only slightly, the $86 per night average is significant in that based upon the age old principle of supply and demand local operators are able to charge and get the higher rate.
The debate over the room tax hasn't changed much since it was first instituted over five years ago, most arguing that it's become an accepted part of the cost of travel. I'm not sure when increased taxes ever became acceptable. What's significant in this story is not how much money is collected, but how that money is then spent.
Currently the bulk of the room tax is dedicated to cover the operational shortfalls of the Bayfront Convention Center with the remaining sliver going to Visit Erie PA (former the Convention & Visitors Bureau) for tourism promotion.
While local politicians and the Convention Center authority would have you believe that those economic shortfalls will decline as business picks up at the Convention Center, the fact is as time goes on the operational costs of running the center, with ever increasing energy costs and operational maintenance and upkeep (if it actually gets done) will continue to rise and the deficits will only increase.
Since the bulk of the Convention Center's business thus far stems from cannibalizing existing Authority venues like the Tulio Arena and the Warner Theater, those locations will only see their operational deficits increase significantly. Once again it's the taxpayers that will be left holding the bag and picking up the tab.
Then tack on the ridiculous bond deal struck to fund the still incomplete, publicly owned, Convention Center Sheraton Hotel and once again taxpayers wallets will take a huge hit.
Of course the geniuses at the courthouse could always add these costs on the ever growing list of things that will be paid for by all of the local gaming revenue cut which is scheduled to pay for the runway extension, community college, public safety building, Erie Zoo and other regional assets. Did I miss any?
Well here are the numbers I've heard broken down: there are enough hotel rooms in and around Erie to equal roughly 1.5 million room nights available per year...in 2007 nearly 2/3 of the room nights were sold equalling roughly 1 million room stays in and around Erie...at an average per night stay of about $86. Both the number of room nights (up slightly) and average price tag (up significantly) are why national developers are rushing to build around the 90 and 79 core.
Despite all of the complaints, it doesn't matter if the number of nights is up only slightly, the $86 per night average is significant in that based upon the age old principle of supply and demand local operators are able to charge and get the higher rate.
The debate over the room tax hasn't changed much since it was first instituted over five years ago, most arguing that it's become an accepted part of the cost of travel. I'm not sure when increased taxes ever became acceptable. What's significant in this story is not how much money is collected, but how that money is then spent.
Currently the bulk of the room tax is dedicated to cover the operational shortfalls of the Bayfront Convention Center with the remaining sliver going to Visit Erie PA (former the Convention & Visitors Bureau) for tourism promotion.
While local politicians and the Convention Center authority would have you believe that those economic shortfalls will decline as business picks up at the Convention Center, the fact is as time goes on the operational costs of running the center, with ever increasing energy costs and operational maintenance and upkeep (if it actually gets done) will continue to rise and the deficits will only increase.
Since the bulk of the Convention Center's business thus far stems from cannibalizing existing Authority venues like the Tulio Arena and the Warner Theater, those locations will only see their operational deficits increase significantly. Once again it's the taxpayers that will be left holding the bag and picking up the tab.
Then tack on the ridiculous bond deal struck to fund the still incomplete, publicly owned, Convention Center Sheraton Hotel and once again taxpayers wallets will take a huge hit.
Of course the geniuses at the courthouse could always add these costs on the ever growing list of things that will be paid for by all of the local gaming revenue cut which is scheduled to pay for the runway extension, community college, public safety building, Erie Zoo and other regional assets. Did I miss any?
1 comments:
You are pretty Full.
Pretty Frontal on it.
And, relatively Lucid.
"Did I miss anything?", you ask.
Yup.
The more things change, the more they stay the same.
We hit and miss (mostly miss) with little, scratch that,..........
NO foresight.
Note that Bel Aire is alright and the inner city hotels harangued elsewhere are not money havens. Nor is a hotel in Cambridge Srpings or Corry likely to set the world on fire. But, they add up as all are in the county.
I-90 is the action area....anywhere in Summit.
Here is the planning of our leaders. Years ago, at the same
I-90 exit as the casino, if you headed into Erie instead of out, you bumped into the Erie County Fieldhouse( and a decent Swedish restaurant if I recall). This was our gala place for Erie Engineers Week Trade Shows and the like, with drinks at the only place around, the Ramada Inn.
Tullio Center moved on board and the action now went downtown. It replaced the County Fieldhouse with a Tullio Convention Center. Erie Engineers Week shifted downtown (among other hoopty-doos).
The Bay Front is the next tier to take away from Warner and Tullio until both become like the County Fieldhouse.
Get this: what if the Erie County Fieldhouse had been left alone for years and then made into the equivalent Bayfront Center recently? All the action is right there for everybody. All the hotels are right there for everybody. The Mall is a shuttle away every half hour. The Center was ALREADY there. But we wasted that one, and are wasting the next two (Warner and Bayfront) with NO long term planning or thinking on how the hell to develop anymore.
The Erie County Fieldhouse was in the perfect spot at the wrong time. It would have had symbionic growth with casinos and hotels and gatherings NOW.
Where else are we shooting ourselves in the foot by following this same scenario of lack of foresight for growth?
Hint: can you spell A-i-r-p-o-r-t?
Best regards,
Danny Lucas
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