(The Center Square) – Austin, Texas, is well known as one of the best hot spots for tourism in the country. U.S. News ranked it as one of the best places to visit in 2023.
The city is seeing big signs that the pandemic that hindered travel is over as it brings in record revenues in the hotel tax it collects.
The city’s revenue from taxes it collects from hotels is expected to increase from a low of $50 million when travel was devastated by the pandemic back up to a projected $154 million in 2024, according to a report to the city council.
Wesley Lucas of the city’s tourist bureau Visit Austin attributed the increase in the hotel tax revenues to people returning to the city after the pandemic and what the city likes to refer to as a “seven-day-a-week market” for hospitality.
Lucas attributed the spike to “the return of tourism, which includes meetings, conventions, sporting events, major events and festivals, many of which saw record attendance this past year.” He said inflation also played a role.
According to city budget records, the hotel occupancy tax revenues brought in $81.7 million in 2019. During the pandemic the following year, that revenue dropped to $50 million. In 2021, it increased to $59.1 million.
But 2022 saw a big surge in tourism as hotel tax revenues increased to $113.9 million in 2022 and now is projected to jump to $154 million by 2024.
