(The Center Square) – Tourism has rebounded since the pandemic in the city of Houston as its hotel tax revenue has more than doubled in the past two years.
The city took in $104.9 million in hotel tax revenues in 2023, according to a recent report. That’s more than double the $47.4 million it brought in 2021, when hotels struggled during the pandemic. The hotel revenues increased 74% in 2022 to $82.5 million and then jumped another 27% in 2023 to the $104.9 million.
The city stated the increases were due to the average daily rate of rooms increasing from $100.89 a night in fiscal year 2022 to $115.75 a night in FY 2023. The occupancy rates of the hotels also increased from 2022 to 2023 jumping from 56.6% to 62.1%. In 2020 during the start of the pandemic, hotel occupancy rates were at 39.8% in Houston. Daily hotel room rates also dropped to $86.48 on average in 2020.
There are multiple taxes tacked on to hotel bills in Texas. In Houston, there is a 6% state tax, a 7% Houston tax, a 2% Harris County tax and another 2% Harris County – Houston Sports Authority tax.
The city of Houston estimates that travel and tourism contribute $17 billion to the city’s economy every year and account for more than 120,000 jobs.
Houston First, a local government corporation that runs the city’s convention and performing arts facilities, did not respond to an email seeking comment.
