Award winning calculator helps local agencies predict hotel occupancy tax revenues
ATLANTA, GA. – PKF Hospitality Research, LLC (PKF-HR) announced the release of the “Hotel Occupancy Tax Calculator,” an Excel-based tool that gives local agencies the ability to incorporate objectively developed forecasts into their estimates of future hotel occupancy tax collections.
“The calculator helps agencies improve their projections and avoid operational inefficiencies, such as unjustified budget cuts, hiring freezes and changes in tourism promotion efforts,” said Jamie Lane, senior economist with PKF-HR.
The award-winning calculator estimates taxed revenues for the next five years using the PKF-HR Hotel Horizons econometric forecasting methods. These highly accurate forecasts come from estimating the stable statistical relationship between measures of the economy and hotel performance for the metropolitan area in which the tax district is located.
“The Hotel Occupancy Tax Calculator allows users to customize their forecasts based on the taxing juristiction historical data and also make alternative assumptions about key inputs, such as occupancy tax rates,” Lane added.
The PKF-HR effort to assist local agencies dependent on the occupancy tax was recognized with an “Extra! Extra! Hear All About It” award at the 2014 Americas Lodging Investment Summit (ALIS) conference.
“The calculator makes the work of Destination Marketing Organization (DMO) and Convention and Visitor Bureau (CVB) managers easier by automating and improving occupancy tax revenue predictions. Important local agencies, such as stadium authorities, airport authorities and other public/private ventures, also will benefit. Linking future occupancy tax collections to future economic and hotel market conditions in jurisdictions represents a major innovation,” said R. Mark Woodworth, president of PKF-HR.
“Historically we have prepared our own lodging forecasts to project the tax revenues that will fund our organization,” said Gregory Pierce, EVP and CAO/CFO of the Atlanta Convention & Visitors Bureau. “The PKF-HR Hotel Occupancy Tax Calculator provides a rigorous and objective opinion that we weigh against our internal estimates.”
DMOs and CVBs can supplement the benefit of the Hotel Occupancy Tax Calculator by analyzing additional editions of the Hotel Horizons reports that drive the tool. “In addition to the Hotel Horizons forecast report for Chicago, we added subscriptions to Hotel Horizons reports for five other lodging markets. This allows us to benchmark our hotel performance versus some of our closest competitors,” said David E. Czechowski, director and senior economist in the research and analysis department of Choose Chicago.
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