Profits for the hotel industry
Sales tax collections in the month of June totaled $6,872,394. Annual year-to-date collections total $38,275,747, which is a 10 percent increase over 2020.
While many North American Industrial Classification (NAICS) categories saw increases over last year, one of the highest percentage gains came in NAICS 721: Hotel Food, Beverage, & Other Retail. The category has seen a 45 percent increase in year-to-date collections when compared to last year. This is just one indicator of the rebounding travel and tourism industry in 2021.
The EEDA provides a monthly Hotel Barometer that highlights some of the factors to watch in the hotel industry. Lodging tax collections saw significant gains, with a year-to-date increase of 40 percent over 2020. The lodging tax rate in Edmond is 4 percent, which is in addition to the sales tax rate. Gross receipts were up 35 percent year-to-date. In June 2021 alone, gross receipts were more than $1 million higher than June 2020. These statistics reflect not only how well the industry is doing this year, but also how significantly it was impacted last year.
The Hotel Barometer also tracks rooms sold, which is a great indicator of how many travelers Edmond hotels are hosting. The 15 hotels inside Edmond city limits sold a combined 20,757 rooms this month. This is the highest number of rooms sold since the EEDA began tracking this information more than 15 years ago.
Other NAICS codes of interest
Two other interesting NAICS categories continue to be NAICS 445: Grocery & Liquor Stores and NAICS 722: Restaurants, Drinking Places & Caterers. NAICS 445 has seen a slight decrease of 5 percent in spending year-to-date while NAICS 722 has seen a 22 percent increase. This is likely an indicator of people eating out more as well as leveling out their spending associated with NAICS 445, which saw record collections in 2020 due to the COVID-19 pandemic.
NAICS category comparisons between 2020 and 2021 will continue to provide insight into how the economy is recovering after last year as well as insight into how 2020 may have changed spending habits for the future.
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About Sarah Dickson
Sarah Dickson is the communications director for the Edmond Economic Development Authority (EEDA). Sarah has been with the EEDA more than 10 years, serving in multiple communications roles. She is responsible for producing demographic, workforce, economic, and statistical reports as well as managing all communications for the organization.
Sarah is a graduate of the University of Oklahoma Economic Development Institute (OU/EDI) and Leadership Edmond Class XXV. Sarah serves on the boards for the Public Relations Society of America – Oklahoma City Chapter and the Oklahoma Council on Economic Education. She is also an active member of the Oklahoma Venture Forum.
Sarah has earned her Accreditation in Public Relations (APR) as well as the designation of Certified Economic Developer (CEcD).