Councilman says too many hotels, tax revenue down
By
Ray Gomez
Story Created:
Aug 12, 2009
Story Updated:
Aug 18, 2009
The Laredo Convention and Visitors Bureau is announcing they will be operating with 25% less money this upcoming year, but they will do what they can to re-invent their advertising to get tourists to stay in the Gateway City overnight.
Council expressed their concern at Monday night's meeting on the decrease in the hotel motel tax revenues.
They say we may have too many hotels in Laredo causing the fall in revenue.
Concetta Callahan explains.
With the Laredo Convention and Visitors Bureau's projected loss, and the hotel motel tax not collecting like it should, City Council's left wondering why?
Council member Dr. Michael Landeck says the CVB and local hotels do not cooperate with each other for advertising purposes, possibly contributing to this year's losses.
“For example we don't even know how many people that go to these hotels come from Mexico and how many come from the US. Now isn't that something? Go and figure. Try to start marketing without even knowing such basic things.”
And the decrease in hotel motel tax revenues?
We could possibly have too many hotels in our city.
“The hotels in order to compete with each other try to reduce their rates and once they reduce the rates the amount of money they collect there is then a loss."
"I don't totally agree with that. It's also like saying there are too many restaurants or movie theaters or malls."
The president of the Laredo Hotel and Lodging Association says revenue is revenue.
"If there are too many hotels that means every hotel is suffering less of business not necessarily that the city is suffering if the amount of business is the same."
“We have about 153 rooms here. Last weekend we sold about 140 rooms. On a few days it's been good."
And that's exactly what Council is talking about.
Lowering prices to better compete with each other plus the current economic situation, in turn has a tremendous impact on the hotel motel tax revenues.
Concetta Callahan.
Pro 8 News.
You have indicated this comment should be removed.
The comment has been submitted for review. Thank you .
Outsider said on Friday, Aug 14 at 11:34 AM
Sales are down in every aspect of the economy NOT just the motel/hotel sector. The economy is bad right now, The city needs to adjust thier budgets and STOP trying to waste money on stuff they don't need. That's how a household stays afloat, if you income drops loose all the extras and not invest in new things that waste money!
27756821Add a comment
Most Popular