The Van Buren Advertising and Promotion Commission saw less-than-expected tax receipts from the city’s lodging and restaurants in October.
According to the latest figures from the Van Buren A&P, October’s tax receipts were $49,870, or 5.5 percent below projections.
“Lodging has struggled,” Van Buren A&P Executive Director Maryl Purvis said. “We’re hearing that a lot in other places, too. The stock market is doing well but it’s not translating to more travel.”
Although lodging receipt figures were“mostly flat” in October, a traditionally heavy tourist month, Purvis noted that most of the drop in projected revenue came in the restaurant sector.
However, with two new restaurants set to open up in downtown Van Buren this year, Purvis expects to see improvements in those figures.
“I think in 2018 we’ll see growth, not just in downtown with Pasta Grill and Larry B’s, but all over Van Buren,” Purvis said. “I’m projecting a 1 percent increase for 2018. We’re headed in the right direction.”
A 2 percent increase in the city’s tax on motels and hotels went into effect November 2016. It’s now 3 percent. The Van Buren City Council approved the 2 percent increase to the city’s tax on hotels and motels in November 2016. The new 3 percent tax is used to provide more funds for improving downtown Van Buren. The increase is expected to provide about $110,000 annually in additional revenue and help fund operation of a trolley bus, which was purchased for about $144,000 and began operation in April 2016.
About 9,000 people rode the Van Buren trolley bus in 2017, Purvis said. It was the first full year of operation for the trolley bus, which works in conjunction with the Arkansas & Missouri Railroad passenger train to transport riders during the tourist season.