Late Collections Depress Initial October Room-tax Report

A two percent decline in room-tax collections in October compared to last year is expected to rebound after lodging operators send in late payments. Sixty-three properties failed to report by the October deadline, including some larger lodging operators, according to Door County Tourism Zone Commission Administrator Kim Roberts.

Despite the late collections, year-to-date room-tax revenue is still up 4.3 percent compared to 2017. All municipalities with collections have seen an increase in 2018 except the City of Sturgeon Bay and Town of Nasewaupee.

In terms of absolute dollar increase, Liberty Grove is the strongest-performing municipality, collecting $32,824 in additional revenue compared to 2017. Gibraltar and Ephraim are second and third, respectively, in absolute year-to-date collections, with increases of $28,560 and $28,126, respectively.

In October, most municipalities remained relatively flat from 2017 collections. Liberty Grove collections for the month increased 10.8 percent, and Baileys Harbor collections increased 6.6 percent.

Meanwhile, Sturgeon Bay continued to struggle, with the preliminary report showing a 13.9 percent decline in October year over year. That number may rebound when the remaining 63 properties report.

Sister Bay is the only community that appears to have October collections that were as strong as its September collections. The village saw just a five percent difference between the months, which may narrow when collections are fully reported. The strong October is likely due in part to Fall Fest, which fills nearby lodging facilities at relatively high room rates.

Countywide occupancy rates of 52.66 in October did not increase from 2017, but the average room rate rose slightly from $161 to $165.