Hotel/Motel Tax collections in 2018 rose in another record-breaking year for Fairbanks tourism industry Fairbanks had four consecutive record-breaking years of hotel/motel tax collections. The total hotel/motel tax collections (combined total of the Fairbanks North Star Borough, including the cities of Fairbanks and North Pole) have increased year-over-year:
- 5% increase in 2015
- 9% increase in 2016 when collections broke the $5 million mark for the first time
- nearly 3% increase in 2017
- and nearly 6% increase in 2018.
The growth in hotel/motel tax collections has been primarily attributable to growth in winter tourism during this period. When analyzing summer and winter bed tax collections from 2008 through 2017, the average growth of the five-month May through September summer period was flat, whereas the seven-month October through April winter period grew an average of nearly 6%. In 2008, winter collections accounted for 26% of the total collections; whereas in 2017, winter accounted for 38% of the total collections. Winter 2017 collections broke the $2 million mark for the first time. The lion’s share of collections continues to be during the summer period.
However, for the first time in well more than a decade of record-keeping, winter collections decreased slightly by 1% between 2017 and 2018. Despite this dip, 2018 is the second highest year for winter collections with 2017 being the highest. Summer collections increased a significant 10% between the two years; 2018 was the highest ever for summer collections with 2008 as the second highest.
To access the Explore Fairbanks Annual Report for 2018, go to https://www.explorefairbanks.com/about-explore-fairbanks/what-we-do/annual-report.