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Montana Tourism Tax Committee Presentation Information provided by Smith Travel Research, D.K. Shifflet, Montana Department of Revenue Presentation by.

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Presentation on theme: "Montana Tourism Tax Committee Presentation Information provided by Smith Travel Research, D.K. Shifflet, Montana Department of Revenue Presentation by."— Presentation transcript:

1 Montana Tourism Tax Committee Presentation Information provided by Smith Travel Research, D.K. Shifflet, Montana Department of Revenue Presentation by Mike Scholz Montana Innkeepers Association

2 Purpose n Identify origin of Montana’s hotel guest n Determine purpose of trip (business or leisure) n Look at travel trends in Montana n Examine hotel performance in Montana n Conclusions

3 Montana Feeder Trends Origin of Travel and Relative Percentages

4 State of Origin Source: D.K. Shifflet & Associates

5 Inter-State Origins Source: D.K. Shifflet & Associates

6 State of Origin by Season Source: D.K. Shifflet & Associates

7 State of Origin by Season Source: D.K. Shifflet & Associates

8 State of Origin by Season Source: D.K. Shifflet & Associates

9 State of Origin by Season Source: D.K. Shifflet & Associates

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14 Summary of latest reporting periods on Montana room nights n Origin: 36% Residents - 64% Out of State n Purpose: 52% Business - 48% Leisure n Resident: 67% Business - 33% Leisure n Out of State: 44% Business - 56% Leisure n Total Business Rm/Nites - 44.8% Resident n Total Leisure Rm/Nites - 24.1% Resident n Note: Ave. persons/room – Leisure Business –

15 Montana Performance Condition of the industry

16 Supply and Demand Source: Smith Travel Research

17 Supply and Demand Source: Smith Travel Research % Change Over Previous Year

18 Occupancy Source: Smith Travel Research

19 Occupancy Source: Smith Travel Research % Change Over Previous Year

20 Average Daily Rate Source: Smith Travel Research

21 Average Daily Rate Source: Smith Travel Research % Change Over Previous Year

22 Revenue per Available Room Source: Smith Travel Research

23 Revenue per Available Room Source: Smith Travel Research % Change Over Previous Year

24 Revenue Source: Smith Travel Research

25 Revenue Source: Smith Travel Research % Change Over Previous Year

26 Key Indicators for Montana Source: Smith Travel Research

27 Occupancy by Day of Week 2001 Source: Smith Travel Research

28 Montana Supply Analysis 1987 2001 Source: Smith Travel Research

29 Summary of Supply increase exceeding demand increase n Decrease in occupancy rates n Decrease in room rate increases n As long as total demand increases bed tax revenues continue to rise n Occupancy declines and ADR stagnation reduces hotel industry profitability and income tax collections n Increased room supply increases property tax collections

30 Closing thoughts n 36% of room nights are Out of State Leisure Guests n Out of State Leisure guests provide the incremental revenue that is needed to sustain profitability in many of Montana’s industries. n Effective Tourism Promotion is needed to drive needed incremental revenue to Montana businesses

31 Tourism might not drive the Montana economy, but it does make it possible to be profitable.


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