NEWARK – Hotels in the area have recovered from the 2020 financial nightmare caused by COVID in one almost normal financial performance this year.
Licking County’s 3% lodging tax, which brings in about $ 390,000 annually to bring in Explore Licking County, raised just $ 261,000 in 2020. However, by month 10 of 2021, the county’s 21 hotels have paid $ 373,000 to the local visitor bureau.
Dan Moder, director of Explore Licking County, said US Travel & Tourism and others had predicted the hotel industry might not normalize before 2025. Instead, this year’s Licking County’s hotel performance will appear to turn the impact of COVID into a year-long phenomenon that has taken off business 33%.
“We’re still in a pandemic, that’s encouraging,” said Moder of the 2021 collections. “It has grown faster than we expected. The difference between the two (years) is quite big. Growth takes place.
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“Licking County hotels have really been rock stars throughout this whole thing, and consumer confidence is high. Revenue is pretty robust right now and we’re a little shocked by that. We sure see more traffic. We hope it (COVID downturn) goes beyond us. “
Explore Licking County, which uses bed tax for its operating budget, salaries, and overheads, and temporarily laid off its employees in 2020 due to the dramatic drop in sales. Explore Licking County has used the proceeds to market the county to a public who is concerned about the pandemic and concerned about getting back to normal.
Newark, which receives an additional 3% from the city’s five hotels, makes about $ 200,000 a year on average. In 2020, the collections were only $ 111,614 but rose again to $ 218,883 this year by October 31st.
The city recently approved withdrawals of $ 133,000 from its bed tax money to nine facilities across the city. The largest recipient was Newark Development Partners for The Arcade restoration project. The Canal Market District, Reese Ice Arena, Midland Theater, The Works, 31 West, Don Edwards Park, Newark High School, and Newark Catholic High School also received funding.
Newark Service director Dave Rhodes said there was no law dictating how the city spends money.
“We have a policy on bed tax money,” said Rhodes. “Can you manage overnight stays and expenses in the community, for example when eating in restaurants? There are no restrictions other than the parameters we set. We’re trying to spend as much as possible, but we’ve suffered a significant slump with COVID. “
Rhodes said Newark Catholic had a wrestling tournament that 25 schools competed in. White Field, Newark High School’s football stadium, recently had 8,000 outside fans for a high school playoff game, he said.
Moder said sports like baseball, hockey, and soccer traditionally attract people from outside the area to spend their money here.
“Youth hockey is really strong,” said Moder. “Youth sports are still such a thing.”
The Newark Area Soccer Association, which traditionally receives bed tax money because its tournaments attract large numbers of fans, received nothing this year. NASA received $ 20,000 or $ 30,000 in previous years and was being considered for $ 10,000 this year.
Councilor Doug Marmie, a member of the city’s hotel tax committee, suggested that the city withhold a contribution this year to NASA, which had not requested funding that year.
“NASA didn’t hold tournaments,” said Marmie. “So I don’t know how much we want to go on. We take over a large part of your expenses and you no longer generate any real bed taxes. “
Keith Loughlin, president of the Newark Area Soccer Association, said NASA has hosted tournaments this year and plans to apply for money in December if it has made earlier applications.
NASA hosted the Buckeye Cup in May and the Hopewell Cup this October, Loughlin said. The only scheduled tournament that it canceled was in the spring of 2020 when everything was closed and the Buckeye Cup was not allowed to be played.
Loughlin said he was surprised city officials thought NASA canceled all tournaments as events in May and October were clearly visible due to traffic jams on North 21st Street.
“This fund helped us create the Buckeye Cup and the Hopewell Cup, and we hope to start another,” said Loughlin. “Usually we make an inquiry in December and not last year. We bring a lot of people with us. That (cancellation in 2020) was obviously not our fault.”
kmallett@nemarkadvocate.com
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Newark Bed Tax Income
The following are the hotel tax revenues the city of Newark has received annually over the past few years: The Cherry Valley Hotel’s temporary closure and renovation reduced the grand total for 2019, and COVID significantly reduced revenue for 2020.
2016: $ 229,997
2017: $ 199,727
2018: $ 213,047
2019: $ 169,034
2020: $ 111,614
2021: $ 218,883 (through October 31)
Tax payouts for beds in Newark
The following are Newark City Hotel Tax Payments for 2021 as approved by the City Hotel Tax Committee on November 15. In August, the Licking County Foundation received $ 5,000 to restore the Louise Sullivan Building in downtown Newark.
Arcade and Newark Development Partners: $ 50,000
Canal Market District: $ 20,000
Lou & Gib Ice Arena: $ 20,000
The Midland Theater: $ 10,000
The works: $ 10,000
31 vests: $ 10,000
Don Edwards Park: $ 7,000
Newark High School Athletic Booster: $ 3,000
Newark Catholic Sports Association: $ 3,000
Total Payouts: $ 133,000
