ORLANDO-While individual hoteliers worry about fractionally falling occupancies in March to the 85% level, higher room rates this year are padding Orange County's 5% room tax collections that could generate a record revenue windfall this year, according to GlobeSt.com research. The hotel industry generally accepts a 65% occupancy as a break-even point in a hotel's operations.
Some area hoteliers' concerns on occupancies come as the county's February collections of $11.55 million are $38,400 below the February 2005 mark of $11.59 million. But county comptroller Martha O. Haynie is not worried.
"Cumulative collections through February are 5% above both budget projections and actual collections received during the same period last year," Haynie notes. "While, of course, we prefer a month-to-month increase, resort tax revenue remain strong overall."
Cumulative collections through the first five months of the county's fiscal year that began Oct. 1, 2005, total $51.69 million or an average $10.33 million per month. If that pace continues for the next seven months, the county's collections will total $124 million, or $4 million more than the record 2005 level of $120 million, according to GlobeSt.com research.
January collections totaled $10.36 million, 4.2% over January 2005's $9.94 million and 2.7% over Haynie's own budget projection. February 2006 collections were 2.5% over budget but 0.3% down from February 2005.
The hoteliers' concerns also come as the historical five-month hurricane season approaches June 1. Hoteliers traditionally fear repeat visitors to metro Orlando will travel elsewhere, avoiding weather problems here. But that didn't occur in 2005 when Orlando was spared direct hurricane hits and travelers resumed their treks to their favorite attractions, according to the Orlando/Orange County Convention & Visitors Bureau.
For the last week of March, Smith Travel Research LLC of Hendersonville, TN shows Orlando average occupancy at 85.1%, better than Hawaii at 84.4%, Los Angeles at 79.2% and the national average rate of 68.2%.
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