Another month for the record books! The first month of the fiscal year 2021/2022 (July) brought in a record-breaking $947,120 of transit and occupancy tax (TOT)! Only one month has surpassed this number, October 2018/2019 at $962,598. Of course, the Town was very conservative in their budget process, not knowing the lasting effects of COVID on travel, and budgeted $376,032. Nice solid start to the new fiscal year.
Shall we dig a little deeper? We should because TOT comprises over 60% of our unrestricted General Fund revenue. Ignoring last year (which was actually $344,302) and looking at the previous regular years, we get an increase of over 35% in TOT for July. How exciting! Well, here is where it gets interesting, the occupancy for all hotel rooms in July 2019 was 73%, with an ADR (average daily rate) of $579. For July 2021, occupancy was 67%, and the ADR was $836. Wow, fewer guests paying more, much more, 30% more.
How long can that be sustained? I am concerned for our General Fund’s future with these rates, and at these rates, the guests are being asked to expect much less from their stay. No turndown. Park your own car. No room service. No daily housekeeping. Fewer guests mean fewer people walking our streets, going to restaurants and tasting rooms. Yep, they have all increased their prices as well. All this with less staff. Less service. Modified service. Inconsistent hours.
Make hay while the sun shines at the expense of our future? Europe will open. Travel will return. When you pay this much, you tend to remember the experience and share it, especially when it is less than expected.
I hope the Town businesses do not miss an opportunity to keep us all moving forward by only looking at today.
Read all the details and history for Yountville TOT.
Read the July 2021/2022 TOT report.