Santa Barbara is experiencing a busy summer travel season, with tourists filling hotels, restaurants, and beaches across the city. The city’s hotel occupancy tax, also known as the Transient Occupancy Tax (TOT), is paid by people staying in hotels or short-term rentals for fewer than 30 days.
Hotel Tax Revenue
According to City Finance Director Keith DeMartini, the city has already collected more than $34 million in occupancy tax revenue this year, putting collections ahead of budget. The average daily hotel rate is just over $312, and occupancy in May was around 73 percent, with both numbers expected to increase in June and July.
The revenue from the hotel tax helps support general city services, with a portion dedicated to creek restoration and water quality projects. Some international visitors are traveling through the region while following World Cup matches, which may have contributed to the increase in tax revenues.
However, not all businesses are seeing the same boost from summer tourism. Some are reporting that customers are being more selective with discretionary spending due to the current state of the economy.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
