Revenue from new Buncombe hotel tax rolls in; $1.4 million collected in November

Jason Sandford

Jason Sandford is a reporter, writer, blogger and photographer interested in all things Asheville.

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Ashvegas: The City You Love. The News You Want.The numbers are in from the first month of collections following the first Buncombe County hotel occupancy tax increase in decades, and they’re looking good for local tourism officials: the total occupancy tax revenue for November 2015 was $1.44 million, compared to $833,795 for November 2014.

There’s a caveat to the number above. The total collections shown for last November include tax money remitted to Buncombe County from AirBnB, which started paying taxes to the county in June 2015. So the big jump isn’t just from the 2-cent increase in the hotel tax, which last year went from 4 percent to 6 percent.

The occupancy tax money goes to fund the Buncombe County Tourism Development Authority, which works to market Asheville and the county to visitors. (Here’s a look at their spring marketing plan.) The TDA also sets aside 25 percent of that money for what it calls the tourism development product fund. Through the fund, the TDA makes grants to support specific projects aimed at driving tourism.

Local tourism officials are banking on the increase revenue from the occupancy tax increase, a controversial move when it was approved last year. Some residents wanted a portion of the new occupancy tax dedicated to making infrastructure improvements around the city, noting that increased visitation is taking its toll. Local hoteliers pushed for the tax increase because they’re worried about decreasing occupancy rates and room rates as a wave of new hotel rooms open this year as part of a hotel building boom. (The TDA estimates that 1,700 new hotel rooms will become available over the next two to three years, a 25 percent increase over what’s currently available. Some 600 new rooms are expected to open this year.)

Meantime, hotel occupancy in November 2015 showed a 3 percent increase compared to the previous November, according to the TDA’s latest numbers. That’s good news for local tourism officials, who saw hotel occupancy dip in October 2015, a month that’s typically the biggest for visitors who come to the mountains to see the fall colors.

Other key numbers:

-The average daily room rate for November 2015 showed a 7.2 percent increase over the previous year, from $135.51 to $145.26.

-Total airport passengers going through the Asheville Regional Airport remained virtually flat at 62,038.

-Visits to, the Buncombe TDA/Asheville Convention and Visitors Bureau’s website, dropped 18.1 percent, from 285,947 to 234,142. Marla Tambellini, vice president of marketing and deputy director of the Asheville Convention and Visitors Bureau, attributed the decline to an overhaul of the exploreasheville website last year, which required some URL updatating that can take awhile for Google to pick up.

Jason Sandford

Jason Sandford is a reporter, writer, blogger and photographer interested in all things Asheville.

  • 1

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  1. Jane February 12, 2016

    So none of the money goes back into our city? It all goes toward Buncombe Co TDA? Instead of going back onto our infrastructure, it goes toward getting Asheville on another list to feed it’s collective ego. The latest; Asheville is one of US’ 8 most saintly cities

    1. Barry Summers February 13, 2016

      Until we can get the law changed in Raleigh, the best we can hope for is that the TDA will share some of that money on specific “tourism related” infrastructure projects that the City would otherwise have to pay for alone, or not do at all, like parks, greenways, etc.

      I think a very strong case can be made that some of that avalanche of new money should go towards the St. Lawrence Green project.

  2. Murphy February 12, 2016

    So a 70% increase in funds…

    1) Can we handle a 70% increase in visitors…

    2) How much of a raise will the folks at TDA be giving themselves…

    Imagine the amount they will be raking in when the 7 (or is it more) new properties open and an even larger increase occurs…

    Didn’t Mr. McHotel claim he was going to “help” the “powers that be” spread the wealth to infrastructure projects….

    1. Barry Summers February 13, 2016

      How much of a raise will the folks at TDA be giving themselves…

      It’s not just the raises you need to look out for – it’s the “bonuses” and “profit sharing”.

      “Because of high hotel sales and a large amount of tax revenue, employees would qualify for bureauwide profit sharing as well as individual performance bonuses.”

  3. Barry Summers February 12, 2016

    A 70% jump in tax money earmarked to attract tourists? Good lord, the time is right to build more hotels!

    1700 new rooms already in the pipeline? Good lord, we’d better spend all that money and then some in order to fill them!

    Have you heard? The Buncombe TDA is increasing tourism advertising 70%! Good lord, we’d better get our new hotel proposal in the works now!

    We’ve overbuilt the hotels, and now occupancy rates are dropping. Good lord, we’ve gotta raise and spend more money to attract tourists!

    Hey, have you heard? Buncombe TDA is getting ready to spend more money on advertising!…

    Rinse, repeat.

    1. jtroop February 12, 2016

      “If You Give A Mouse a Cookie”…

  4. jtroop February 12, 2016

    That’s a lot of money, right? Demonstrates why AVL is so eager to approve hotel development.


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