HVS Offers Tax Revenue Forecasting & Advisory Services for Public Sector Clients

Hotel occupancy taxes are an important source of tax revenue for many state and local governments. Planning, budgeting, and capital investment decisions depend on accurate forecasts of revenues from this and other tax sources. But forecasting the tax revenues from hotel occupancy taxes, or related tourism taxes, can become very difficult when markets are changing rapidly. Especially during periods of economic change, it is important to consider a comprehensive set of market factors and trends that have important implications for tax revenues. In particular, the following types of changes can complicate the task of forecasting hotel occupancy tax revenues:

§         Economic growth is leading to demand growth

§         Economic recession is leading to declining demand

§         Physical improvements are improving the competitiveness of existing hotels

§         Physical depreciation is reducing the competitiveness of existing hotels

§         New hotels are planned or under construction

§         Existing hotels are being removed from the lodging inventory

§         Nearby communities are becoming more or less competitive for hotel/tourism activity

§         Tax rates or collection procedures are changing

To forecast local hotel occupancy tax revenues, each of these factors and others must be considered and analyzed. Therefore, a thorough analysis of local hotel occupancy tax revenues is likely to involve the evaluation of physical, economic, environmental, and governmental factors that could affect future lodging activity and tax revenues.

HVS has developed a thorough methodology for evaluating these key factors that are likely to have critical implications for a community’s tourism-related tax revenues.

In recent years, HVS has been retained to advise government clients and forecast tax revenues for some of the most high-profile and complex hotel and tourism taxing districts in the country. Examples of recent engagements include tax forecasts for Dallas, Milwaukee, and New York City.

Our clients for such services include municipal governments, state agencies, development authorities, investment banks, lawyers, and various public agencies. HVS has more than 300 specialized hotel industry consultants, many of whom have extensive experience and training in revenue modeling and tax policy. Please contact Hans Detlefsen at (312) 587-9900 or hdetlefsen@hvs.com for more information. Or contact a Managing Director at any of our 27 offices around the world to discuss your unique situation or to learn more about our past experiences.

HVS is a global consulting and services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. We are client driven and dedicated to providing the best advice and services in the industry. Please visit us at www.hvs.com to learn more about our company.

Contact:
Hans Detlefsen, MPP
HVS Convention, Sports & Entertainment
205 West Randolph, Suite 1650
Chicago, IL, 60606
Tel: +1 312 587-9900 ext. 15
Fax: +1 312 587-9908
Email: hdetlefsen@hvs.com
Profile: www.hvs.com/Personnel/Hans.Detlefsen.aspx