This indicator is part of Vital, sustainable economy.

Indicator description:                                                           

Lodgers’ Tax revenue is an indicator of the dollars spent on lodging in the City of Albuquerque. The tax rate is 5% of the amount spent for lodging. The Lodgers’ Tax revenue is affected by the number of rooms, occupancy rate, and the price of a room night. Lodgers’ Tax revenue does not include a 1% Hospitality Fee implemented in fiscal year 2004.

Why is this indicator relevant?

Tourism and conventions are an important component of Albuquerque’s economy. The Lodgers’ Tax gives an indication of business travel to the City as well as tourism. These dollars are important since they represent dollars infused into the local economy that originate from outside the community. Visitors consume few local government services or natural resources but spend money on other goods and services that add to the City’s tax base and overall economy.

Data Source:
City of Albuquerque Finance and Administrative Services Department, Treasury Division, 1998-2008.

What can we tell from the data?

• Revenue from the Lodger’s Tax declined in 2001 and was flat into 2003. This is a result of decreased travel due to the September 11, 2001 tragedy and the resulting overall national economic downturn.
• Growth has been significant between 2004 and 2008 as the Southwest has drawn tourists and business travel has expanded.
• It is likely that growth of Lodgers’ Tax revenue will slow as the impact of the economic recession of 2008-2009 is felt in Albuquerque.

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