Sedona Summer Numbers
AS SEEN IN THE RED ROCK NEWS
October 2, 2020
In last week’s column, we reviewed the Year End Report we filed with the City of Sedona. The Chamber returned $141,605 of unspent funds due to the pandemic.
We reported tax collections, hotel occupancy and daily rates for FY20, which ended June 30. To review, sales taxes were just six percent below City forecasts, despite having crashed to 37, 58 and 28 percent below forecasts in March, April and May.
Bed taxes for the year were 13 percent below budget forecasts after coming in 57, 91 and 52 percent lower in March, April and May.
For three weeks in April, hotel occupancy was down an incredible 89 percent from the same period in 2019 before beginning to recover. By the end of June, occupancy was down just nine percent from the previous year.
Average daily room rates for Sedona hotels recovered and by mid-June, exceeded 2019 rates by six percent.
This week, we look at how the lodging industry fared over summer. City tax collection data is not yet available.
Tracking lodging data is important since visitors inject cash into the economy, keep Sedonans employed and pay most of our local sales taxes (77%).
After COVID cases rose in June, July occupancy dipped briefly, then recovered. After flattening somewhat in August, occupancy rose again and reached 70 percent by September 19, the last week for which we have data. That is the highest occupancy level since mid-March, just before we felt the pandemic’s effects.
The average daily rate for a room remained above the 2019 average throughout the summer. By the end of August, it was 16 percent higher than 2019, before dropping back slightly in mid-September.
Both our occupancy and average daily room rates were significantly higher than the statewide averages all summer long.
To sum up, occupancy improved, though still somewhat below norms, which is only to be expected. Average daily rates exceeded 2019 throughout the summer, notwithstanding the drop in the week ending September 19.
A recovering occupancy rate and a higher average daily rate may indicate Sedona, like other semi-rural destinations with an outdoor focus, will be a premium destination for higher-income travelers as a cautious recovery continues.
So where do we go from here? Research shows more people are considering travel in the fall and early winter, seeking wide open spaces and encounters with nature, which aligns with our sustainable tourism focus.
In June, the Chamber and Council agreed to pause advertising through summer and fall, foregoing a contingency expenditure of more than $150,000. We will soon resume the winter campaign launch and in January, we will discuss the second tranche of budgeted funds. Our “Find Your Room” ads would then appear in Southern California, from where people can drive to Sedona in about 8 hours and stay multiple nights.
With public awareness of COVID-19 protocols now well understood nationally, and with Sedona | Safe.Clean.Ready delivering a strong message to visitors about proper protocols, The City and Chamber are taking careful, responsible steps on the road to economic revival.
The Arizona Office of Tourism has set a 12-18 month timeline for tourism’s recovery. In our case that may be about right, or, as Sedona’s reputation solidifies as a safe, responsible town that honors our environment in beautiful, spacious surroundings, we may arrive a bit sooner.
–Jennifer Wesselhoff, President/CEO