Another record year for state bed tax collections
After 2012’s record-breaking year for bed tax revenues in Montana, the state saw more than a $1 million increase for the first three quarters of 2013.
Flathead County was a big part of that surge, with revenue collection up by 17 percent in the first quarter (Jan. 1-March 31), 15 percent in the second quarter (April 1-June 30) and 9 percent in the third (July 1-Sept. 30).
“Even with the devastating impact October’s government shutdown had on the lodging industry’s fourth quarter, we still expect to see an estimated 1 to 2 percent increase in annual bed tax revenues for 2013 over the record-breaking year of 2012,” Mike Garcia, Voices of Montana Tourism, said in a press release.
The local Best Western Plus Flathead Lake Inn and Suites on U.S. 93 north of Somers (formerly the White Oak) contributed more than its share to the local bed-tax revenue numbers. With a 43 percent increase in revenue in the last year, the new owners have turned around the fortunes of a long-struggling hotel.
“We’re still on the uphill battle as far as taking over for the previous ownership,” Scott Rieke, general manager, said.
Occupancy at the Flathead Lake Inn was around 25 percent just before Christmas, he said, but as the holidays kicked in he expected increased skier traffic. In the summer of 2013, he said, the site was generally 100 percent booked.
The Flathead Lake Inn and Suites was purchased in 2012 by Eric Bahme, working through two nonprofit Christian ministries — Kingdom Point International and Spiritfire Global Ministries, under the direction of Val and Linda Munson. Through a commitment to customer service and an optimistic outlook perpetuated by staff and management, the hotel has shot from a consistent spot near the bottom of the Kalispell hotel Trip Advisor list of 22 hotels to its current No. 1 rating.
Another newcomer to the local lodging scene, the Homewood Suites by Hilton, started off a bit slower than predicted, as the Sept. 13 opening for the facility was a bit behind schedule.
But the establishment, located near the Cinemark Signature Stadium 14 theaters in Hutton Ranch Plaza, is now seeing the same good fortunes as most Flathead Valley lodging, general manager Angela Bowman said.
“We did have the delays, but the wait was well worth it,” she said. “Our guests are saying it’s a beautiful hotel, and folks are realizing we are here now and starting to stay with us.
“That’s why we’re having a great December,” she said. “Along with the skiing, we can be a destination all year long.”
The location in the heart of the north Kalispell shopping area has been great for luring Canadian visitors, Bowman said. She expects increased visitation in the Flathead Valley outside the traditional summer months, due partly to the work of the Kalispell Chamber and Kalispell Convention and Visitor Bureau in marketing the shoulder seasons to tourists.
Even though it is located at the base of Whitefish Mountain Resort, Kandahar Lodge still sees its highest occupancy in the summer, manager Jim Lockwood said.
“You can just imagine, with Glacier Park attracting millions,” he said. “I don’t know the exact amount of skiers, but by far summer is the peak season.”
He said that Kandahar business was up about 5 percent overall in 2012, with around 15 percent of that coming in the summer. It was undoubtedly one of the best years on record for the lodge, he said, though he doesn’t have exact figures.
Lockwood still believes that the challenge will always be to increase the winter visitors. One trend that isn’t helping the lodging industry, he said, is that fewer people are joining ski clubs. Lockwood said in past years, skiers would be part of clubs that would make destination decisions and fill an establishment such as the Kandahar very quickly.
“We would get clubs that would almost sell out the hotel, and now we’ll get about half the hotel,” he said. “We’re noticing a trend in more individual traffic coming through the area.”