The North Olympic Peninsula generated more than $3 million in lodging tax revenue in 2017 thanks to a spike in “heads in beds” at lodging establishments, a local tourism official said.
Unincorporated Clallam County and the cities of Port Angeles, Sequim and Forks produced a combined $2.06 million in hotel/motel tax receipts last year, a 13.6 percent increase from 2016, Olympic Peninsula Visitor Bureau Executive Director Marsha Massey said Thursday.
Port Townsend and unincorporated Jefferson County generated $1 million in lodging tax revenue last year, a 9 percent bump from 2016.
“Everybody has had very strong years as far as lodging tax,” Massey said in a joint meeting of the Clallam County, Port Angeles and Sequim lodging tax advisory committees.
A big reason for the increased lodging and non-lodging tax revenue was visitation to Olympic National Park, the region’s No. 1 tourist draw, Massey said.
Olympic National Park had a reported record 3.3 million visits in 2016, which coincided with the National Park Service’s centennial celebration, and drew nearly 3.2 million visits through October 2017.
“This is the fifth consecutive year that we’ve been over 3 million visitors,” Massey said of the park, which uses traffic counters and seasonal formulas to gauge visitation.
“In 2016, the Olympic National Park ranked as the seventh most-visited national park in the United States. It’s a big draw for us.”
The joint meeting of the three lodging tax committees of Clallam County was convened by Clallam County Commissioner Mark Ozias, chairman of the Clallam County Lodging Tax Advisory Committee and Board of County Commissioners.
Counties and cities have independent lodging tax committees to review and make recommendations on lodging tax spending.
Lodging tax is a 2 percent distribution from the state portion of retail sales tax plus a 2 percent special hotel/motel tax on overnight stays at hotels, motels, bed and breakfasts, campgrounds, RV parks or other lodging establishment.
The 4 percent “head in beds” tax goes back to the city or county where it was generated.
Lodging tax revenue is spent on marketing efforts, particularly for the shoulder seasons of spring and fall, events or capital projects that promote visitation.
The city of Port Angeles, for example, recently allocated $50,000 in lodging tax funds for upgrades to the Lincoln Park BMX Track to draw statewide competition.
The idea of the joint meeting was to share information and to look for ways to leverage resources, Ozias said.
No formal action was taken.
“It was a good dialogue and a good conversation,” Massey said in a Friday telephone interview.
“I appreciate Commissioner Ozias pulling everybody together.”
Total visitor spending for the North Olympic Peninsula in 2016 — the most recent year available — was $382.3 million, according to statistics compiled by Massey.
Clallam County visitors spent $243.6 million on food, gas, accommodations, entertainment and other items in 2016, a 4.9 percent increase from 2015.
Jefferson County’s overnight and day-trippers spent $138.7 million in 2016, a 4.1 percent increase from the previous year.
North Olympic Peninsula visitor spending generated $27.5 million in state and local taxes in 2016. That’s up about 9 percent from 2015, Massey said.
“Those tax receipts are what help fund infrastructure, police, education, all the other things that a community does,” Massey said.
“Our visitors are contributing $17.8 million to our tax base [in Clallam County]. So that’s a nice number to see.”
The Olympic Peninsula Visitor Bureau markets the region as a destination and provides administrative support to the Olympic Peninsula Tourism Commission.
The commission is a funding partnership of Clallam, Jefferson and Mason counties, Port Angeles, Port Townsend, Sequim, Forks, Clallam Bay/Sekiu and the Lake Quinault Innkeepers Association.
In 2018, the commission will receive about $152,000 from its members, Massey said. The money is used for marketing efforts focused on the shoulder seasons.
“I think it’s a very effective organization,” said Barbara Hanna, Sequim’s communications and marketing director and Sequim Lodging Tax Advisory Committee member.
“I think it’s been held up as a model for other regions. I don’t think there are a lot of places that are partnering like we are.”
Massey said the Amazon-fueled Seattle boom presents an opportunity for Olympic Peninsula marketing.
The city, which is served by the ninth busiest airport in the country, is adding more than 20,000 new residents per year, she said.
“We don’t have to go far to find new prospects,” Massey said.
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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 56450, or at rollikainen@peninsuladailynews.com.
