Former Mayor: Is San Angelo Using Hotel Occupancy Tax Wisely?

SAN ANGELO – How to best administer, distribute and leverage the Hotel Occupancy Tax (HOT) for the benefit of our city and hospitality industry has been an ongoing question of mine. As a stand-alone city over 200 miles from the nearest metropolitan area, we have some unique challenges and opportunities when it comes to attracting more heads in hotel beds.  How do targeted marketing and purposeful programing come together to best attract visitors to our town?

A considerable portion of the HOT, approximately $2.7 million, is retained each year by the city to foster more tourism in our local market.  The other part goes to the state. The Texas Hotel and Lodging Association provides a concise overview of the statutory guidelines for the administration of the HOT tax, levied on every visitor to our city.  The first criterion is that every expenditure of this tax must directly enhance and promote tourism and the convention and hotel industry.  The second criterion is that every expenditure of the tax must fit into one of nine statutory categories.

These nine categories include: funding the establishment, improvement, or maintenance of a convention center or visitor information center; paying the administrative costs for facilitating convention registration; paying for advertising, solicitations, and promotions that attract tourists and convention delegates to the city or its vicinity; expenditures that promote the arts; funding historical restoration or preservation programs; funding certain expenses, including promotional expenses, directly related to a sporting event within counties with a population of under 1 million; funding the enhancement or upgrading of existing sports facilities or sports fields for certain municipalities;  funding transportation systems for tourists; and signage directing tourists to sights and attractions that are visited frequently by hotel guests in the municipality.

According to a recent presentation, there are roughly 2,900 taxable rooms in San Angelo with 34 properties accounting for most of these accommodations.  The reported occupancy throughout fiscal year 2022 was 55.87 percent, with an average daily rate of $83.99. We know that visitors stay in San Angelo, on average, for 2.1 days. While business travel is experiencing a decline, capturing more leisure travel becomes increasingly important. Data indicates that our target market consists of Texas travelers and visitors from shoulder states.

We should continue to embrace our designation as a top 10 True Western Town in the nation, the Visual Arts Capital of Texas, home to one of the nation’s largest rodeos, and a destination for hunting and aquatic activities around our rivers and lakes. Youth and collegiate programs also attract many visitors.

Over the past 20 years, our designation as a Texas Main Street community has facilitated an impressive revitalization of our historic central business district, making downtown San Angelo a growing attraction.  The annual Brews, Ewes and BBQ event is on the verge of securing another state qualifying cook-off designation that will enhance its stature and draw more visitors to San Angelo.  Kudos to that.  Repeat events tend to grow in popularity year after year. A hat tip to other notable annual events such as En Plein Air that brings artists from across the nation to paint our city and countryside.

San Angelo could also pursue other designations such as the All-American City Award, that recognize communities for inclusive civic engagement in addressing critical issues and creating stronger connections among residents.  Such efforts enhance the attractiveness of our city as a visitor destination.

It seems to me that the city council could always encourage more synergy between the entities that are entrusted with administering these funds, including the Chamber of Commerce -Destination Marketing Organization, Civic Events, Downtown San Angelo Inc., the San Angelo Cultural Affairs Council, the San Angelo Museum of Fine Arts, Fort Concho, Art in Uncommon Places and other key recipients and players.

Coordinated programming is key to leveraging our draw as a destination.  Again, repeat events tend to grow in popularity year after year.  While we can market our city extensively, without a more purposeful approach, leisure travelers won’t consistently know when to plan a visit to San Angelo.

Last month, I suggested designating a weekend each month in which there would be a community-wide call to come down to the Concho, run, walk, bicycle, play games and gather between Santa Fe Park and Irving Bridge.  Most of our key attractions are within blocks of the river. By creating a monthly community gathering, we could establish a framework for both visitors and residents to come together and enjoy the natural beauty, living history, and family-friendly cultural offerings that could showcase local talent and touring artists.

Joseph W Lown

Former Mayor of San Angelo