Fairbanks reports record 21% increase in bed tax revenues for 2024

The Fairbanks North Star Borough Finance Committee meeting on March 20, 2025, highlighted a significant surge in bed tax revenues, marking a 21% increase over the previous year. This impressive growth, totaling approximately $9.7 million, reflects a robust recovery in the travel industry, despite ongoing uncertainties such as potential economic downturns.

Committee members discussed the importance of maintaining designated reserves of $1.5 million to prepare for unforeseen circumstances that could impact funding sources. The budget for 2025 emphasizes direct marketing efforts, allocating 51% of the budget to marketing initiatives, a notable increase from previous years.

The meeting also showcased strong performance metrics from the Fairbanks International Airport, which reported a 5% increase in passenger numbers compared to 2023. March was particularly noteworthy, surpassing May in passenger traffic, with over 97,000 travelers recorded. The Lasko Railroad experienced a slight decrease in summer passengers but saw growth during the winter months, further indicating a thriving winter tourism season.

Additionally, the borough's lodging sector remained stable, with an occupancy rate of 69% for 2024. The average daily rate for accommodations rose to $202, contributing to the record bed tax revenues. The short-term rental market also flourished, with a 22% increase in listings, reflecting a growing trend in vacation rentals.

Overall, the discussions underscored a positive outlook for Fairbanks' tourism and hospitality sectors, with strategic budgeting and marketing efforts aimed at sustaining this momentum in the coming years.