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Lakewood advisers warn lodging-tax funds must adapt as visitor patterns shift
Summary
City council study session heard tourism advisers say visitor volume remains below pre-pandemic levels, short-term rentals and lost low-end rooms have changed the market, and local lodging-tax policy could be tightened and targeted to support downtown and capital projects.
Dean Burke, a member of Lakewood’s Lodging Tax Advisory Committee and president and CEO of VISIT Tacoma Pierce County, told the Lakewood City Council at its Aug. 11 study session that Pierce County’s tourism economy has recovered unevenly since 2019 and that the county remains “5% to 9% behind 2019” in visitor volume in many places. Burke said lodging receipts by dollar amount have exceeded 2019 levels in some markets because of higher room rates, but overall visitation counts remain down and this year appear “flat to just maybe slightly down.” He told council members that international visitation has lagged and has hit Seattle hardest, which affects neighboring Pierce County. The council also heard from Linda Smith of the Lakewood Chamber of Commerce, another LTAC member, who described local changes in inventory: “Between Fife, Hosmer, and Lakewood … we’ve seen about 800 rooms removed from inventory in the low-end sector,” she said, citing conversions of smaller properties to non-tourism uses. Burke…
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