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Chamber report: lodging‑tax receipts dip, housing study finds tight market as city plots workforce strategy

Batesville City Council · December 17, 2024
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Summary

The Chamber reported lodging‑tax receipts down ~18% and previewed three 2025 economic priorities: a workforce strategy, a housing study that found low vacancy rates and a shortage of available units, and site‑selection efforts to recruit hotels and retail.

Crystal Johnson, CEO of the Chamber and A&P commission, told the council that recent advertising metrics and a new visitor app are part of efforts to increase visitation. She said lodging‑tax collections are down about 18% from 2023, citing one property’s conversion of long‑term units (exempt from the 3% lodging tax) and unpaid lodging‑tax collections from a Super 8 with new ownership.

Johnson outlined three economic‑development priorities for 2025: a workforce strategy focused on the cradle‑to‑24 pipeline, a housing study, and site‑selection to recruit hotels and retail. She said the housing study indicates a tight housing market: rental vacancy is about 7% (a healthy range is 4–6%), and home vacancy is around 9% (a healthy range is 2–3%). The study also found many workers commute from outside the county; survey responses suggested a sizable share would buy or rent locally if units were available.

Johnson said the A&P commission is pursuing recruitment and retail strategies and has engaged a consultant to pursue hotel growth and supporting tourism industries; she said more detailed tracking of visitation will follow once holiday‑season data are complete.

Council discussion included clarifying that the lodging tax applies to hotels and not restaurants, and whether short‑term rental units could be brought under the lodging‑tax regime—a policy change Johnson said would need further study and legal review.