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Tourism returns to Houston as post-COVID boom continues

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Tom Gantert

(The Center Square) – Tourism has rebounded since the pandemic in the city of Houston as its hotel tax revenue has more than doubled in the past two years.

The city took in $104.9 million in hotel tax revenues in 2023, according to a recent report. That's more than double the $47.4 million it brought in 2021, when hotels struggled during the pandemic. The hotel revenues increased 74 percent in 2022 to $82.5 million and then jumped another 27 percent in 2023 to the $104.9 million.

The city stated the increases were due to the average daily rate of rooms increasing from $100.89 a night in fiscal year 2022 to $115.75 a night in FY 2023. The occupancy rates of the hotels also increased from 2022 to 2023 jumping from 56.6 percent to 62.1 percent. In 2020 during the start of the pandemic, hotel occupancy rates were at 39.8 percent in Houston. Daily hotel room rates also dropped to $86.48 on average in 2020.

There are multiple taxes tacked on to hotel bills in Texas. In Houston, there is a 6 percent state tax, a 7 percent Houston tax, a 2 percent Harris County tax and another 2 percent Harris County – Houston Sports Authority tax.

The city of Houston estimates that travel and tourism contribute $17 billion to the city's economy every year and account for more than 120,000 jobs.

Houston First, a local government corporation that runs the city’s convention and performing arts facilities, did not respond to an email seeking comment.