Why eastern Idaho’s lodging tax revenue increased this year and how it will be used
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REXBURG – Eastern Idaho draws tourists from across the globe every year and in 2022, businesses are benefitting in a big way.
The Idaho Travel Council awards an annual grant to regions across the state, which is funded through a 2% tax on sales at hotels, motels, vacation rentals and private campground accommodations. During the last fiscal year, the eastern Idaho region — which includes Bonneville, Fremont, Teton, Madison, Jefferson and Clark counties — earned $3,738,747.
The grant awards 45% of that tax revenue back to each region at the end of each fiscal year.
Yellowstone Teton Territory is eastern Idaho’s regional tourism board that applies for and manages this grant. During its monthly meeting in Rexburg Tuesday, board president Mike Wilson revealed the grant amount for eastern Idaho during the last fiscal year was $1,785,325.99.
The tax revenue and grant amount represent a sizable increase from previous years. Wilson pointed out that the grant amount in 2018 was $425,000. It increased to more than $700,000 in 2021. He attributes the increase this year to an uptick in the number of lodging options for tourists.
“Our inventory of available rental properties has not really increased that much, but Airbnbs came online in that time,” Wilson tells EastIdahoNews.com. “In Fremont County, (at least) 60% of the cabins that were just short-term, summer stays have now converted to full-time short-term Airbnb type rentals.”
During Tuesday’s meeting, board member Kristi Baughman provided a breakdown of lodging revenue by county.
She compared 2022 to 2019 because it was the last “normal” year before the COVID-19 pandemic, inflation, rising gas prices and flooding at Yellowstone National Park.
When comparing those two years, Fremont County saw a 130% increase in lodging revenue — the largest among all the counties in eastern Idaho. This likely has to do with record visitation at Yellowstone in 2021, which would have brought an increased number of lodgers to Island Park and surrounding communities.
It’s worth noting that the last fiscal year ended on June 30, several weeks after Yellowstone Park re-opened following a 9-day closure due to flooding. The decreased number of visitors to Island Park this summer will be reflected in 2023 at the end of this fiscal year.
RELATED | West Yellowstone, Island Park feeling ripple effects weeks after record flooding
Bonneville County had the lowest percentage increase in those two years. Bonneville County Assessor Dustin Barron offered his perspective on the data.
“I’m unfamiliar with this chart to know which properties it’s classifying as ‘lodging,’ but my assumption would be cabins, lodges, recreational use (and similar) types of properties. The majority of the growth in Bonneville County for these types of properties would be found around the Palisades Reservoir, Swan Valley area. While there is growth in that category, it makes sense that it hasn’t increased as significantly as Fremont County,” Barron says.
Another surprising percentage increase is Clark County at 45%. There are only two motels in Clark County, according to county officials. EastIdahoNews.com was unsuccessful in reaching one of the owners for comment, but Baughman speculated during the meeting on what might be happening.
“I think short-term rentals changed,” Baughman explained. “I also think it had a lot to do with … the Spencer Opal Mine digging when COVID went away.”
Regardless of the breakdown, Wilson says the increase in revenue will have a positive impact on all the counties in eastern Idaho. The funds will be used to promote tourism in eastern Idaho over the next year.
The board discussed its marketing plan for the upcoming year during Tuesday’s meeting, which utilizes online, broadcast, print and other media platforms.
YTT partners with multiple organizations through a cash match program, meaning there will likely be much more funding available than the grant amount for advertising or events. Some of those partners include the Idaho Falls Regional Airport, the soon-to-be completed Mountain America Center, the Idaho Falls Arts Council and the Museum of Idaho.
Though YTT is required to promote all businesses in the region, Wilson says those who are members of the tourism board have a greater influence on how that money is used. The cost for an annual membership is $75. Those interested in joining can speak with Jeanine Nelson at the Rexburg Chamber of Commerce. The number is (208) 356-5700.