Following losses in hotel occupancy tax revenue throughout the COVID-19 pandemic, a return to business as usual has begun to take shape, according to local hospitality industry officials.
The Woodlands Township’s 14 hotel properties were projected to generate $6.2 million in hotel occupancy tax revenue in 2021, a 43.7% increase from 2020, according to Nick Wolda, president of convention and visitors bureau Visit The Woodlands. Hotel occupancy tax is used to help promote tourism.
“We’re at a very important point in time when competition is developing throughout the region and finding new ways ... to keep visitor spending strong in The Woodlands,” Wolda said.
Board changes
The Visit The Woodlands board began the year by reorganizing from nine to seven members. The changes left J.J. Hollie, president of The Woodlands Area Chamber of Commerce, and Ted Harris, general manager of The Woodlands Mall, off the board.
Hollie said he had served on the board since he started with the chamber in 2015.
“The chamber has historically been on the board, I believe since its inception, and I think it is important that the chamber be on [the] Visit The Woodlands board because it is an economic driver for our business community, and the insights that we add are valuable,” he said.
Wolda said the members of board of directors on the VTW board made the changes to focus more on hotel occupancy tax collection.
“This year’s three members appointed by The Woodlands Township board of directors opted to go with seven [VTW] directors this year and with entities/individuals who have the great[est] interest in the collection of hotel tax,” Wolda said.
The number of board members has varied from seven to 10 over the years, Wolda said. The positions are not paid.
Prospects for 2022
Since the pandemic began, conventions and events have seen some changes in how they are conducted. VTW Executive Director Elizabeth Eddins said many events now offer a hybrid experience with both in-person and virtual options.
“For the events that are smaller due to the hybrid nature, it means we can now accommodate events that used to be too large for our venues to counteract any groups that have shrunk for 2022,” Eddins said.
The emergence of the omicron variant does not appear poised to change these strategies, Sales Director Josie Lewis said.
“People are ready to meet in person again, so event organizers have honed in on how to do so responsibly,” Lewis said.
Visit The Woodlands is also building its international marketing. Wolda said Mexico is a strong market for leisure and medical travelers to The Woodlands, and previous marketing efforts have been successful.
At the same time, local hotels have seen some changes: The Woodlands Waterway Marriott Hotel & Convention Center completed a renovation in 2020; The Woodlands Resort is converting to the first Curio Resort by Hilton in Texas with planned renovations; and the Hyatt Centric in Market Street is also undergoing renovations, Wolda said.
Although neighboring Shenandoah also has a robust hotel base with 13 hotels, including three that opened in 2021, Wolda said there is “more than enough business to go around.” Shenandoah also saw its hotel occupancy tax revenue decline by 42% to $889,000 in fiscal year 2019-20, but climbed to about $973,000 in FY 2020-21, according to city documents.
“Hotel collections for The Woodlands are on a major growth trend. ... Visit The Woodlands remains positive about the outlook,” Wolda said.
VTW Chair Bruce Rieser said The Woodlands has ample hotel capacity to carry it through continued recovery.
“We have the capacity of 820,000-plus hotel rooms in The Woodlands on an annual basis,” Rieser said. “This is a major generator of commerce through conventions, corporate meetings, leisure travel, concerts, sporting events and more. After a successful 2019 and working our way through a pandemic, The Woodlands is rapidly ascending with increased visitor and meeting business as a premier destination for corporate and convention meetings and leisure travel. We look forward to the input, experience and ideas our directors and staff bring to the opportunities we have in front of us.”
