Hotel/motel tax revenue increasing

STEUBENVILLE, Oh. -- Local hotels and motels have seen record occupancy over the last 10 years, and local leaders say the tax revenue being generated is an indication that the gas drilling industry is taking hold in the valley.

            In Ohio and West Virginia, towns and counties collect hotel/motel tax revenue. The revenue increase of the past few years is likely an indicator that the gas industry is growing.

            “Primarily Marcellus shale [workers],” said Steubenville City manager Cathy Davison when asked what led to the recent surge in business.

            A sampling of county and local governments shows that hotel/motel tax revenue has gone up by several hundred thousand dollars.

            In Steubenville the hotel/motel tax revenue increased from $172,458 in 2000 to $177,569 in 2010. Wheeling’s revenue increased from $337,776 to $1,164,298 over the same period.

            Several other local areas saw increases as well from 2000 to 2010: Moundsville saw revenue increase from $2,765 to $5,477; New Martinsville saw an increase from $72,000 to $172,000; and Belmont County saw an increase from $229,026 to $277,990.         

            “We’re pretty much at full capacity right now,” said Fred Porter, manager at the Plaza Motel in Moundsville.

            Porter says that gas workers have provided for a steady stream of business because they often stay for weeks or months at a time.

            “We have seen all aspects of the drilling process,” Porter said. “We’ve had the people here negotiating the leases, we’ve had the drillers – the actual people working on the rigs – and now we have the pipeliners.

            Porter said the problem is no longer having enough business, but instead having too much.

            “We turn away quite a few people because we just don’t have anything for them,” Porter said.

            Moundsville isn’t the only area where hotel rooms are hard to come by. In fact, several towns are exploring the idea of building additional hotel and motel spaces.

            “It would be a fantastic economic boost for our economy and also for our tax base,” Moundsville City Council Member Phil Remke said of the possibility of a new hotel or motel opening in the city.

            Remke said it is his mission to bring a new hotel or motel to Moundsville, not only for the additional tax revenue but also because it would provide more options for people traveling to the city.

            City leaders in Steubenville say the town has already been approached by developers looking to build.

            “We do have developers that have come in and looked at property and have shown and interest [in building a hotel],” Davison said.

            State law in Ohio and West Virginia mandates what the tax revenue generated from hotels and motels must be used for. In both states, a large portion of the revenue is dedicated to promotion and tourism.