Page 461 - FY 2021-22 Proposed Budget

The 2016-17 fiscal year was the first time the City collected short-term rental
TOT revenue based on the collection agreement with Airbnb. A collection
agreement with another short-term rental site was subsequently adopted.

While in 2016-17 traditional hotel tax receipts represented $233.8 million (88
percent) of total TOT revenue, in 2019-20 it was 83 percent or $211.1 million,
with average 3 year negative trend of 2.7 percent.

Meanwhile short term rental receipts grew from $31.8 million (12 percent of
total TOT revenue) in 2016-17 to $42.4 million (17 percent) in 2019-20. See
the Chart below.

$350 $62.8

$300 $49.4 $42.4
$31.8
$250 $0.0

$200 SHORT TERM

$150 $256.1 TOT
$230.8 $233.8 $249.7 $211.1
$100

$50

$0
FY16 FY17 FY18 FY19 FY20

In the first six months receipts of the current year for both categories are
much lower than 2019-20 actual collected revenues. Short-term rental
receipts are down by 67.5 percent, and regular hotel tax revenue 74.5
percent. We have assumed that by the end of the year both revenues will
recover to shrink the difference to 51.5 percent for short-term rental
revenues, and 65.2 percent for regular TOT revenue. Estimated receipts are
$20.6 million and $73.4 million respectively.

In 2021-22, regular TOT revenue is projected to be $91.4 million based on
estimated increase of 24.1% in occupancy and short-term rentals $25.7
million based on estimated increase of 25.2 percent in demand of rooms per
Hotel Management forecast.

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