The tourism industry in Lee County has reason to celebrate as the hotels located in this part of Florida have posted an increase in revenues. This rise in revenue for hotels in the area is due to the increase of room reservations and occupancy. It has also helped in gauging the financial health of these establishments. There has been a 5.9% increase from April of this year which is significantly higher than the same month last year.
To measure the financial health of each hotel, the revenue per available room is used while the occupancy of the hotel and the average daily room rate are taken into consideration.
The revenues per available room have shown increase for this year. In April, the revenue per available room rose to $103.84 as compared to $98.13 from the same month of last year. And in the month of March, the revenue per available room also rose 5% or the rate of $163.34 from the rate of $155.56 from last year’s records.
Also in the same period, the percentage of hotel occupancy rose to 1.6% higher at 63.6%. The average daily rate also increased to 4.2% or to $163.33. This was based on the data supplied by the Lee County Visitor and Convention Bureau.
During the economic downturn, most hotels have resorted to lowering down their rates to attract the attention of visitors and tourists. But since there has been an upward trend in the hotel industry’s room occupancy, most establishments have started to slowly raise their room rates at competitively levels.
Another positive sign that most hotel professionals are seeing is the rising hotel occupancy despite the low numbers of airport traffic passengers.
A survey was conducted for the SWFL rentals
companies of these establishments where the Bureau also noted a 45% increase in reservations for the months of May, June and July which is considerably higher compared to the same months of last year.
However, hotel executives in Lee County area remain cautious despite the increase in room rates and occupancy. There are other factors that can derail this increase in the hotel industry’s revenues. Some of the things that can hamper the growth in sales would be increases in gasoline prices and the effects of the economic crisis being experienced in Europe. These can cause the number of local and foreign tourists and visitors to further dwindle.