VCC reports increased earnings despite fewer hotel room rentals
Published 12:00 am Friday, July 31, 2009
Even with lower-than-expected revenue from the 2 percent tax collected on all hotel stays in the city that directly benefits the Vicksburg Convention Center and Vicksburg Auditorium, Larry Gawronski said the facilities posted positive numbers in the quarter ending June 30.
“The success is due to a few very strong bookings in the third quarter — most especially the 412th Warfighter Conference and Castle Ball. They literally invaded this place for a week… and they spent a lot of dollars,” said Gawronski, executive director of VenuWorks, which manages the city-owned facilities.
In total, 52 events were held at the facilities in the quarter, comprising 18 banquets, 17 meetings, 11 spectator events, four conventions and two trade shows. Comparatively, 48 events were hosted in the second quarter and 56 in the first. The figures were presented to the Vicksburg Convention Center and Auditorium advisory board of directors at its quarterly meeting Thursday.
Lodging tax revenue came in 18 percent under budget for the third quarter, however, it is nearly flat with fiscal year-to- date expectations — approximately $350,000 collected compared to $351,000 budgeted.
Five hotels have been built over the past year in Vicksburg, bringing the city’s total to 31, creating approximately 400 more rooms in the city. Occupancy, meanwhile, has been consistently off this year. June’s report from Smith Travel Research showed occupancy at 64.1 percent, compared to 73.4 percent a year ago. It was the first month occupancy broke 60 percent all year, with rates in the previous six months hovering in the mid-50 percentile.
Revenue from both facilities — before the lodging tax is factored in — exceeded budget expectations for the three-month quarter, a total of $126,000 for the convention center and $25,370 for the smaller, older auditorium. With the lodging tax, the convention center posted an overall profit of $1,932, while it had budgeted for an operating loss of $6,993.
Expenses ran under budget at the convention center by $25,000, or 10 percent, while auditorium expenses were 2 percent over budget due primarily to contract labor for emergency repairs on stage and rigging equipment. Meanwhile, the roof of the auditorium is expected to get under construction soon and be completed by Sept. 30. Central Roofing of West Monroe has been contracted by the city to do the work for $74,287.
Aside from the 2 percent lodging tax, the convention center and auditorium are primarily subsidized by the City of Vicksburg. Gawronski and other administrators met with the Vicksburg Board of Mayor and Aldermen on Wednesday to discuss the upcoming budget, in which they anticipate needing about $220,000 in the next fiscal year.
“We continue our pledge to the city to reduce the net operating deficit of the convention center by 50 percent over a three-year period that began (on Oct. 1, 2007),” said Gawronski, adding a goal of cutting the deficit by 20 percent will be surpassed at the end of the fiscal year.
The deficit had been cut by 25 percent in fiscal year 2008. The convention center had a net operating loss of $354,807 in fiscal year 2007, and reduced it to $246,639 in 2008.
Gawronski said it’s tough to forecast what the fourth-quarter numbers for the fiscal year will look like.
“Our last quarter is a mixed bag, with a strong July and a historically light August and September,” he said.
July’s big event — and one of the convention center’s largest of the year — is the Miss Mississippi Pageant, which wrapped up July 18. Large fourth-quarter events at the convention center include the Beautiful Bride 2009 wedding convention and fashion show on Sept. 27.
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Contact Steve Sanoski at ssanoski@vicksburgpost.com