PROVIDENCE – Fiscal 2021 collections of the state’s 5% hotel tax totaled $15 million, a decline of 15% year over year, the R.I. Department of Health said Wednesday.
The state’s hospitality industry has been one of the hardest hit in the state by the COVID-19 pandemic, as social gatherings were limited, travel declined and conventions were canceled.
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Of the total 5% hotel tax collection in fiscal 2021, just under $14 million was collected from traditional hotels, while $1.1 million was collected from room resellers and hosting platforms.
Of the total collection, $6.2 million was allocated to regional tourism districts for the fiscal year, with the largest share going to the Aquidneck Island district at $3 million.
Municipalities were allocated $3.7 million for the fiscal year, with the largest share going to Newport at $1.2 million. Providence saw the largest nominal year-over-year decline in allocations of the tax to any municipality, falling from $807,409 in fiscal 2020 to $431,646 in fiscal 2021.
R.I. Commerce Corp. was allocated $3.8 million and the Providence Warwick Convention & visitors Bureau received $1.3 million in the fiscal year.
The state’s fiscal year begins on July 1.
Despite the decline in collections for the overall fiscal year, collection of the 5% hotel tax collection saw a rebound in June. Collection of the tax totaled $2.6 million for the month, a rise from $1 million one year prior.
