Photo Credit: Arianna Grainey
The common refrain within the United States in 2024 has been something to the effect of “times are tight”, and when that’s the case often vacations are amongst the first items to be sacrificed. But you wouldn’t know that if you looked at Scottsdale.
According to a recent report from Scottsdale’s Tourism and Events Director, the city will likely see an increase in its collection from the “bed tax” focused specifically on tourists staying in hotel rooms here. While it is projected to be a “slight increase” up to $32 million for the fiscal year starting in July, it also represents a coup of sorts, a statement of resilience.
After all, 2024 was the year where the economy was the number one hot-button subject with the political campaigns that dominated the conversation throughout the country. Interest rates were high, credit card defaults and car repossession were at decade-plus highs, and for much of the country it simply was not a time to be spending on luxury items and experiences. While some of the rhetoric was very likely election year discourse meant to persuade voters, the numbers are the numbers.
One might surmise that this resiliency is a result of one significant factor: even with the year’s economic difficulties, the higher end of the income spectrum is doing quite well. Scottsdale by nature tends to cater to those types. After all, those who enjoy golf and luxury resorts are likely somewhat immune to the more serious issues of economic weakness. It serves as a sort of competitive advantage, so long as the number of 110-degree days per year doesn’t continue to expand.
It’s also worth noting that several of the incoming city councilmembers and our new mayor have talked about reigning in what they perceived as runaway spending. It will be interesting to see if they do take a scalpel (or an ax) to the city budget and reduce spending significantly. When paired with better-than-expected revenues we could have a catalyst for a robust budget surplus, and with it, an impetus to lower taxes. And this would be in addition to our sales tax ticking down by a bit as a result of Proposition 490.
Yet again we find ourselves thankful to be here. While some cities have to find way to raise revenue (typically on the backs of the hard-working and prosperous) we can actually have conversations about lowering taxes while maintaining a lifestyle that is the envy of money. We truly are fortunate.