LOUISVILLE, Ky. (WDRB) – Louisville’s tourism agency projects the city’s hotel tax revenue could plummet by up to 85 percent during the COVID-19 pandemic, triggering a budget shortfall at a time usually boosted by the Kentucky Derby.
Louisville Tourism’s board of commissioners approved a series of measures on Thursday to fill a shortfall expected to be $8.4 million, agreeing to an immediate hiring freeze, pay cuts and shorter weeks for full-time employees and furloughs for at least 70 part-time workers, among other steps.
The agency, which markets Louisville’s convention and tourism industries, is almost entirely funded by taxes paid on local hotel rooms. It had expected those taxes to bring in $20.7 million during the year that ends in June, but now is counting on $13.6 million, said Chris Kipper, Louisville Tourism’s chief financial officer.
Louisville Tourism also has rescheduled some groups that had planned to have events in Louisville in April and May to later in 2020. It also plans to tap some reserves and suspend a payment into the Kentucky International Convention Center capital improvement fund.
“A lot of the things that we did are very similar and in lockstep with … our competitive set all over the United States right now,” Louisville Tourism President and CEO Karen Williams said at a meeting of the agency’s finance committee.
Tourism officials said even after shifting $3 million from reserve funds set aside for debt for the convention center, there still is enough money for future debt payments for at least two years.
Reach reporter Marcus Green at 502-585-0825, mgreen@wdrb.com, on Twitter or on Facebook. Copyright 2020 WDRB Media. All rights reserved.
