North Pole bed tax collections up 137% so far in 2026, Explore Fairbanks tells council

North Pole collected about $128,000 in bed taxes through June, up from roughly $54,000 over the same stretch last year, Explore Fairbanks President and CEO Scott McCray told the North Pole City Council on Monday.

"137% increase in bed tax collections over last year," McCray said. "Almost $54,000 he had last year, $128,000 for this year."

McCray attributed much of the jump to lodging that was already operating but not paying taxes. "My speculation, as was the case with the other two government entities, is a lot of that is coming from short-term rentals and the ability to collect those that have been out there that haven't been collected before," he said. He told the council he was open to other explanations.

The pattern holds across the borough. "Across the borough, bed taxes are up quite a bit over last year, already at the $5 million mark," McCray said, projecting roughly $10 million once the year closes.

Other tourism indicators were mixed. Hotel occupancy through June ran 68%, up from 63% a year earlier, McCray said. Short-term rental listings have thinned out, which he called a needed correction after supply outran demand. He said the Alaska Railroad and border crossings performed well, while Fairbanks International Airport traffic stayed roughly flat and visitation at the Morris Thompson Center slipped.

McCray pointed to new attractions across the borough, including the Santa Claus House expansion and the Antique Auto Museum's move to the old camera building. That vacated space is being converted into a convention center set to open next month, when Fairbanks hosts the Alaska Travel Industry Association's annual convention.

He also told the council that AFAR magazine named North Pole one of the 50 most charming small towns in the country after Explore Fairbanks pitched both Fairbanks and North Pole, and judges found Fairbanks too big. McCray said he would send the council the link, noting the listing still includes Little Richard's Diner, which has closed.

If collections hold, McCray said, North Pole is headed for a record year.