North Pole's bed tax collections are up 137% and headed for a record year

North Pole collected about $128,000 in bed taxes through June, up 137% 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.

McCray said much of the jump likely comes from lodging that was already operating but not paying the tax. "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.

"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. Its former 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. The listing still includes Little Richard's Diner, which has closed, McCray noted.

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