KALAMA — McMenamins’ Kalama Harbor Lodge has been open for just over five months, but it’s significantly increased the city’s hotel tax revenue and downtown foot-traffic.
The 40-room lodge has increased the city’s hotel/motel tax revenue from $3,000 to $4,000 a year to $3,000 a month, said Coni McMaster, city clerk and treasurer. Kalama already has received $14,000 in hotel tax revenue this year, more than three times the $4,000 it budgeted.
“It’s a considerable increase,” McMaster said. “Even if that dropped by half, it will still be a lot more than in the past.”
A 2 percent tax is charged at hotels or motels with fewer than 40 rooms, and 3 percent at those with 40 or more.
McMaster said McMennamins is drawing more people to other businesses in town. Multiple businesses, including restaurants, have reported a sales boost since McMenamins opened near the Port of Kalama Marine Park in April. Overall, the town has seen more visitors, she said.
John Norton, owner of 1st Street Antiques, said his business has seen a 10 percent to 20 percent increase in sales.
“I think they’ve been an asset,” Norton said of McMenamins. “It’s hard to say exactly how much it’s helped, but often people say they’re staying at McMenamins and came over to see what’s going on in downtown Kalama.”
Columbia Inn Assistant Manager Lisa Hassett said the restaurant’s also been busier. She said they had some concerns about competition before McMenamins opened, since it also has a restaurant, but that’s changed.
“When you stay at a hotel, you’re not going to eat all three meals there,” Hassett said. “We don’t have any complaints about them being here.”
Home goods store Ella Gray has seen an increase in foot traffic, owner April Hoffman said, but McMenamins’ presence hasn’t “shot the business through the roof.” Hoffman said the drawback she’s seen is that there isn’t an easy way for McMenamins’ guests to get to downtown. The Port of Kalama and city are working on getting a better pedestrian bridge that will help, she said.
McMaster said Kalama has also seen some increase in sales tax revenue, but it’s difficult to know how much is due solely to McMenamins. There has been a lot of construction in the past year and that is another source of sales tax, she said.
The city is limited by state law in how it can spend hotel tax revenue. That money only can be used for tourism activities or promotions designed to attract overnight tourists. This includes funding for events such as the Untouchables Car Show and Heritage Festival.
The city could also use the money to redo its wayfinding signs, develop a walking map or purchase souvenirs to sell to tourists.
