Consumption Tax Revenue Hits Record In Alexandria

ALEXANDRIA, VA — City consumption tax revenues are recovering from the COVID-19 pandemic, bolstered by expanded marketing funding for Visit Alexandria, the city's tourism organization. At its annual meeting Monday, Visit Alexandria shared revenue numbers as well as its own initiatives to promote tourism in the city.

On Monday, Visit Alexandria reported record consumption tax receipts, which include sales, restaurant and lodging taxes combined. Fiscal year 2022 ended with a record $76 million in combined sales, restaurant and lodging tax receipts, above the $69 million originally projected. Receipts had last reached a record $66 million in fiscal year 2019, but revenues fell to $58 million and $59 million in 2020 and 2021, respectively, during the COVID-19 pandemic.

According to Visit Alexandria, an estimated 71 percent of these consumption tax revenues come from non-Alexandria residents.

In remarks at the meeting, Mayor Justin Wilson highlighted the role of city businesses and their employees in the city's economic recovery from COVID-19.

"I’m grateful for the leadership of our tourism and hospitality sector and the partnership with Visit Alexandria as together we work to continue our city’s economic recovery," said Wilson in a statement. "There is still work to be done, and we know other destinations are upping their game, so we cannot let up."

While consumption tax revenue grew overall, the trends have differed by tax type. Sales tax revenue has grown each year despite the pandemic, while restaurant tax revenue fell from 2019 to 2020 and surpassed the 2019 level in 2022. However, lodging tax revenue hasn't quite recovered to its 2019 level despite more than doubling from the previous year.

Visit Alexandria has worked to promote Alexandria as a destination for visitors through increased funding for marketing campaigns and leveraging national rankings of America's best cities.

With American Rescue Plan funding allocated by City Council to support economic recovery, Visit Alexandria increased its marketing investments by 39 percent. One of its marketing initiatives has been a "Drop In" campaign to tap into the Black travel market. A Spanish language campaign was also launched with Spanish language web pages to target regional visitors. Visit Alexandria also upgraded its website with a mobile-focused design.

A new marketing campaign called "Expand Your ALX" introduced this week focuses on the city's neighborhoods to increase visibility to visitors who are familiar with Old Town. The campaign features the West End, Del Ray, Arlandria and Carlyle neighborhoods with online video, social media, print, and digital display advertising. A website has been launched at ExpandYourALX.com, and more neighborhood-focused content will be produced in 2023.

"Expand Your ALX is an exciting invitation to not only explore our physical neighborhoods but also to expand your understanding and experience of the diverse cultures, people and history in our city," said Visit Alexandria's President and CEO Patricia Washington. "With this new campaign, we are excited to step up the impact of visitor spending across Alexandria."

The tourism organization has also focused on getting Alexandria on national best city lists. On Tuesday, it was announced Alexandria ranked as the fourth-best small city in the 2022 Condé Nast Traveler Readers’ Choice Awards. The city has ranked in the top five since the small city category was created in 2018. This summer, Travel + Leisure ranked Alexandria eighth in the 15 Best Cities in the United States list. Southern Living magazine has also ranked Alexandria in its best city awards in recent years.

In the new fiscal year, Visit Alexandria will launch a new destination advertising campaign, work on Alexandria Visitor Center renovations, continue its new "Expand Your ALX" campaign, and seek small meeting and wedding opportunities hosted in the city.

Visit Alexandria continues to host notable events throughout the year, including Alexandria Restaurant Week, Portside in Old Town festivals and Holiday Boat Parade of Lights. This year, Visit Alexandria will take over hosting duties for the Scottish Christmas Walk Parade with continued support from the Campagna Center and the city government. The Scottish Christmas Walk Parade happens the same day as the Holiday Boat Parade of Lights — Saturday, Dec. 3 in 2022.