Thomasson: The economics of our Paradise Valley resorts

Anna Thomasson

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Our eight noteworthy Paradise Valley resorts are a source of pride for many of us and contribute to Paradise Valley’s global reputation as a world class destination for both visiting and living. They are not only beautiful, but a major economic contributor to our quality of life.

Over 40% of town revenue comes from the sales and “bed tax” generated from our resorts. In the fiscal year that just ended, we received $14 million in retail and hospitality transaction privilege tax revenue (sales tax) and $6.7 million in occupancy tax (bed tax) for a total of $20.7 million toward our $50 million operating budget. Since we do not have a local property tax, these resort-related revenues are a critical source of funding for public safety and all town services.

Our resort-related revenue has more than tripled since fiscal year 2012 when comparable revenues were $5.6 million as more of our resorts were redeveloped and came into full operation. During the pandemic, beginning during March 2020’s prime tourism season, these essential revenues plummeted, hitting Paradise Valley with the largest revenue drop of all cities in Arizona.

Thanks to our stress-tested strategic revenue plan, quick response and significant reserves, we were able to weather the fiscal storm until tourism and travel rebounded enthusiastically yielding record tourism-related revenue in fiscal year 2023.

During that same 10-year period, we fully funded our public safety pension plan, paid down 80% of the courthouse complex debt and built our reserve fund to almost twice our annual operating budget. We should all be proud that our balance sheet is as beautiful as the views from our resorts.

We are fortunate to be supported in our efforts to drive tourism revenue by “Experience Scottsdale,” one of the finest destination marketing organizations in the country. They have succeeded in almost doubling room revenue to Scottsdale and Paradise Valley resorts during the past decade.

Funded largely by investments from the city of Scottsdale and Town of Paradise Valley, our $2.2 million Experience Scottsdale investment in fiscal year 2022 is funded from our $6.7 million occupancy tax revenue. We renegotiated our contract with Experience Scottsdale several years ago and are pleased with the almost ten-fold return on our investment toward our $20.7 million in tourism revenues.

I am proud to sit on the Experience Scottsdale Board of Directors to ensure the interests of Paradise Valley resorts are protected and our investment is well spent. Next time you’re looking for a place for a cold beverage or nice dinner, please consider one of our Paradise Valley resorts.

This week, my husband Gary and I will be celebrating our 21st anniversary at Elements at Sanctuary while reminding ourselves how lucky we are to live in such a beautiful and well-managed town.

Editor's Note: Anna Thomasson is an elected member of Paradise Valley Town Council and member of Experience Scottsdale Board of Directors.