City reviews short-term rental compliance amid rising hotel occupancy rates

Short-term rentals in Georgetown are experiencing fluctuations in usage, particularly during local events, according to discussions from the recent government workshop. Officials noted that while many properties are registered for short-term rentals, their activity varies throughout the year. For instance, rentals peak during events like the Red Poppy Festival, but many properties remain inactive during off-peak times.

City representatives expressed confidence that most property owners are compliant with registration, but acknowledged the need for internal audits to ensure tax payments are being reported accurately. This proactive approach aims to address any discrepancies where properties may be generating rental income without proper tax reporting.

In terms of overall tourism, the occupancy rate has dipped due to the introduction of new hotel rooms, yet the total number of overnight visitors has remained steady. Officials indicated that it may take time for the new hotels to fully impact visitor statistics.

Financially, the tourism fund is in a healthy position, with revenues exceeding expenditures. Projections for FY '25 show expenses are running approximately 8% under budget, allowing for continued operational stability despite the revenue fluctuations. Looking ahead to FY '26, the budget reflects a 21% increase, although this is largely due to previous lower projections rather than an actual surge in spending.

The discussions highlight Georgetown's ongoing efforts to manage its tourism sector effectively while ensuring compliance and financial health.