Accommodation sales in Cochise County saw negative growth in October after a booming year that saw sales receipts soar. Accommodation sales, which include hotel, motel, and other temporary lodging, totaled $3.3 million in October, down from $3.4 million in October 2006. This is a decline of 6.4 percent after adjusting for inflation. Despite October’s decline, sales for the first 10 months of last year were up 22.6 percent in inflation-adjusted terms. Growth was particularly strong from June through September.

Retail sales in Cochise County in October climbed 6 percent after inflation, following a decline of 8.3 percent in September. Sales in October totaled $63.9 million, up from $58.3 million in October 2006. Overall, retail sales in the county were up 1.4 percent from January through October, after adjusting for inflation.

Retail sales at the county level alternated between periods of positive and negative growth in the first 10 months of 2007, reflecting instability and uncertainty in consumer confidence. Sales were up in January, March, June, August, and October, but were down in February, April, May, July, and September.

Cochise County’s restaurant and bar sales totaled $10 million in October, down 11.4 percent after inflation. This reflects a continued deterioration from strong growth earlier in the year. For the first 10 months of 2007, restaurant and bars sales were up 4.1 percent compared to the same period of 2006, after adjusting for inflation.

At the city level, restaurant and bar receipts in Benson totaled $789,000 in October, an inflation-adjusted decline of 19.6 percent. For the first 10 months of last year, Benson’s restaurant and bar sales were down 2 percent after inflation. Sales struggled much of the year, with the exception of January, April, June, and July, which saw strong growth compared to the same months the year prior.

Benson’s accommodation receipts totaled $267,000 in October, down 14.4 percent in inflation-adjusted terms. Despite October’s decline, sales were up 14 percent from January through October, after the inflation factor.

Retail sales are not reported for Benson due to the city’s two-tiered tax system, which precludes accurately estimating sales based on tax collections. Retail sales tax revenue, however, was up 50.9 percent in the October comparisons. From January through October, the city’s retail sales tax revenue was up 50 percent. The increase is due primarily to the opening of the new Wal-Mart Supercenter in November 2006.  

In Bisbee, retail sales in October came in at $2.9 million, for inflation-adjusted growth of 6.8 percent. For the first 10 months of the year, sales were up 6.1 percent after inflation. Bisbee’s retail sales saw double-digit growth in 4 out of 5 months from June through October, following much slower growth earlier in the year.

Bisbee’s restaurant and bar sales in October were down 18 percent after adjusting for inflation. Sales for the month totaled $580,000. This represents the fifth consecutive month of declining sales. On the whole, Bisbee’s restaurant and bar sales were down 4.6 percent from January through October, after adjusting for inflation. Sales were down in February and April, and each month from June through October.

Bisbee’s accommodation receipts totaled $201,000 in October. This was up 2.8 percent from October 2006, after adjusting for inflation. In the first 10 months of last year, accommodation sales were up 31.4 percent after inflation.

In Douglas, restaurant and bar sales fell to $956,000, down 11 percent after inflation. This was the fourth consecutive month of declining sales. For the first 10 months of the year, sales were down 1 percent after inflation.  

Retail sales are not reported for Douglas due to the city’s two-tiered tax system. Retail sales tax revenue, however, was down 3.1 percent in the October comparisons. From January through October, retail sales tax revenue was up 4.2 percent.

Accommodation sales are not reported for Douglas due to the small number of establishments and the Arizona Department of Revenue’s confidentiality policy.

In Huachuca City, retail sales totaled $445,000 in October. This was down 40.6 percent from a year prior, after adjusting for inflation. Overall, sales were down 10.6 percent in inflation-adjusted terms for the first 10 months of last year.

Accommodation and restaurant and bar sales are not reported for Huachuca City due to the small number of establishments and ADOR’s confidentiality policy.

In Sierra Vista, retail sales came in at $41.5 million in October. This was up 3.6 percent after inflation. For the first 10 months of the year, sales were up 4 percent after adjusting for inflation.

Sierra Vista’s restaurant and bar sales fell to $5.1 million in October. This represents an inflation-adjusted decrease of 20.5 percent. From January through October, sales were up 6.3 percent after inflation.

Sierra Vista’s accommodation sales fell to $1.5 million in October, down 6.6 percent after inflation. For the first 10 months of the year, sales were up 23.6 percent in inflation-adjusted terms. Much of this year’s growth is attributable to the opening of new hotels, which reduces leakage to surrounding areas. October’s decline may reflect some downward pressure on room rates, as a result of increased competition.  

In Tombstone, retail sales in October were down 18 percent after inflation. October sales totaled $904,000. From January through October, sales were down 2.8 percent in inflation-adjusted terms.  

Tombstone’s restaurant and bar sales totaled $710,000 in October. This is a 1.6 percent inflation-adjusted decline from a year prior. For the first 10 months of 2007, sales were up 14.5 percent after adjusting for inflation.

Accommodation receipts in Tombstone totaled $177,000 in October, for inflation-adjusted growth of -36.0 percent. In the first 10 months of the year, accommodation sales were down 0.9 percent after inflation.

In Willcox, restaurant and bar sales fell to $664,000 in October, for an inflation-adjusted drop of 5.1 percent. For the first 10 months of the year, restaurant and bar sales in Willcox were down 1.2 percent after inflation.

Accommodation receipts in Willcox fell to $447,000 in October, for inflation-adjusted growth of -4.7 percent. In the first 10 months of the year, receipts were up 30.5 percent after adjusting for inflation. Sales saw double-digit growth every month from March through September.

Retail sales are not reported for Willcox due to the city’s two-tiered tax system. Retail sales tax revenue, however, was down 8.1 percent in the October comparisons. From January through October, the city’s retail sales tax revenue was up 4.7 percent compared to the same period of 2006.

If you have any questions on the economy, please contact the Cochise College Center for Economic Research at (520) 515-5486 or email us at cer@cochise.edu. Be sure to check out the CER’s website at www.cochise.edu/cer.