LAYTON -- Even as hotel occupancy rates are rising, the per diem rate lodgers receive for federal government employees is dropping.

That has hoteliers concerned and the Davis Convention & Visitors Bureau (CVB)working to at least restore the previous, higher rates.

"It(per diem) was dropped from $69 (per night) to $60,"says Barbara Riddle, director of the CVB. "That's devastating to Davis County hotels."

The room per diem rates are set by the General Services Administration in Washington, D.C., and generally coincide with the federal government's fiscal year, which starts Oct. 1.

"We are working diligently as a community to get that reversed," Riddle said.

For Layton area hotels, in particular, it could have a major impact because of the many guests who stay there while on business at Hill Air Force Base. "Some hotels could lose up to $50,000 a year, while the (difference in) tax revenue alone is figured at more than $14,000,"she said. "A lot of groups we pursue are government groups."

Rates vary from region to region in the state -- again set by federal officials. For example, Salt Lake City's maximum room rate that would be fully reimbursed for federal employees is $79 per night, while Utah County's is $65. Utah County's was also previously at $69.

Separate meal and entertainment rates are also set, with Davis County falling under the $31-per-night category, a drop of $8. That rate runs to a high of $47 for the more pricey Park City area, no change from the prior year.

Occupancy rates, meanwhile, as compiled in the Rocky Mountain Lodging Report, have tended to be higher than for Salt Lake hotels and motels, Riddle said. For August, the latest month available, Davis County stood at 76.8 percent, or more than three-fourths full. That was up slightly from both June and July, which nudged the 75 percent level.

The highest occupancy rate in the Salt Lake metropolitan area was 71.2 percent for August.

Riddle noted that bookings continue for the new Conference Center, which opened in early September, generating business for neighboring hotels.

"We've had some great success," she said, considering the facility has been open less than a month. "We generated 350 attributable room nights"attributable to meetings at the center, Riddle said.

For example, the Utah Scale Modelers Association held its convention Sept. 24-26, bringing in 300 people plus and was open to the public, while the Utah Environmental Health Association took place Sept. 29-Oct. 1.

Other groups of 100 or more people are scheduled in the near future, ranging from the Soroptimist Club later this week, to Utah Department of Workforce Services, scheduled for two days next week.

"We've got great support from our hotel community," she said of the relationship developing with hoteliers from the county's 26 lodging facilities.

A fam tour (short for familiarization) was held recently to showcase Antelope Island, Riddle said. State Park manager Ron Taylor accompanied a group that included media writers from California, Michigan, Washington, D.C., Nebraska, and Ontario, Canada.

From buffalo prime rib to sunsets featuring four buffalo as backdrops, Riddle said she considered the tour a success. "We will host (also) meeting planners on fam tours.

"We're also very hopeful local companies can look at (trade, other) groups we could bring help bring in with proposals," Riddle said.

For more information call the CVBat 728-7046.

tbusselberg@davisclipper.com