Motel room tax receipts in Albany fell during the last three months of 2008.

Room taxes in October-December 2008 were down nearly 12 percent from those same three months in 2007, said John Stahl, the city's assistant finance director.

He said room tax revenue for October through December 2007 was $153,000. In 2008, the total was $135,000.

The amount for July through December 2007 was $445,000, while the same period in 2008 was $432,000, about a 3 percent decline.

Currently, room tax collections help fund the Albany Visitors Association, the Albany Downtown Association and the Albany-Millersburg Economic Development Corp. They also are used to pay off debt service on a $2.3 million bond issued in 1995 to construct the Linn County Fair & Expo Center. Fiscal year 2009-10 is the last year the city must pay on the bond, Stahl said.

It will be up to the city council to decide where the room receipts go once the debt is paid off.

The drop in room taxes was caused primarily by high gasoline prices and businesses saving money by conducting meetings over the Internet or by using video conferencing, said Jimmie Lucht, the executive director of the AVA.

Another reason is people who are traveling aren't going as far and don't require motel rooms, he said.

To counteract the downward trend, Lucht said, a grant from Travel Oregon is going to pay for more advertising in regional circulation periodicals.

"If we can continue to increase our marketing when the market turns downward, we will get a bigger share of the travel market when the market turns back around," he said. "We want to keep people aware of Albany so we will gain a bigger share of travel money."

Efforts also are under way to promote interesting places to visit in cities near Albany, such as Lebanon and Brownsville. A map that lists attractions in those cities is being prepared.

"We aren't Disneyland, so we know people aren't going to stay a week in Albany," Lucht said. "But if we can entice people to go to Brownsville or see the covered bridges, they will stay longer in our motels."

The recent opening of the Cascade Grill & Bar near the Comfort Inn Suites and the Holiday Inn Express is a positive note, he added. The restaurant is attracting visitors to the area.