"The dramatic rise is the single largest increase in almost 10 years for Niagara County," according to a statement released Thursday by the Niagara County Department of Planning, Development and Tourism.

"This data represents a significant upturn in hotel activity for Niagara County," said Cyd Bennett, deputy commissioner of tourism for the county. "It is very encouraging and we hope it will usher in even greater activity for the future."

Taxable hotel sales totaled $45.8 million in 1997-98, compared to $40.5 million for 1996-97, when there was an increase of just 1.09 percent over the previous year.

However, Niagara Falls hotel tax receipts, which are believed to comprise the bulk of the county tourism dollar, rose by only about 7 percent from 1996 to 1997, according to Niagara Falls city budget figures. The city collected $1,098,617 in 1996 and $1,175,073 in 1997.

At 4 percent, those bed tax figures represent total hotel room sales of $ 7.4 million during 1996 and $29.3 million during 1997, or a 7 percent increase. The city figures are based on the calendar year, while figures quoted by the county are based on the state's fiscal year, which begins April 1.

No further figures on hotel business were available from the county, city or the Convention & Visitors Bureau.

Doreen H. O'Connor, executive vice president of Sevenson Hotel Associates, which owns the Comfort Inn-the Pointe, said the state tax figures sound like good news. She said Smith Travel Research showed an 8 percent decline in the occupancy rate in

Niagara Falls from 57.7 in 1997 to 49.7 in 1998. But, Smith Travel Research reports only on franchised properties, not independently owned properties, of which there are many in Niagara Falls.

Mrs. O'Connor said the Comfort Inn had a good year, with a 5 percent increase in occupancy in 1998. She said she attributed that partially to the fact the Sheraton Four Points was closed for renovations for the season and the Clarion had half its rooms closed for renovations.

Mrs. O'Connor said those facts could account for the decrease shown by Smith Travel Research.

"If they put in a 200-room hotel at zero occupancy, it would skew all of the numbers," she said, adding that she had not been able to ascertain what figures Smith had used.