In some States, Legislatures have enabled the imposition of local Hotel Room Taxes without any guidance on how these revenues should be invested. As one can imagine, the abuses of original intent are significant.
More sophisticated States have been very clear on such investment...and their Visitor Economies have flourished.
Up until last week, Colorado was one of those States, directing that 100% of local Room Taxes go to Destination Marketing and Development. But, in the face of some local communities pushing back on visitor congestion and a disturbing lack of workforce housing, the Governor has signed a bill allowing communities to spend up to 90% of collections on initiatives outside of marketing.
Can you say "knee-jerk?"
Hey...I have no qualms with redirecting Room Tax revenues to where it needs to go as the hospitality industry fights to regain its footing. But, let's be clear, saying only 10% must go to marketing will become the new norm...and only 10% is what will be end up being invested in marketing.
Until Colorado has another 1990's moment and tries to claw back its losses in tourism spending.
Couldn't we have tried 50% to start?
Just a thought.
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