Bill to help Arizona communities attract more visitors

A bill to help Arizona cities and counties better market their best features to would-be tourists has passed its first hurdle in the state Legislature.  

The measure, SB 1335, would allow for the creation of funding vehicles, called Tourism Marketing Authorities (TMAs), that collect fees assessed on sold hotel and resort guest rooms. Those fees would then be allocated to cities and counties to use for marketing campaigns. 

Currently, there are 180 TMAs across the U.S. If approved in Arizona, this could give communities a leg up in competing for visitors, advocates said. 

“The travel and tourism industry is a critical element of Arizona’s growing economy that must be protected,” said Kim Sabow, president and CEO of the Arizona Lodging and Tourism Association. “Each year, more than 45 million visitors explore the diverse attractions in Arizona infusing nearly $25 billion into our state. But we need to do more to stay competitive with other regions across the nation.”  

Sponsored by Sen. Tyler Pace, (R), Mesa, and Sen. Sean Bowie (D), Ahwatukee, the bill was approved by the Senate Finance Committee, 8-2.

Chambers, hotels, tourism groups and sports teams support bill

Dozens of municipal hotels, chambers of commerce, sports teams and others are publicly backing the measure. Among them: the Phoenix Suns, Phoenix Mercury, Omni Resorts, Enchantment Resort, Sedona Lodge, Hassayampa Inn, Westroc Collection and HSL Properties.  

“The establishment of Tourism Marketing Authorities will provide much-needed resources to ensure that localities are able to expand their marketing efforts to attract more visitors,” Sabow said. “Our diverse coalition is a testament of how this industry impacts every corner of the state. In addition, Senator Pace has been steadfast in leading this bill and gaining the support of his colleagues at the Legislature. I thank him for his tireless work.”

How it works 

Municipalities of any size and counties with fewer than 2 million residents would be able to form TMAs under the proposed bill. If a majority of hotels in the designated boundaries agree to create an authority district, assessments would be levied on sold hotel and resort guest rooms.

Hoteliers would vote on this assessment and have input on how the dollars are invested. TMAs can only be created if not less than 67 percent of represented hotels and resorts submit a petition to the applicable government body asking for the authority to be established. 

Assessments would be remitted to the Arizona Department of Revenue that would allocate them to applicable communities. The dollar amount assessed would be determined by each authority. 

Destination marketing organizations (DMOs) in jurisdictions with TMAs would use the money

for new sales, marketing and promotional projects. DMO boards also would oversee the TMAs, providing performance reports to participating county governments. 

Tourism districts generate more than $420 million annually 

To date, 180 of these agreements have been established in at least 15 states. Among those benefiting? Chicago, Los Angeles, Nashville, New Orleans, Napa Valley, Philadelphia, San Diego, and San Francisco.  

Also referred to as Tourism Marketing Improvement Districts or Tourism Business Improvement Districts, they generated more than $420 million in marketing revenue last year, according to statistics compiled by Civitas Advisors that specializes in the creation of improvement districts.

If approved in Arizona, the legislation would go into effect Aug. 1.  

Benefits 

TMAs provide a number of benefits, according to proponents: 

• More visitors and visitor dollars to participating communities.
• More state, county and municipal tax revenue from visitors.
• More visitor revenue to pay for Arizona education, public safety and health care.
• More jobs
• New visitor marketing, sales and promotion tailored to the participating communities

Who’s backing the bill?

Tourism groups, hotels and resorts, chambers of commerce, sports teams, businesses and others across Arizona that support SB1335 include:

Arizona Chamber of Commerce & Industry 

Arizona Lodging and Tourism Association 

Avondale

Collaborative Event Management 

Enchantment Group

Enchantment Resort

Experience Scottsdale

Go Lake Havasu

Greater Phoenix Chamber

Glendale

Hacienda Del Sol Guest Ranch Resort

Hassayampa Inn

Hospitality Sales and Marketing Association International, Arizona Chapter

HSL Properties

Meeting Professionals International, Arizona Chapter

North Central Group

Omni Resorts

Phoenix Mercury

Phoenix Suns

Ponderosa Hotel Management Sources

Prescott Office of Tourism

Rainbow Ryders Hot Air Balloon Ride Co.

Sedona Chamber of Commerce & Tourism Bureau

Sedona Lodging Council

Sonesta Suites

Tempe Tourism Office 

Tucson Airport Authority

Tucson Convention and Visitors Bureau

Visit Mesa

Visit Phoenix

Visit Tucson 

Westroc Collection

Young’s Market Company

Yuma 

For more information about the bill, go to: SB1335