Share:
Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2021 - 2022
Regular Session
MEMORANDUM
| Posted: | April 5, 2022 12:10 PM |
|---|---|
| From: | Senator John T. Yudichak and Sen. David G. Argall |
| To: | All Senate members |
| Subject: | Tourism Improvement Districts |
| The global COVID-19 pandemic and its affiliated variants have completely upended the hospitality and tourism industries throughout Pennsylvania. Now – more so than ever – county governments are looking to the state legislature to provide resources and innovative policies to spur economic development, generate jobs and revive commerce in downtowns. Despite a recent upswing in positive trajectories, industry experts are estimating that the recovery timeline for the travel industry will take up to five years. As a result, we intend to introduce legislation formalizing the tourism improvement district process in Pennsylvania. Since originating in California in 1989, more than 195 tourism improvement districts have been established in 19 states, revolutionizing destination marketing funding, and increasing destination marketing budgets by $405 million. Three state legislatures have adopted legislation formally authorizing tourism improvement districts, while a dozen other states are implementing or considering similar legislation. There are three active tourism improvement districts in Pennsylvania, although there is no specific state statute standardizing this type of economic development endeavor at the county level. Tourism improvement districts are aimed at boosting commerce in a specific geographic area, by enhancing brand development, marketing initiatives, public relations, digital marketing expansion, and special event subsidies. Additionally, these districts are created to boost overall visitation to areas, thus increasing the number of guests utilizing local hotel services. A formalized tourism improvement district process in Pennsylvania would result in a stable source of funding for marketing efforts, designed to increase occupancy and room rates for lodging businesses. Funds raised through a locally-approved assessment on lodging stays – established between the enabling county and a coalition of property owners – are utilized to provide sales and marketing initiatives that directly benefit the businesses within a geographical district. As evidenced via other states, these districts provide a stable source of funding for activities and improvements designed to elevate the experience for consumers of benefiting properties. Currently, the only county permitted under state law to implement any type of neighborhood or tourism improvement district is Philadelphia County, although, legislation being considered by the General Assembly would extend that provision to Allegheny County. As the chair of the Senate Community, Economic & Recreational Development Committee, we have heard from numerous counties across the Commonwealth who believe this type of legislative measure – if extended throughout Pennsylvania – would provide our communities with additional tools to generate and facilitate economic development. My proposal will simply serve as enabling legislation for counties that want to participate and enact a tourism improvement district in their local communities. Tourism improvement districts do not require any new general fund dollars from state or local governments, and are a proven source of stable, dedicated funding for neighborhood promotion. When visitors travel to Pennsylvania, everybody wins - - - local businesses, small-town shop owners, and taxpayers who benefit from tourists generating new revenues for the state and local budgets. As we have seen in other states, tourism improvement districts allow businesses to rebuild and bring employees back to work faster. It is our hope that creating an official process for establishing a tourism improvement district in Pennsylvania will augment recovery efforts, and help our state thrive competitively with a renewed focus on tourism. Please join us in co-sponsoring this important legislative measure. |