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After years of pushing for a new funding source to increase marketing spends, the state’s tourism industry got a win this month from Arizona Gov. Katie Hobbs, who signed a bill that establishes tourism improvement areas (TIAs) into law.
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House Bill 2950, signed by Hobbs on June 19, will allow lodging businesses – hotels, motels and resorts – to collaborate and create a TIA, which can levy a “lodging business assessment” of up to 5% on every overnight stay.
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That money will then go toward a collective fund that can be used for “tourism improvement area activities,” which the law defines as advertising, promotion or business recruitment that will directly impact the hotels within the TIA. The law directly states the money can’t be used for any construction or maintenance of physical infrastructure.
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Read more of this story from the Business Journal.