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A business district created to generate funds for destination marketing and capital investment
Tourism businesses collect new visitor fees to fund local tourism marketing & development
TIDs are a hospitality-specific model of the traditional Business Improvement District (BID). TIDs use special benefit assessments, rather than general taxes, to raise revenue to use for destination marketing and tourism promotion. Funds raised through these assessments cannot be diverted into other government programs and can only be spent on programs that benefit those who pay into the district, in most cases hotels.
What does a TID do?
A TID’s mission is to promote and improve tourism in the designated boundaries. Activities may include print and internet advertising, website operations, visitor services, sales lead generation and other significant sales and marketing programs that benefit the payors by increasing demand for overnight visitation.
In 2021, the Code of Virginia was created by passing Article 3. Tourism Improvement Districts / § 15.2-2413.1. This authorized any locality to:
– create a local tourism improvement district plan
– contract with a nonprofit entity to administer the activities and improvements.
– establish fees charged to businesses
– fund tourism promotion activities
View this short presentation for a TIDs overview
For more information on establishing TIDs in Virginia, contact:
Tiffany Gallagher
Eastern US Branch Manager
Civitas ❘ Tourism Improvement Districts *Deep Dive on TIDs
(800) 999-7781 –office
tgallagher@civitasadvisors.com