A business district created to generate funds
for destination marketing and capital investment
Tourism businesses collect new visitor fees
to fund local tourism marketing and 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 June 2021, the Code of Virginia was amended by adding in Chapter 24 of Title 15.2 an article numbered 3, consisting of sections numbered 15.2-2413.1 through 15.2-2413.11. 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
For more information on establishing TIDs in Virginia, contact: