Tourism Improvement Districts

A tourism improvement district (TID) is a stable funding source for marketing efforts to increase occupancy and room rates for lodging businesses. Funds raised through a small assessment on lodging stays provide services desired by and directly benefitting the businesses in the district. A TID is NOT a tax.

There are currently 194 TIDs around the U.S. in small, medium, and large markets. In addition to eighteen states that have TIDs, 12 more states are considering TIDs, including Illinois and Iowa.  Read the blog on TID's or look at the presentation, watch the video below.

• What does a TID do? The services funded by a TID could fund destination marketing, promotions, business development, and potential capital improvements that make a destination more attractive to potential visitors. A charge is assessed or passed on usually to the hotel customer. A local government typically collects the funds generated like transient occupancy tax (hotel/motel tax revenues). However, unlike hotel/motel taxes, they cannot be spent on general programs by a government. The funds must be directed for destination marketing to create tourism opportunities and overnight hotel stays.
• How is a TID governed, administered, and operated? A TID board is created separately from the Visit Quad Cities Board of Directors. The TID board is comprised of local hoteliers who oversee the pool of dollars generated by the revenue collected. They have an agreement with the destination marketing organization (DMO) Visit Quad Cities which administers the fund and conducts the execution of the district plan, which is developed in partnership by the TID board and Visit Quad Cities. A plan is created and fulfilled to achieve the objectives of the district plan. Most district plans have five-to-ten-year terms to provide stability and consistency. However, we would ensure alignment in mission and purpose. The amount of revenue available for a TID would depend on the board's district plan. Research on other markets and their specific approaches would be available to provide necessary benchmarks.  
• Does a TID replace hotel/motel revenue inflow to Visit Quad Cities? No. A TID is meant to be an additive and stable source of incremental funding for destination marketing purposes. The funds are intended to be invested more in tourism marketing to be competitive in a hyper-competitive space. The revenues generated by a TID do not directly impact the bottom line of Visit Quad Cities except for any potential costs to administer the TID.
• How long does it take to form a TID, and where are we in the process? TIDs can take anywhere from 12-24 months, depending on the market and situation within a local community. They require advocacy efforts, education, buy-in within the hospitality industry, and public sector support. Visit Quad Cities has been exploring TIDs since November 2019, and the Board of Directors unanimously voted to support pursuing a TID concept on January 19, 2022. There has been enabling legislation that has been drafted but no action legislatively in Illinois or Iowa. We anticipate the next legislative cycle for these discussions to occur in the Fall of 2022 and Winter of 2023.