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 benefit the businesses in the district. A TID is NOT a tax.

There are currently 221 TIDs around the U.S. in small, medium, and large markets. In addition to twenty-five states that have TIDs, 11 more states are considering TIDs, including Iowa. The State of Illinois passed TID enabling legislation IL HB268 and it was signed into law on February 10, 2023 by Governor Pritzker. There are currently no active TIDs in Illinois but there are more than ten destination marketing organizations (DMOs) and communities actively pursuing the development of a local district plan. 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 towards destination marketing to create tourism opportunities and overnight hotel stays and demand.
• How is a TID governed, administered, and operated? A TID board or committee is created separately from the Visit Quad Cities Board of Directors. The TID board or committee 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. TIDs are supplemental to hotel/motel tax flow to a DMO and are private sector solution.
• 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 the 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 Visit Quad Cities Board of Directors unanimously voted to support pursuing a TID concept on January 19, 2022. There has been enabling legislation that has been drafted in Iowa (winter 2025) but no action legislatively. We anticipate the next State of Iowa legislative cycle for these discussions to occur in 2026.