Melitas

Introduction

TIDs go by many names, including: tourism marketing district, hotel improvement district, and tourism business improvement district. TIDs are a type of business improvement district, a public-private partnership formed by the local government at the request and/or with the approval of businesses in the district. TID funds are usually managed by a nonprofit corporation, generally a convention and visitors bureau, hotel association, or similar destination marketing organization. TID services are specifically designed to increase the number of overnight visitors patronizing assessed businesses in the district. Typical TID services include marketing programs to raise awareness of the destination, sponsorship of special events that attract overnight visitors, and sales programs to bring in large-group business.

United States

California

Background

In California, tourism improvement districts are formed under the Property and Business Improvement District Law of 1994, or the Parking and Business Improvement Area Law of 1989. California districts are also subject to other laws designed to ensure approval by business owners paying the assessment and accountability by the managing body to those business owners.

In California, tourism improvement districts are formed with a majority of assessed businesses consenting and the local government’s approval. Funds raised are returned to a non-profit corporation which is under contract with the local government to manage those funds. Several accountability mechanisms ensure that funds are spent in accordance with a specifically defined district plan that has been approved by the businesses paying into the district. District plans generally include marketing and sales programs to promote the businesses paying the assessment. Funds cannot be spent on programs which don’t benefit the businesses paying the assessment, nor can they be diverted by the government for other programs – two main reasons for TID’s growing popularity among tourism-related businesses.

Districts

As of November 2010, there were fifty-four known local tourism improvement districts in California. Most districts encompass either a city or county, although some include multiple cities or a county and the cities within it. California’s first tourism improvement district was formed in West Hollywood in 1992; it’s most recent in Santa Barbara in September 2010. California’s tourism improvement districts range from small 5-hotel community districts to major cities with several hundred hotels; budgets range from $100,000 to over $30 million.

One of California’s most noticeable tourism improvement districts is the San Diego Tourism Marketing District. The district funded the hugely popular “Happy Happens” advertising campaign. The San Diego Tourism Marketing District funds many programs and events designed to bring overnight visitors to San Diego, including Comic Con and the Holiday Bowl.

Further Reading

External Links

• Tourism Improvement Districts - Information on Tourism Improvement Districts, tourism improvement district consultant.
• Five Steps to Forming a Tourism Business Improvement District - An overview of the tourism improvement district formation process.
• Cities Market Themselves Through Tourism Business Improvement Districts - Informational news article.
• Business Improvement Districts: Reshaping the Tourism Landscape: Strategy Implications for Your Destination - Information on how tourism improvement districts are affecting destination marketing programs in areas with and without tourism districts.
• TOT and a Tourism Marketing District - Editorial on the relationship between transient occupancy taxes and tourism marketing districts.
• San Diego Tourism Marketing District - Home page of the San Diego Tourism Marketing District, includes information on operations and programs.
• Napa Valley Tourism Improvement District - Official county information on the Napa Valley Tourism Improvement District.