A petition seeking changes to the structure of the city’s tourist district and potentially increasing assessment-based revenues is scheduled for a public hearing in July.
The “long-term” proposal passed its first reading at a Newport City Council meeting on June 12, when councillors unanimously gave their approval to go ahead. The public, including hospitality businesses which would be included in the new district, will have the opportunity to have their say at City Hall next month.
“These funds are [participating] “We’re working to expand our lodging options,” said Katherine Farrington, vice president of marketing for Discover Newport.
“This gives Discover Newport more flexibility,” Council Vice Chair Lynn Segley said.
The proposal is scheduled for a public hearing on July 24. Lodging businesses proposed to be part of the new district will be notified in advance of the public hearing. The proposal must ultimately be passed by a City Council resolution and vote.
Discover Newport is a non-profit destination management organization that promotes tourism for the City of Newport and eight surrounding municipalities in Newport and Bristol counties, including Middletown, Portsmouth, Barrington, Bristol, Jamestown, Little Compton, Tiverton and Warren.
In 2017, the nonprofit successfully created an independent Tourism Marketing District, one of three recognized in the state, that included all of Newport’s lodging facilities (approximately 20 local hotels) that met the required number of rooms.
But state law has been changed to allow any municipality to establish a Tourism Improvement District that would assess any business within the district’s boundaries, without any caps. Supporters of the change say that if approved, it would add needed district planning and stable funding, and also help Discover Newport with logistics and workflow.
Therefore, Discover Newport recently chose not to renew its term under the current structure and instead petitioned the city to establish a new Newport Tourism Marketing District. It is envisioned that the same hotels included in the current district would be members of the new district. Discover Newport’s individual efforts to promote tourism in the other eight area municipalities would continue unchanged.
The resulting funds, estimated at $350,000 to $400,000 per year, will be allocated to Discover Newport and spent on promoting the destination, including marketing hotels and other tourism strategies.
“This is a good way [lodging facilities] “There are many different ways to market your property,” Selye says, “and many different ways to advertise your business. The target is usually the off-season.”
“This isn’t just about raising money,” City Council Member Jeanne Marie Napolitano said, “It’s about improving the areas around larger hotels and facilities to enhance the visitor experience. It can be small things like increased trash collection or landscaping work to make an area more appealing.”
In the new districts, the tax would be determined as a percentage or dollar fee per room, with a committee made up of representatives from participating lodging facilities deciding the rate.
Hotels would join the new district on initial leases of up to 10 years, with 20-year terms upon renewal, which supporters say is a better option than the current system, which currently charges hotels with 18 or more rooms a fee of $1.50 per night on top of guest rates.
Under the new system, the city would receive a “pass-through” fee of 3 percent of tax revenue for administrative work, which would be separate and independent of state and local hotel taxes.
The lack of a tax cap is just one reason why proponents are racing to make the changes, but it’s a big one: The Greater Boston Convention and Visitors Bureau (Meet Boston), the Bay Area state capital’s equivalent of Discover Newport and a direct competitor, recently received a $30 million budget increase.
“Travel is a highly competitive industry,” says Evan Smith, CEO of Discover Newport. “There are many destinations in the U.S. and around the world that are increasing tourism funding. [change] It’s about staying competitive.”
Councilwoman Angela Lima, who is concerned about efforts to attract more tourists to Newport, noting the city gets very crowded in the summer and spring, said revenue from the reforms should also be used to fund tourism research and analysis.
“As a resident, I personally don’t think Newport has a problem attracting tourists,” she said. “I do think about the concept of overtourism.”
Discover Newport, Cherrier and City Councilman Mark Alamri said the nonprofit has focused on marketing the city to tourists in recent years during the off-season to avoid exacerbating the problems Lima cited.
“I’ve lived here for 16 years and Newport’s brand has grown every year, as has tourism,” Alamri said, “but one of the things Discover Newport has done is bring exhibitions, conventions and business meetings to the city. They come when the tourists have left – in November, December and January, when the hotels are empty.”
“That’s why we also try to help mitigate the impacts of tourism,” Farrington said, talking about the group’s efforts to reduce vehicle use, promote and sponsor public transport, and even beach clean-ups.
