At its meeting Wednesday night, Newport City Council announced its intention to establish a Tourism Improvement District, which would allow special assessments for lodging and provide funding for Discover Newport tourism marketing efforts.
The City Council voted to hold a public hearing on the petition to establish the district at its July 24 meeting. Business owners proposed to be subject to an assessment will be notified in writing 30 days prior to the hearing.
“In 2017, Discover Newport helped establish the Newport Tourism Marketing Management District and Tourism Marketing Management Authority pursuant to Chapter 45, Section 59 of the District Management Authorities Act, a general law of the State of Rhode Island. At that time, the district consisted of all lodging properties in Newport with 20 or more rooms,” said Councilman Lynn Underwood Seglier, who introduced the resolution.
In 2021, the district was updated and amended to include all lodging establishments in the city with 18 or more rooms. Because the district is due for renewal in 2024, Discover Newport and the Newport Tourism Marketing Authority have determined that it would be advantageous to establish a Tourism Improvement District pursuant to the provisions of Chapter 45, 59.1.
The new law allows local governments to establish tourism improvement districts that assess all businesses within their boundaries. The law applies to all towns and cities and has an initial term of up to 10 years, with renewable terms of up to 20 years.
“I thought all you did was bring in tourists, but it’s really opened my eyes to all that you do for our city,” said Councilman Mark Aramuri. “I want to recognize that Discover Newport, the brand for the city of Newport, has grown every year in the 16 years I’ve lived here.”
Discover Newport hosts trade shows and conferences in the city during the off-season when there are few tourists, and the organization sponsors local nonprofits, beach cleanups and transportation efforts to mitigate the impacts of tourism.
“We support a lot of local nonprofits, we do beach cleanups, all kinds of things, and I think some of you on city council can attest to that,” said Katherine Farrington with Discover Newport.
The current tourism marketing district taxes hotels with 18 or more rooms at $1.50 per night, generating about $350,000 in revenue annually. The new district would allow Discover Newport to raise the tax cap, which is important to remain competitive with destinations like Boston.
“Our direct competitor, the Boston Convention and Visitors Bureau, increased their budget from $8 million to $38 million,” says Discover Newport’s Tim Walsh, “So in a good year, this company is doing 350,000, maybe 400,000 in sales, which means it’s still a small amount to compete with our direct competitors.”
Councilman Alamri praised Discover Newport’s leadership in generating revenue streams and maximizing access to the waterfront. “It’s not easy, and this change certainly takes a lot of work. They’ve been very innovative in generating revenue streams, whether it’s these improvements or the cruise ship fee increase that will soon be passed by the Legislature,” he said.
Council voted unanimously to move forward with the Tourism Improvement District renewal process. The approval resolution will be placed on the minutes for consideration at the July 24 council meeting.
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