(The Center Square) – Snohomish County’s tourism fund is expected to see expenditures surpass collected lodging tax revenue in 2024.
According to the proposed 2024 Snohomish County Tourism Promotion Area Business Plan, expenditures are set at approximately $3.3 million, with anticipated revenue set at $2.4 million.
Out of the $3.3 million in expenditures, the majority of funds – $2 million – would go toward the county’s Tourism Promotion Area grant projects. The 2024 grants are to be submitted, approved and executed by the TPA Advisory Board within the calendar year.
The tourism promotion area imposes a $2 per night charge on lodging businesses that have 40 or more lodging units.
The county’s lodging charge allows revenue collected from the tourism promotion area to be used for general promotion of tourism in Snohomish County. Revenue can also go toward the marketing of conventions and trade shows to boost the local lodging business, as well as marketing the county to the travel industry and recruiting sporting events to the region.
The proposed Snohomish County Tourism Promotion Area Business Plan would allocate $707,260 to the Snohomish County Sports Commission, which is responsible for the promotion of sports events in the region. According to the commission, it partnered with local and national event organizers to put on more than 75 events in 2023.
At least seven events under the banner of the sports commission are set to take place in 2024.
In 2020, the TPA, Snohomish County Sports Commission and the Snohomish County Lodging Association successfully approved and implemented an additional $1 fee with funds held aside in a fund for future tourism promotion projects. According to the 2024 plan, $417,277 is being dedicated to potential projects from this fund.
Possible 2024 projects include in-market events in regions such as Asia and Europe, domestic trade show events, and hotel image and video asset production.
The remaining $141,193 would go toward administration costs.
Expenditures surpassing generated revenue means the TPA will start to dip into its ending fund balance of $6.3 million. Trends from the legislation show the ending balance projected to decrease to a total of $3 million by 2029, despite tourism promotion area revenue expected to grow 3% each year.
The legislation will go to the county’s Finance, Budget, and Administration Committee for its approval. The committee’s next meeting is set for Jan. 9.
