Pa. counties need authority to boost tourism
Even in a stridently partisan state legislature, authorizing county Tourism Improvement Districts (TIDs) should be an easy win for both parties. And the sooner the better: County tourism agencies, including Allegheny County’s VisitPittsburgh, could use the cash to sustain an ongoing recovery from the COVID travel collapse.
VisitPittsburgh reports that visitors to Allegheny County spent more than $6.5 billion in 2019, accounting for more than $400 million in state and local tax revenue. It also reports that Pittsburgh’s post-COVID tourism recovery is outpacing its rivals.
From all available evidence, including from more than 200 regions nationwide with TIDs, local governments and businesses in this area will get a solid return-on-investment from such a program. It also has the enthusiastic support of the local hotel industry.
Native Pittsburghers tend not to view southwest Pennsylvania as a compelling tourist destination: Familiarity blinds them to the region’s appeal. The city lacks a signature asset — such as Nashville’s music or Louisville’s whiskey — but it contains a variety of attractions. VisitPittsburgh reports that arts and culture, typified by the unique and world-class Warhol Museum, top the list, with sports and outdoors activities rounding out the top three.
But right now, VisitPittsburgh’s funding ranks near the bottom of comparable cities, with roughly $10 million a year. Compare that to $15 million for Ohio competitors Cleveland and Columbus, and more than $20 million for Nashville and Louisville, which just approved a TID.
A Tourism Improvement District allows a local government to assess a certain percent of gross hotel room revenues, direct from the hotels themselves, for marketing the region. In Allegheny County, a coalition of hoteliers is proposing a 2% assessment, which would raise about $9 million annually. The fund would be separate from VisitPittsburgh’s other funds. A board of hoteliers would govern the fund, which the tourism agency would manage and distribute.
To move forward, VisitPittsburgh and the local hotel industry need the state to authorize the county to set up a TID. Now, only cities in Pennsylvania can establish TIDs, giving the consolidated city-county of Philadelphia an advantage. It passed a 0.75% assessment in 2017, which so successful it was doubled upon reauthorization last year.
Last year, we were skeptical about another funding mechanism for VisitPittsburgh — a straight 2% increase in the county hotel room fee — and endorsed state Sen. Wayne Fontana’s call for an audit of the agency. VisitPittsburgh now reports that its work with the Allegheny County Auditor is nearly complete. That the agency welcomed the exam suggests it will receive a clean bill of fiscal health.
There are no good reasons for Harrisburg to deny counties the right to authorize Tourism Improvement Districts. The legislature should quickly pass enabling legislation so Pittsburgh, and other regions across the commonwealth, aren’t left behind.
–Pittsburgh Post-Gazette
