Bill > HB2873

This bill establishes a legal framework for creating Tourism Improvement Areas (TIAs) in Arizona municipalities and counties, allowing lodging businesses to collectively fund tourism promotion and marketing efforts. The legislation enables lodging business owners to petition their local government to create a TIA, which would assess a fee (up to $5 or 5% per room per night) on participating lodging businesses to support tourism-related activities. To form a TIA, at least 67% of lodging business owners within the proposed area must sign a petition, and the proposed plan must include details such as geographic boundaries, assessment rates, and planned activities. The TIA would be managed by an owners' board composed primarily of lodging business owners and would contract with a destination marketing organization to implement tourism promotion strategies. Each TIA would have an initial term of up to ten years, with the ability to renew, and would require an annual report detailing activities and expenditures. The bill aims to help local tourism businesses compete more effectively by providing additional resources for marketing and promotional efforts, with built-in mechanisms for transparency, periodic review, and potential dissolution if the majority of lodging business owners desire. The legislation emphasizes that these tourism improvement activities are meant to supplement, not replace, existing governmental services.

Business and Industry

https://apps.azleg.gov/BillStatus/BillOverview/83345