Editor’s note: This story originally ran on VeloCityOKC.com.
The Chamber is supporting an effort to increase the City’s hotel tax to provide more funds for the promotion of Oklahoma City as a visitor destination. The Oklahoma City Council set the vote for August 27.
“The improvements made in this community over the past 30 years have created a dynamic destination for meetings and tourism,” said Christy Gillenwater, president & CEO of the Chamber. “Unfortunately, the money available to really share that story with the world has not grown, and that hampers our ability to tell the story and sell what we have to offer.”
The tax is only charged to people who stay overnight in a hotel or rent a home-sharing property in the City of Oklahoma City. The current tax is 5.5%, and the increase would take the total tax to 9.25%. The increase would bring in an additional $11.6 million annually, with 75% of the increase going toward direct funding to promote and/or foster convention and tourism development. The remainder of the increase would go toward event sponsorship(13.3%), a vital tool for attracting events, OKC Fairgrounds improvements (6.7%) and OKC Convention Center improvements (5%).
“The amount provided for promotional purposes hasn’t been increased since the tax was instituted in 1972,” explained Zac Craig, president of Visit OKC. “This destination has changed so dramatically. Our competitive cities budgets are more than double what we have to spend, so for us to really be able to compete for business and sell this city the way it deserves to be sold, this increase is vital.”
Competitive cities budgets are significantly higher, but so are their hotel tax rates. Oklahoma City, at 14.13% currently, is significantly lower now that competitive and surrounding cities such as Tulsa (16.52%), Austin (17%), Kansas City (18.35%) and Fort Worth (19%). At the new rate of 17.88%, Oklahoma City will still be competitive for meetings and events.
The additional funding for tourism and meetings promotion and development would attract more visitors by scaling marketing efforts to attract meetings and conventions, large events, and leisure travelers. “We know that today’s tourist is potentially tomorrow’s resident or business owner,” said Gillenwater. “It is so important for our community’s growth to create a stronger tourism brand – it grows our hospitality industry and employment, and it also importantly has a positive impact on our business development efforts and goals of attracting critical workforce.”
The vote will be held on August 27 and registered voters within the City of Oklahoma City are eligible to vote.
The vision behind the proposed tax increase is to assist in the growth and development of Oklahoma City, ensuring the momentum built over the past three decades continues. By leveraging tax from tourism, the city aims to boost its economy and enhance its appeal as a premier destination. Visitors will contribute to building a better city, as funds generated from the tax will be reinvested into critical infrastructure and promotional efforts – all without burdening local residents.
The city’s overall plan to maximize destination infrastructure, including the OKC Convention Center, RIVERSPORT, Will Rogers World Airport and more will enable Oklahoma City to attract more direct flights, high profile events and major conventions. The city is also preparing for a range of upcoming projects, including investments from MAPS 4, the new arena, OKANA Resort and OG&E Coliseum. These projects are expected to draw significant interest and visitors, further necessitating the need for more promotional efforts.
Our city aims to compete on a higher level playing field for major events like the All-Star Games, NCAA and SEC bids, festivals and more. This tax increase is a way to secure these important events and ensure Oklahoma City meets and exceeds expectations as a top-tier destination. Ultimately, the proposed tax increase is designed to strengthen Oklahoma City’s brand to tell our story, boost the local hospitality industry to a level playing field and support economic development goals. By attracting more visitors, the city can continue its positive growth cycle that benefits residents, businesses and the community.
