Tourism Improvement District

A TID is a funding mechanism used to support tourism promotion, event attraction, and destination development. It is funded through a small assessment (not a tax) on lodging stays within a designated geographic area. The funds generated are reinvested directly into services and efforts that benefit properties within the district, primarily by increasing hotel demand, attracting visitors, and enhancing the overall appeal of the destination. There are currently more than 220 Tourism Improvement Districts operating nationwide. 

Greater Des Moines is at risk of falling behind when it comes to attracting major events that impact our region. These include major conventions and sporting events, from NCAA tournaments and National Speech and Debate competitions to hundreds of other meetings and events each week. Establishing a TID creates sustainable funding that allows Greater Des Moines to remain competitive in attracting events and strengthening our sales and marketing efforts.  

The tourism and events industry is competitive, and cities and states across the country recognize the impact visitors have on their communities. Many are placing greater emphasis on events by offering bid incentives and sponsorships, making strategic investments to expand their ability to host events, and finding ways to get a competitive edge.  

A Tourism Improvement District would provide the region with a locally controlled funding source that allows us to attract and secure more events and elevate our presence regionally and nationally.  

Tourism is an essential economic engine for our community. Visitor spending fuels local businesses, supports jobs, and generates tax revenue that helps pay for services like public safety and infrastructure. Investing in tourism is an investment in Greater Des Moines.

TID funds would be used in a variety of ways, always with the goal of attracting new businesses to our community. These efforts could include bid enhancements and incentives, elevating our national presence through trade shows, sales and marketing efforts, media and public relations initiatives, and other activities that attract visitors and enhance the community.

Enabling state legislation for a TID is currently proposed. Once passed, the Greater Des Moines community will work together to develop a plan that reflects local needs and priorities. While details would be finalized through that process, the proposed structure would likely include a term of five years and a 2-3% assessment on hotel room stays in the Greater Des Moines area.  

This is an assessment, not a tax. It requires a demonstrated benefit to those paying into the district, meaning participating hotels must directly benefit from the use of the funds.  

A TID does not replace existing hotel/motel revenue. Instead, it serves as a supplemental, private-sector solution dedicated solely to tourism promotion and event attraction.  

The TID would be governed by participating properties. A board or committee made up of these stakeholders would oversee how funds are collected and invested, ensuring transparency, accountability, and alignment with the district’s goals.  

Check out these helpful case studies from Civitas, a national leader in Tourism Development District consulting and management.