Austin to Boost Tourism with New District Amid Convention Center Changes

Austin to Boost Tourism with New District Amid Convention Center Changes

Austin is gearing up to enhance its appeal as a prime destination for business travel and tourism with the introduction of a new initiative called the Tourism Public Improvement District (TPID). This move is especially crucial as the city prepares for the demolition of its current convention center, a change that could impact the local tourism economy significantly.

Convention Center Changes on the Horizon

The Austin Convention Center is set for demolition in early 2024, with plans for a new facility not expected to be completed until 2029. As a result, the city is keen to minimize disruption to its tourism and hospitality sectors during this gap. Already, Austin has lost at least one major convention due to the upcoming changes, and local hospitality leaders are working diligently to attract large events to hotel ballrooms across the city instead.

Funding for the New District

The TPID aims to raise funds for marketing Austin more effectively to potential visitors by implementing a 2% fee on nightly hotel room rates. This fee will be applied to hotels with a minimum of 100 rooms and is projected to generate around $20 million** annually. This funding will assist Visit Austin, the city’s tourism office, in broadening its marketing efforts and reaching new markets.

Hotel Support for TPID

The Austin City Council approved the concept of the TPID in September 2023, but the plan requires backing from the local hotel industry to move forward. In order for the TPID to be implemented, support is needed from hotels that represent 60% of the assessed value of eligible hotels, as well as similar majority support for size and number of hotels. So far, 78% of hotels based on assessed value show support, with approvals in the mid-50% range for the other two categories.

Tom Noonan, CEO of Visit Austin, is optimistic that the necessary hotel support will be reached soon. He believes that with a few more approvals in the coming weeks, the TPID will gain the backing it needs from hotels to get moving.

Timeline for Implementation

If everything goes as hoped, the TPID could be operational and begin generating revenue by the start of 2025. This timing coincides with the closure of the convention center on April 1, 2024, making it vital for Visit Austin to have new funding sources in place well before the loss of significant convention traffic impacts the economy.

Impact on Austin’s Tourism

Austin is one of many cities that relies heavily on convention business, which is estimated to generate approximately 400,000 hotel room bookings annually for the city. With the TPID, Visit Austin will not only maintain, but also potentially grow its marketing reach. Once established, the new district would allow their marketing effort to expand from just two major seasonal campaigns each year to a year-round strategy aimed at tapping into various target markets. Noonan mentioned plans to reach out specifically to cities like Seattle, Miami, and Minneapolis, where Austin currently lacks a strong presence.

Future Goals

The goal of the TPID is to enhance Visit Austin’s ability to attract a diverse range of events, including more sporting competitions, smaller conventions, and business gatherings, to support the city’s economy during the convention center’s renovation phase. As Noonan stated, “The TPID is designed to do things that you’re not currently doing… so it allows Visit Austin to be in more places more often.”

As Austin steers through this transition period, the establishment of the TPID stands as a beacon of hope for maintaining the vitality of its tourism industry. With strategic planning and collaboration from the hotel industry, the city aims to ensure that it remains a sought-after destination for travelers and businesses alike during this pivotal time.


Author: HERE Austin

HERE Austin

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