During Wednesday night’s meeting, the Newport City Council expressed its intent to form a Tourism Improvement District. The district allows for a special assessment of lodging properties to fund Discover Newport’s tourism marketing efforts.
The council voted to hold a public hearing on the petition to form the district at its July 24 meeting. Owners of businesses proposed to be subject to the assessment will receive 30 days’ written notice of the public hearing.
“In 2017, Discover Newport did assist pursuant to District Management Authorities act chapter 45 59, general laws of Rhode Island, in the creation of the Newport Tourism Marketing Management District and the Tourism Marketing Management Authority, at which time consisted of all lodging properties with 20 rooms or more in Newport,” said Councilor Lynn Underwood Ceglie, who brought forward the resolution.
In 2021, the district was renewed and amended to include all lodging properties with 18 rooms or more in the city. With the district now up for renewal in 2024, Discover Newport and the Newport Tourism Marketing Management Authority have determined that it would be more favorable to create a tourism improvement district pursuant to the provisions of Chapter 45 59.1.
The new law allows municipalities to create tourism improvement districts that assess any business located within the district’s boundaries. It is available to all towns and cities with an initial term of a maximum of 10 years and 20 years upon renewal.
“I used to think all you folks did was bring tourists in. And I really had my eyes opened on the full suite of things that you do for this city,” said Councilor Mark Aramli. “And I want to recognize that Discover Newport, the brand of the city of Newport, has escalated every year in the 16 years that I’ve lived here.”
Discover Newport brings trade shows and conferences to the city during the shoulder season when most tourists are gone. The organization also sponsors local nonprofits, beach cleanups, and transportation initiatives to mitigate the effects of tourism.
“We sponsor many of our local nonprofits. We do beach cleanups, you name it. I think several of you on the council can attest to that,” said Discover Newport’s Kathryn Farrington.
The current tourism marketing district produces about $350,000 a year, with a $1.50 per night assessment on hotels with over 18 rooms. The new district will allow Discover Newport to raise the cap on that assessment, which is important to stay competitive with destinations like Boston.
“The Boston Visitors Bureau, which is a direct competitor of ours, has gone from a budget of 8 million to 38 million,” said Discover Newport’s Tim Walsh. “So where this is producing 350, maybe 400,000 on a good year. I mean, it’s still a small amount to compete with a direct competitor.”
Councilor Aramli commended Discover Newport for its leadership in generating revenue sources and maximizing access to the waterfront. “That’s not easy. That change is certainly a lot of work. You’ve been very innovative on generating revenue sources, whether it is this improvement or the soon to be, hopefully passed by the General Assembly increase in the cruise ship fee,” he said.
The council voted unanimously to move forward with the renewal process for the Tourism Improvement District. The authorizing resolution will be placed on the docket for consideration by the council at its July 24 meeting.
Resolution
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