The Newport City Council tabled a vote on establishing a new Tourism Improvement District Wednesday night after a debate over the proposal’s merits and the city’s role in collecting fees for the hospitality industry.
The proposed district would allow hotels with 18 or more rooms to collect a $1.50 per night fee from guests to fund marketing efforts, primarily aimed at attracting visitors during slower seasons. The fee could potentially increase to $5 per night over time.
The proposal requires city approval under state law. If approved, the city would collect the funds, retaining a 3% processing fee.
This is the City Council’s second time holding a lengthy discussion on this item, continuing it when it appeared before them on July 24.
Councilor David Carlin expressed concerns about the city’s involvement and potential liability and questioned the necessity of city participation, suggesting the hotels could organize independently.
Councilor Lynn Underwood Ceglie, who serves as the City Council liaison on the current tourism marketing board, defended the proposal.
“Why are we taking away the ability to allow them to raise marketing funds through tourism? It makes no sense,” Ceglie said. “We have an obligation to our small businesses, to our restaurants, to people who struggle in the off-season.”
Councilor Mark Aramli countered that the hospitality industry should contribute more to city coffers, given tourism’s impacts.
“Some of us believe that with 4 million visitors a year, having the tourism industry contribute 6% of the operating budget of this city is a broken equation,” Aramli said.
“There is a sense that we are reaching the tipping point of over-tourism,” Aramli added. “I can’t run an errand to CVS on our peak weekends.”
Questions were raised about potential conflicts of interest in having a city councilor serve or be involved on the tourism district’s board. Mayor Xay and Councilor Ceglie disagreed on whether the current proposal specifies including a council member, though they both agreed this could be changed.
After more than an hour of debate, Councilor Carlin moved to table the item. The motion passed 4-2, with Ceglie and Councilor Jeanne-Marie Napolitano opposed. Councilor Holder recused himself from the discussion and vote.
The tabling delays any decision until proposed changes can be incorporated, including potentially increasing the city’s administrative fee and removing the council seat from the district’s board. The motion to table allows the City Council to bring back the item in the future.
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