Seattle Boosts Tourism with Increased Assessment Rate

Strategic Insights -

As part of a collaborative effort between the Office of Economic Development, the Mayor's Office, Seattle City Council, and Visit Seattle, the Seattle Tourism Improvement Area (STIA) assessment rate has been increased to fund marketing and promotional activities that draw tourists to the city. This change will allow for increased travel and tourism promotion for the city and region, supporting small and local businesses, and generating millions in revenue for STIA programs and services.

Key Takeaways:

  • The STIA assessment rate has been increased from $2 to $4 per occupied room per night, effective later this spring, to bolster promotional efforts for the balance of 2022 and beyond.
  • The increased assessment is projected to generate $10 million in fiscal year 2022, a potential $3 million increase from the previous rate.
  • The funds will support Visit Seattle's marketing efforts to promote leisure travel to the region, targeting key domestic source markets.
  • The STIA will also support comprehensive public relations efforts, helping position Seattle as a must-visit destination, and expand Visit Seattle's global footprint.
  • The increased STIA assessment is expected to benefit small businesses, including restaurants, hotels, and attractions, which employ tens of thousands of residents.
  • The passage of the STIA assessment is seen as a crucial step in Seattle's economic recovery from the pandemic.

Statistics:

  • 27.5 million visitors came to Seattle and King County in 2021, a 25% increase from 2020.
  • $5.6 billion was spent in the city and county from visitors in 2021, a 43.8% increase from 2020.
  • $550.5 million in state and local taxes were paid by visitors in 2021, an increase of 50.7% from 2020.
  • Tourism related jobs continued to recover in 2021, with over 58,000 local jobs in Seattle and King County.

Sources:

  • Office of the Mayor of Seattle
  • Seattle City Council
  • Visit Seattle
  • Seattle Times