Calistoga City Council considers tourism improvement district expansion amid key presentation

The Calistoga City Council convened on December 11, 2024, to discuss the renewal of the Napa Valley Tourism Improvement District (TID), a significant initiative aimed at enhancing tourism and economic growth in the region. Assistant City Manager Salaya introduced the proposal, emphasizing its importance for local lodging and tourism.

The TID, originally established in 2011, is set to expire in June 2025. The renewal would impose a 2% assessment on guest lodging, with 74% allocated to the Napa Valley TID, 25% to local tourism initiatives, and 1% for Calistoga's administrative costs. This funding model has proven effective, generating substantial revenue for local governments and supporting community programs.

Lindsay Gallagher, President and CEO of Visit Napa Valley, presented data highlighting the district's success over the past 15 years. The TID has attracted approximately 3.7 million visitors annually, contributing around $2.5 billion to the local economy and generating $108 million in tax revenue for local jurisdictions. Notably, 66% of Calistoga's general fund budget is derived from transient occupancy taxes, underscoring the critical role of tourism in funding city services.

Gallagher noted that the TID has facilitated a collaborative marketing approach among Napa Valley towns, enhancing their visibility and appeal to potential visitors. The district's marketing efforts have been particularly vital in the post-pandemic recovery, with Calistoga's transient occupancy tax revenue doubling since before the pandemic.

The council's discussion included clarifications on the TID's structure and its implications for Calistoga. The council is expected to vote on granting consent to the Board of Supervisors for the inclusion of Calistoga in the renewed TID, which would solidify the city's participation in this vital economic initiative.

As the meeting progressed, council members expressed support for the renewal, recognizing its potential to bolster local tourism and sustain community services. The decision to renew the TID reflects a commitment to fostering economic growth and enhancing Calistoga's reputation as a premier destination in Napa Valley.