Trophy Club approves hotel tourism incentive program to boost overnight stays

The Town of Trophy Club approved a Tourism Incentive Program (TIP) July 28 to encourage overnight stays and support hotel-based tourism. The program will be funded from hotel-occupancy-tax (HOT) revenues and managed by the town's communications and tourism staff. Under the program, eligible hotels may receive up to $20,000 per year in group-room rebates and marketing incentives and up to $5,000 per year in reimbursement for directional wayfinding signage (reimbursed at 75 percent), for a total potential allocation of $25,000 per hotel annually. Hotels must be current on local taxes to participate and must submit reimbursement requests with supporting documentation. The town manager retains final authority on approvals and disputes. Town staff said the program aligns with Texas Tax Code §351 (statutory limitations on HOT spending) and that a $100,000 annual allocation from HOT revenues was proposed in next year's budget to seed the program. Staff will hold an annual executive tourism meeting with hotel partners and will administer reimbursements through the finance department. Council members discussed how the program might drive business for local restaurants and other businesses. Some council members expressed support for signage; others suggested prioritizing dining-card incentives to encourage visitors to eat locally. Raj Shudasama, representing the Aloft and Hampton properties in Trophy Club, told the council that comparable programs in other cities have been useful to generate heads and beds and community spending. After discussion the council voted to approve the TIP. One council member voted in opposition. Staff will finalize policy language and forms and notify eligible hotels when the new fiscal year begins.