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Tourism staff present program overview and propose a slightly lower 2026 budget amid forecasted headwinds
Summary
Planning staff briefed the committee on the county tourism program, its funding (5% room occupancy tax), 2024 visitor impact figures and a proposed 2.5% reduction in the 2026 tourism forecast; staff highlighted a downtown activation grant and an agreement to hold CVB funding flat for 2026.
Nick, staff lead in the Department of Planning & Sustainability, presented an overview of the county tourism program and the Strategic Tourism Planning Board’s 2026 budget recommendation on July 16, telling the committee the program remains an important economic diversifier for the county but that the 2026 forecast projects a 2.5% decline in room tax revenue.
Why it matters: Tompkins County’s tourism program is funded primarily by a 5% room occupancy tax and supports the Convention & Visitors Bureau (CVB), the Ithaca Downtown Conference Center, grants for annual programs (for example, community beautification, downtown ambassadors and hospitality workforce training), and contracts with cultural organizations. Tourism-generated spending and taxes are significant in the county’s economy, staff said.
Key figures and outlook: Nick told the committee the county’s visitor profile study reported roughly $29.4 million in tourism‑related tax revenue for the prior year and more than $380 million in direct visitor spending in 2024, producing a total economic impact approaching $430 million and supporting more than 3,200 jobs. Staff forecast a 2.5% drop in the 2026 room tax outlook driven by declines in international travel, reduced academic‑related events, and lower discretionary travel; staff said Canadian visitation had also declined.
Budget highlights and program changes: The STPB budget recommendation focuses the majority of funding on long‑term contracts (notably the CVB and conference center operations) and distributes the remainder across grant programs, annual programs, and operating support. Notable items in the 2026 proposal include a new Downtown Activation grant (run by the Downtown Ithaca Alliance) to support busking, street art and sidewalk showcases on the Commons and a request that the CVB hold its budget flat for 2026 (the CVB agreed provisionally to hold funding steady, absorbing a planned contract increase so other programs can remain funded if room tax revenue declines). Staff also noted the county keeps 10% of room tax revenue for administration and that a portion of planning staff time is billed to the room tax fund.
Committee reaction: Legislators congratulated staff and the CVB for tourism recognition and urged continued promotion. Committee members asked for more detail on the drivers of the 2026 forecast and whether contingency budget adjustments would be possible if second‑quarter receipts exceed expectations; staff said they would monitor collections and could propose budget adjustments if needed.
Next steps: Staff said a second‑quarter room tax report will be available at the next meeting, and the Strategic Tourism Planning Board will lead an update of the county strategic tourism plan later in the year. The committee also heard about short‑term rental law amendments in a separate agenda item that will affect registration and tax collection for that lodging category.
