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Discover Kalispell outlines FY25 results and FY26 tourism strategy as TBID revenue shows uncertainty
Summary
Discover Kalispell presented FY25 marketing outcomes, grant awards and FY26 priorities to the council — staff warned of downward pressure on room-night revenue, noted a 56% average annual occupancy in 2024, and described a tourism strategy stressing sports events, responsible-recreation messaging and use of conversational AI.
Discover Kalispell, the destination-marketing organization funded by bed tax and the Tourism Business Improvement District (TBID), presented a FY25 recap and FY26 work plan to the Kalispell City Council on June 16, reporting event grants, marketing reach and an emphasis on sports and responsible recreation for the coming year.
Nut graf: TBID leaders said FY25 included measurable successes but cautioned that FY26 revenue projections were uncertain because of lower Canadian visitation, growing lodging inventory and effects from Glacier National Park’s timed-entry reservation system; staff emphasized marketing to domestic and meeting-tourism segments, sports tourism development and stewardship initiatives.
Key FY25 results and FY26 priorities - FY25 outcomes: presenters reported they ran a ski-package campaign that “generated 2,112 room nights at 13 different TBID hotels between Dec. 20 and March 30,” awarded 10 event grants totaling more than $66,000 to local groups for sports tournaments and events, and said public relations efforts produced widespread reach with placements in outlets named during the presentation, including Forbes and the Los Angeles Times. (Transcript contains numeric formatting; staff-provided written materials will contain official figures.)
- Occupancy and trends: staff reported an average annual hotel occupancy rate for 2024 of 56% and said earnings/service patterns were influenced by increased lodging inventory, fewer Canadian visitors and Glacier National Park’s reservation system. Discover Kalispell said Q3 saw a large rise in 30+ day stays (which do not pay bed tax or TBID), reducing revenue even as room nights rose.
- FY26 priorities: marketing to meeting planners and sports organizers, expanding sports tourism (including events such as the Big Sky Battle 3v3 basketball tournament), completing destination-development platforms, stewarding visitor behavior through responsible-recreation messaging and continuing use of conversational AI tools drawn from the organization’s own site content.
- Financial notes and risks: staff said TBID FY26 projected revenue is slightly under FY25 and cited concerns about the upcoming summer season and wildfire risk. They noted a recent TVID rate change to $4/night effective Aug. 1 and explained revenue comparisons to allow for the mid-year rate shift. Presenters emphasized reinvesting visitor-generated taxes into local projects and workforce development, and they invited councilors to the Home2 Suites ribbon cutting on June 26.
What council heard: Councilors asked clarifying questions about the spike in 30+ day stays (staff indicated construction and long-term stays by new residents or workers were likely contributors) and about the geographic scope of credit-card spending (staff said the data cited was for the Kalispell 59901 ZIP code). Discover Kalispell also solicited projects for its community development grant program (examples included murals, bike racks, trail signage and other visitor-facing amenities).
Next steps: Discover Kalispell will continue promotions, seek grant proposals for community development projects and advance sports and meeting sales initiatives. Council did not take a formal vote on the TBID presentation; staff said the organization is funded by bed tax and TBID assessments and works in partnership with the chamber.
