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Tourism Advisory Committee presents annual report; bed tax funding and marketing-management tradeoffs highlighted
Summary
At the June 10, 2025 Prescott City Council study session, the Tourism Advisory Committee (TAC) presented its annual report, reviewed bed-tax-funded programs and grants, and urged discussion about balancing destination marketing with destination management as the city plans future spending and a summer financial workshop.
At a Prescott City Council study session on June 10, 2025, members of the Tourism Advisory Committee presented their annual report, reviewed how transient-occupancy (bed) tax dollars are used, and discussed funding tradeoffs between marketing and destination management.
The presentation was given by Dennis Gallagher (committee member) with comments from Margo Christiansen, chair of the Tourism Advisory Committee, and Matt Broussard, vice chair. John Heine, the city’s community outreach director, introduced the committee members to council. “The tourism advisory committee was formed on August 29, 2017 … It acts in an advisory capacity only,” Gallagher said, describing the committee’s role and a five-year strategic plan the committee uses to guide recommendations.
Key facts and figures presented: TAC said the bed tax collection rate is 3 percent and that anticipated collections for the coming fiscal year are about $1.6 million. The committee cited a 2022 estimate of $252 million in visitor spending across lodging, food and retail and said visitor purchases supported roughly 3,900 jobs and generated about $4 million in city sales tax. The committee also reported a 45.5% social-media engagement increase, 168 media features that they estimated produced large impressions, and that tourism-supported programs include concerts, the Whiskey Off-Road, the courthouse lighting and the world’s oldest rodeo.
The committee described its grant program: TAC administers annual tourism grants that nonprofit applicants use to support events and attractions; awards are reviewed by the committee and the presentation noted applicants may receive up to $5,000. Staff clarified these awards are contract-based and not “gifts.” TAC members and staff emphasized the distinction between destination marketing (advertising to attract visitors) and destination management (operational costs, event logistics and infrastructure that serve visitors and residents).
Council discussion focused on funding choices. Council members asked whether parking-garage maintenance and some park costs should be funded from bed tax transfers; staff said approximately $171,000 in internal operating transfers from bed-tax funds currently flow to the general fund and that parking-garage maintenance is among those charges. Margo Christiansen and tourism staff said some expenditures currently funded from bed-tax revenue fall into destination management rather than direct marketing and that the city must decide how to balance those uses.
Next steps and staff direction: tourism staff said TAC will present detailed grant contracts for council approval at the July meeting (staff noted 34 contracts are scheduled for council consideration). Staff also said a financial workshop is being planned this summer to review revenue opportunities, marketing-investment scenarios and potential changes to how bed tax is allocated.
No formal council vote occurred during the presentation; the session was informational and preparatory to the July contract approvals.
