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Airport staff discuss hotel‑tax increase and marketing push to attract new airline service
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Summary
Airport staff and board members discussed plans to seek a 1% hotel‑occupancy tax increase to create a fund for airline incentives and a marketing campaign; staff said the measure would require broad hotelier support and likely a referendum, and that public trust will be central to success.
Airport staff described a strategy to encourage new airline service by proposing a 1% hotel‑occupancy tax increase to fund airline incentives such as minimum‑revenue guarantees. The plan would require coordination with hoteliers, a campaign to build public support and, ultimately, a voter referendum.
An airport staff member said the idea is to create a dedicated fund so the city can offer airlines some financial certainty during the first two years of a new route. He said: “It is not as easy as... just meet with Southwest... It doesn't work like that. So obviously, we're building that relationship... but at the end of the day, it comes down to a financial decision.” Staff reported hoteliers at a recent meeting were receptive to the concept of a 1% increase, but noted not all relevant hotel stakeholders were present and that a formal referendum would be required.
Board members emphasized the need to build public trust and a marketing campaign that positions the initiative as paid by visitors rather than local taxpayers. One board member suggested engaging a well‑known community spokesperson to lead outreach. Staff indicated they are aiming for a November ballot but acknowledged prior efforts had failed and public trust is an obstacle.
Separately, staff reported airline and routing developments that may improve connectivity: a recent commercial alliance allows passengers to book Laredo–Monterrey and connect onward to Cancun via Viva Aerobus through Monterrey’s network. Staff said that partnership opens hundreds of onward connections for Laredo travelers and gives local marketers material to promote international connections.
Why it matters: New air service can expand travel options, boost tourism and generate economic activity. The proposed hotel‑tax approach shifts the cost to visitors but requires local agreement and a successful public campaign.
Next steps: staff will continue outreach to hoteliers, refine the proposed funding mechanism, work on community engagement and report back to the board. No formal levy or ballot measure was adopted at this meeting.
