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Tourism fund proposes continued Experience Scottsdale support, local destination marketing and event funding
Summary
City staff presented the proposed fiscal year 2025–26 Tourism Development Fund budget, including a $14.8 million contract for Experience Scottsdale, a 5% city retained allocation for local marketing, event funding and transfers for CIP and debt service tied to tourism facilities.
City staff laid out the proposed Tourism Development Fund budget for fiscal year 2025–26 and described how bed‑tax revenue will be allocated between destination marketing and other tourism‑related uses.
Scott (finance) and Rachel Smetana, the city’s tourism and events director, told the Budget Review Commission that the fund is primarily supported by the transient occupancy (bed) tax and that the 2010 voter measure (Proposition 200) requires 50% of incremental bed‑tax revenue be used for destination marketing. Experience Scottsdale, the local destination marketing organization, receives the lion’s share of that destination marketing allocation; staff reported Experience Scottsdale’s program is contracted and measured annually and that the city retains a 5% destination marketing allocation for city‑led work since FY 2022–23.
Smetana said Experience Scottsdale’s work is intended to attract meetings, conventions and leisure visitors, and staff cited a historical performance ratio Experience Scottsdale provided showing substantial economic return for advertising dollars. The staff presentation listed a proposed Experience Scottsdale allocation of about $14.8 million for the year. Smetana said the city’s retained 5% of destination marketing will be used to promote Old Town Scottsdale and other local priorities after a public outreach process and additional strategy work with the city manager and new leadership.
The fund also includes programs to support tourism events, arts and cultural grants, facility debt service and transfers to capital projects. Smetana listed event funding streams that the Tourism Development Commission reviews, including new‑event seed funding, sports tournament support tied to room‑night guarantees, and a $250,000 baseline commitment to events including Tour de Scottsdale. The tourism fund also covers debt service linked to tourism assets (WestWorld, stadium) and an automatic 12% transfer to the general fund to help offset municipal costs associated with visitor volumes.
Commissioners asked about oversight and the city’s share of Experience Scottsdale funding. Smetana said Scottsdale provides the largest share of Experience Scottsdale’s revenue (staff stated roughly 70% of that organization’s funding in recent years) and outlined quarterly reporting, an annual financial participation agreement and performance standards as oversight mechanisms. No formal vote was taken at the meeting; staff said CIP requests paid from the tourism fund are reviewed by the Tourism Development Commission and council before any transfers are made.
