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Destination DC warns shifting tourism surtax will pull funding from marketing that drove post‑pandemic recovery
Summary
Destination DC executives told the Council the Tourism Recovery District (TRD) surtax — roughly $20–$26 million annually — funded expanded international offices, advertising and conventions work that helped bring visitation to record levels in 2024; they urged retaining the dedicated funding through 2027 and pursuing a long‑term solution rather
Destination DC President and CEO Elliot Ferguson and board chair Mead Atkinson testified June 11 that the mayor’s FY26 Budget Support Act proposal to redirect the 1% Tourism Recovery District (TRD) surtax away from Destination DC to the Deputy Mayor for Planning and Economic Development would undermine recent gains in visitor numbers, hotel occupancy and tax receipts and weaken Washington’s ability to compete for international visitors and conventions.
Why it matters: Destination DC is the city’s official destination marketing organization. It says marketing and sales investments funded by the TRD produced measurable increases in visitation and tax receipts that support city services. Reducing or diverting a dedicated revenue stream would shrink the city’s tourism promotion budget and, according to Destination DC, reduce return on investment for hotel and retail tax receipts that flow into the general fund.
What Destination DC said: Ferguson…
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