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Richmond Region Tourism reports growth, cites hotel shortage near convention center
Summary
Richmond Region Tourism told the City Council its annual update, reporting rising tax revenues and visitor engagement, expanded sports tourism and workforce programs, and a shortfall of hotel rooms near the convention center that has cost convention business; the group said a Tourism Improvement District and ad campaigns have boosted demand.
Catherine O'Donnell, president and CEO of Richmond Region Tourism, told the Richmond City Council during an annual update that visitation and visitor spending across the region have increased, while a shortage of hotel rooms adjacent to the convention center has caused the region to lose some convention bids.
"It's a pleasure to be with you all again for our annual tourism update," O'Donnell said, describing efforts to market the Richmond Region and attract conventions, sports tournaments and leisure travelers. She said the region saw more than $39,000,000 in total tax revenue last fiscal year and that tourism supports about 29,000 jobs in the region with a median income of about $82,000.
O'Donnell said Richmond Region Tourism represents seven localities and uses a regional approach because visitors do not observe municipal boundaries. She highlighted four strong tourism sectors — family and friends visits, conventions, sports tourism and leisure travel — and said sports tourism accounts for roughly 71% of the business the organization recruits.
The agency cited several large events: GalaxyCon drew about 40,000 visits to the convention center last month, USA Boxing was hosted in December, and USA Taekwondo is expected to bring more than 1,000 participants to the convention center next month. O'Donnell said those events and year-round programming are central to keeping hotel room nights and local spending up.
On funding, O'Donnell reviewed the second year of the Tourism Improvement District (TID), a fee on hotel bills that creates a marketing fund governed by a Committee of Hotels and administered by Richmond Region Tourism. "This fee is put into a fund that is governed by the Committee of Hotels and executed by Richmond Region Tourism for marketing and advertising and sales to drive more hotel room nights," she said. The TID, she said, allows marketing year-round and supports recruitment incentives for events.
O'Donnell also described an advertising campaign funded initially with American Rescue Plan funds and continued afterward; the group reported a study showing a roughly 50% increase in perception of the Richmond Region among people who saw the campaign and a roughly 34% increase in the likelihood those viewers would travel to the region.
Danielle Fitzhugh, identified in the meeting as vice president and lead for workforce and foundation initiatives at Richmond Region Tourism, reviewed workforce investments and community programs. "We put money right back into our students with scholarships at both VCU and Virginia State University," Fitzhugh said, and described tourism-focused classes, CTE outreach and orientation programs that aim to develop hospitality career pipelines.
Fitzhugh said the organization's workforce and community outreach included scholarships, tourism classes for museum and attraction staff, and signature events such as the RVA sports awards and Black RVA community awards. She said the organization helped host more than 500 community residents in tourism education programs and engaged more than 800 new VCU students and families in a modified tourism orientation.
Council member Bridal asked whether the lack of hotel capacity near the convention center was causing lost convention opportunities. O'Donnell confirmed that the region has lost events to competing cities with substantially more hotel rooms within a half-mile of their convention centers, showing a slide comparing the number of hotels within short walking distance of those centers.
O'Donnell reiterated long-standing priorities in Richmond Region Tourism's master plan, including recruiting a headquarters hotel adjacent to the convention center, a regional inspiration campaign, sustainable investment and workforce development. She noted CarMax Park and other developments as part of future opportunity and said the group hopes to leverage events such as the Savannah Bananas' affiliated team and local sports tournaments as runways for larger attractions.
No formal council votes or motions were recorded on the tourism update itself; the presentation was an informational briefing and moved to questions from council members.
Looking ahead, O'Donnell said Richmond Region Tourism will continue to pursue a headquarters hotel near the convention center and to use TID funds to recruit events and advertise year-round.
