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Town council approves three‑year DMO contract with Hilton Head Island/Bluffton Chamber, adds reporting and transparency requirements

Town Council of Hilton Head Island · December 18, 2025

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Summary

Council approved a three‑year contract (with up to two years’ renewal) naming the Hilton Head Island/Bluffton Chamber as the town’s destination marketing organization and added reporting, accounting and public‑presentation requirements; a motion to strike a clause allowing the DMO to request additional ATAX grants failed.

The Town Council on Dec. 18 approved a resolution authorizing execution of a contract with the Hilton Head Island/Bluffton Chamber of Commerce to serve as the town’s designated destination marketing organization (DMO). Assistant Town Manager Angie Stone told council state law requires naming a DMO to receive and oversee a portion of transient‑occupancy (accommodation) tax revenue and described the selection process and contract negotiations.

Stone said the Chamber was selected through a request‑for‑qualifications process and negotiations produced a contract focused on clarifying roles, improving financial transparency and refining performance metrics. Key contract terms highlighted by staff include a three‑year term with an option to renew for up to two additional years subject to council approval; requirements for an annual accounting report that includes invoices and receipts and a full accounting of the 30% DMO fund; public presentation requirements and use of the tourism‑expenditure review committee budget form to improve comparability and transparency.

Councilmembers praised added transparency and core‑value alignment (ecotourism, arts and culture, history, wellness and recreation) but debated Article 8, which permits the DMO to request additional accommodation‑tax grant funds beyond the statutory 30% allocation. Councilmember Bryson reviewed past DMO revenue figures (2023 nearly $4.0 million; 2024 $4,141,096; 2025 forecast $3,835,832) and moved to strike Article 8; that motion failed. Supporters of retaining the Article said an application does not guarantee award, town council approval is required for additional grants, and the language preserves flexibility for extraordinary circumstances such as hurricane response.

The motion to approve the DMO contract was made by Mister Alfred and seconded by Miss Becker. The council approved the resolution by voice vote (recorded as 7–0).