Destination Cleveland says bed tax and convention-center bookings fueled tourism rebound; reports $20.5M budget and $350M in 2023 tax revenue

David Gilbert, president and chief executive of Destination Cleveland, told the Cuyahoga County Committee of the Whole on April 22 that the organization’s bed-tax-funded operations generated measurable economic returns for the county and that marketing and neighborhood programming are central to future growth.

Gilbert said Destination Cleveland’s budget from the county-collected bed tax is about $20,500,000 for the current year and that, using 2023 data, visitor activity generated roughly $350,000,000 in direct county tax revenue. “This is an economic impact,” Gilbert said. He added that bookings tied to the renovated convention center have already produced approximately $3,100,000 in direct county taxes and that the county’s visitor economy supports about 7% of all jobs in Cuyahoga County.

The presentation, introduced by John Penny, board chair of Destination Cleveland, emphasized three tactical priorities: attracting visitors, managing visitor experience and using the Destination Cleveland brand to support broader economic-development goals. Gilbert said the organization is funded through the hotel occupancy (bed) tax; Cuyahoga County’s portion is 6.5 percent and the City of Cleveland’s portion is 3 percent. Gilbert described Destination Cleveland as a private 501(c)(6) that receives its funding via county administration of the tax.

Gilbert outlined measures the organization uses to push visitor dollars into neighborhoods beyond downtown, including paid neighborhood “experiences” marketed to convention attendees, a staff position devoted to neighborhood development and a set of visitor “passports” that point attendees to local businesses. He said the organization has invested in recruiting travel writers, digital advertising focused on millennials and Gen Z, and partnerships with regional economic-development groups to support talent attraction.

During council questions, Gilbert acknowledged national and international travel pressures but said Cleveland is less exposed than international gateway cities and that the county is monitoring particular federal-event bookings. “Thankfully, right now, there's only been 1 cancellation,” he said when asked about a veterans-related convention; he added the organization was tracking other federal-related meetings for possible reduced attendance.

Gilbert and Penny also described recent private and public investment affecting tourism: an estimated $300 million to $350 million in hotel investment countywide, a reported increase in revenue per available room and widespread growth in citywide events and future bookings. Penny called 2024 “probably the most successful year” from a hospitality and tourism standpoint and credited the county’s investment in the convention center expansion for supporting that growth.

Council members asked about equity in marketing and talent recruitment. Gilbert said Destination Cleveland intentionally showcases diverse local voices in its content and has run campaigns to represent a broad mix of residents; he said the organization partnered with the Cleveland Development Corporation and council members to identify neighborhood visitor opportunities and hired staff to help neighborhoods build marketable experiences.

The presentation closed with thanks to council for its support; no formal actions or votes related to Destination Cleveland’s funding were taken at the meeting.