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Panel considers statewide tourism assessment to create industry‑funded marketing account
Summary
Substitute HB 23‑25 would authorize a tourism self‑supported assessment (TAP) administered by the Washington Tourism Marketing Authority, create a ratepayer oversight board and require a weighted industry referendum before collections; sponsors and industry groups described potential for a $25 million annual program and large returns, while members raised equity and governance questions.
Committee staff outlined substitute HB 23‑25, which would direct the Washington Tourism Marketing Authority to develop and administer a tourism assessment program (TAP) governed by a ratepayer oversight board (ROB). Under the bill’s framework, the authority would annually levy and collect a percentage assessment on participating businesses’ gross revenue in defined tourism sectors; affected businesses would vote in a weighted referendum before any collections begin.
Martha Whaling (staff) said the program would apply to seven categories of tourism businesses and that the ROB must conduct a referendum among businesses that would be affected, with votes weighted by the amount each business would pay. The substitute creates a limited public‑records exemption for financial and commercial information submitted to the authority and ROB, but does not exempt aggregated summaries.
Sponsor Rep. Dave Paul (10th LD) described the measure as a voluntary, industry‑driven model modeled on successful programs elsewhere. "This is a voluntary program," Paul said, arguing the assessment would allow Washington to compete nationally and internationally for visitors. Fiscal staff said the Department of Commerce could receive reimbursements from a TAP account to support startup work, with an estimated $256,000 to the general fund in later biennia tied to reimbursements and administration.
Industry witnesses — including State of Washington Tourism, the Washington Hospitality Association, the Washington Wine Institute and craft brewers — spoke in favor, saying an industry assessment could produce sustained funding (models cited a $25 million annual program) and substantial returns to the state’s visitor economy. Representatives noted the program structure would require industries to opt in and approve the assessment through the ROB and referendum process.
Some members pressed for stronger protections and clearer mechanisms to ensure that communities disproportionately affected by tourism (including neighborhoods in large cities) would have access to destination development grants and a voice in board composition. Staff and supporters said the bill’s governance provisions envision geographic diversity on the WTMA board and destination development programming to direct resources to communities’ local priorities.
The committee did not vote on SHB 23‑25 during this session.
