Chattanooga Tourism asks Hamilton County for $10.08 million, cites $1.8 billion visitor impact

The Chattanooga Tourism Company asked Hamilton County commissioners for $10,084,977 in county support for the coming budget cycle, Interim CEO Susan Harris told the commission. Harris said the request represents 85% of what the company projects in county lodging-tax collections and reflects a 51% increase in proposed sales and marketing spending.

Harris said the tourism office welcomed 11,100,000 visitors in 2024 and that visitor spending produced about $1.8 billion in estimated local economic impact, citing state-validated research. "That $73,000,000 in local taxes helps households, Hamilton County taxpayers, people like me, people like you, save over $1,200 in annual taxes a year," Harris said, summarizing how the office frames public investment.

The request is a specific dollar figure calculated as 85% of projected collections; Harris said it is 2.7% lower than the organization’s ask last year but a 13.7% increase over its prior allocation. The tourism company’s total budget, Harris said, is about $14 million, with the organization asking the city for roughly $3.5 million and the county for the $10.08 million figure.

Why it matters: Harris framed the ask around three questions requested by commissioners — what added funding will be used for, what core programs will be maintained, and what the organization will transition away from. She told commissioners the emphasis this year is on external marketing to attract visitors to Chattanooga rather than advertising locally, noting the organization markets primarily to a 50– to 70–mile drive market and uses digital, programmatic and PR campaigns.

Harris and her marketing chief described targeted outreach to cultural and heritage groups and said the office will include local events such as the South Chattanooga Juneteenth celebration in its events calendar and social rotation. "If the students can't see themselves somewhere, they'll never go there," Harris said when describing efforts to show diverse audiences in tourism creative.

Commissioners pressed Harris about whether the city and county can reach a long-term lodging-tax split. Harris said a consultant study of lodging taxes is underway and that county and city mayors and the consultant are expected to meet in May to review options. She argued a percentage-based formula would let tourism plan longer term and could increase the total pool for product development and promotion.

Harris also highlighted sales work supporting conventions and trade shows, including an upcoming Women in Travel Summit expected to bring more than 500 travel journalists to the city. She noted recent recognition in national outlets and a string of events (including IBMA World of Bluegrass) that support hospitality employment; she said there were roughly 30,000 hospitality industry employees in the county.

What’s next: Harris said the tourism board and municipal partners expect to present consultant recommendations after stakeholder meetings with mayors and that commissioners should expect follow-up as those negotiations and data reviews proceed.