Visit San Antonio warns convention‑center capacity is near limit; proposes TPID increase to sustain hotel demand

Visit San Antonio leaders and the Convention and Sports Facilities director briefed the council April 29 on the organization’s economic role and the upcoming TPID reauthorization.

Mario (presented in materials as Mario Bass), president and CEO of Visit San Antonio / Business San Antonio (VISTA San Antonio), described the organization’s work in convention sales, marketing and destination experience and said VSA has generated $7.6 billion in cumulative economic impact over the past nine years. “These numbers before you are more than just metrics. They represent opportunity,” Mario said, adding VSA tracks dozens of performance measures and works closely with the convention center to secure group business.

Patricia Musquis Canto, director of the Convention and Sports Facilities Department, emphasized the city’s convention infrastructure is nearing capacity and that competing Texas cities are expanding convention space. She said an updated feasibility study for convention center expansion will be brought to council in September.

Visit San Antonio and hotel representatives outlined a proposal to reauthorize the Tourism Public Improvement District (TPID) and to adjust the TPID assessment from 1.25% to 2% to align with peer cities and to generate additional sales and marketing funds. Staff estimated that raising the assessment to 2% would provide roughly $6 million in incremental marketing dollars; the change requires hotel owner approval via petition (minimum 60% required by the TPID rules). Mario characterized the TPID as a tool that supplements, not replaces, hotel occupancy tax funding.

Council members asked for clearer, verifiable links between VSA activities and local economic returns. Staff said VSA reports more than 30 metrics quarterly — room nights, events booked, leads generated, economic impact — and that independent analysis (for example, work by Trinity University’s economics department) backs overall impact estimates.

Council also raised concerns about short‑term rentals shifting demand away from hotels, how TPID funds are allocated across downtown and other zones, and how the city can ensure tourism investments tangibly benefit neighborhoods and local small businesses. Staff said TPID governance includes zone representation and that funds are intended to be incremental to existing hotel occupancy tax activities; staff also committed to follow‑up answers on hotel incentive use, zone‑by‑zone allocations and the petition timeline.

Patricia and Mario said petition collection for TPID reauthorization would begin in May and that a Visit San Antonio contract vote would be expected in September; staff and councilmembers flagged the convention center feasibility study and ongoing coordination with project partners as critical to protecting San Antonio’s meetings market.

The session closed with council members stressing accessibility to events for residents, opportunities for local artists, and a request that staff provide tighter metrics to show how tourism investments translate into local economic benefits.