Bloomington-Normal groups are having early conversations about creating a Tourism Improvement District that would impose fees of up to 5% for hotel and short-term rental guests.
The Bloomington-Normal Hotel and Lodging Association would have to petition to create the fee that would be spent on bringing in new events and people to the community.
"They would be more in control of how those dollars are being spent. They bristle at times at tax increases that end up going back into government and they're not really able to manage their relationship with people who are coming in and paying these fees," said Beth Whisman, outgoing chair of the Bloomington-Normal Area Convention and Visitors Bureau board.
Chicago and Peoria have tourism improvement districts. Peoria’s fee is 1.5%.
"The state only really allowed these tourism improvement districts beginning in 2023. So, this is really even a new process statewide. It's exciting to be at the start of the conversations," said Melissa Chrisman, director of the Bloomington Normal Area Convention and Visitors Bureau.
She said it it took Peoria several years to work through the process.
Hospitality businesses seeking such a fee would get some say in how the money is spent, although revenues from the charge go to a “state-certified Convention and Visitors Bureau or existing tourism nonprofit for marketing, sales efforts, events and other local promotional activities that enhance area tourism,” according to the City of Chicago guidelines for such districts.
New tourism improvement districts must be renewed within five years, and each subsequent certification can last no longer than a decade, allowing hoteliers to opt out in the future.
Tourism makes the community more vibrant, diverse, and livable, said Chrisman.
“The money that Visit BN and the visitor economy is bringing in is other people's money that is not on the backs of our residents,” she said.
Whisman said tourism offers more than visitor dollars to use on infrastructure and quality of life.
“We're getting people to consider us as a good place to live, and there's generations coming behind us that are making those decisions every day, and we want to be well positioned for that,” she said.
The convention and visitors bureau already gets funding from hotel-motel taxes and state grants.
