Tourism Public Improvement District (TPID) Overview

What is a TPID?

  • A tourism public improvement district, or TPID, is a mechanism for funding tourism promotion activities. Funds raised through a small assessment on lodging stays within a designated geographic area are used to provide services desired by and directly benefitting the participating business in the district. 
  • For San Antonio, area hoteliers are proposing a 1.25% assessment on a room night.  These assessments in turn are invested into a San Antonio TPID to increase funding for sales and marketing initiatives that would help increase demand by attracting more conventions, group meetings, and visitors to San Antonio as well as protect and grow a key segment of San Antonio’s economy.

Why is it Important for San Antonio?

  • The TPID is designed to help drive business to the participating hotels in the district through additional overnight stays. 
  • A byproduct of the TPID is that it also provides the San Antonio community with additional resources for its residents as these visitors bring additional spending into the community generating job growth, quality of life opportunities, incremental taxes (sales/hotel/other), and added opportunities for arts and history/preservation efforts. 

How Does it Work?

  • San Antonio is proposing two corridors:  Downtown corridor (Zone 1) and Outside of downtown corridor (Zone 2).  Only hotels with 100+ rooms participate in the TPID.  A TPID Board will be established composed solely of San Antonio hoteliers who are selected from the participating hotels.
  • TPID fees collected by San Antonio hotels would be remitted by the hotels to the City along with the monthly hotel occupancy tax.  Based on a service plan, the City would then direct the TPID fees to VSA on behalf of the TPID Board for investment into sales and marketing programs.
  • The TPID Board directs VSA on sales and marketing investment strategies affecting the respective zone.  It is estimated the TPID will afford approximately $10+ million annually in additional funding for sales and marketing efforts.