Kristen Reynolds, simply two months into her position as president and CEO of Select Chicago, is concentrated on what she calls a crucial precedence. Establishing a Chicago Tourism Enchancment District (CTID) to safe long-term funding.
Model USA’s $80-million funding lower highlights the urgency.
“Sustainable funding is so necessary. We’re one election away from individuals not understanding what we do, and want diversified and sustainable funding to guard us,” Reynolds mentioned.
The Chicago Tourism Enchancment District would add a 1.5% surcharge to room charges at accommodations with 100 rooms or extra in an outlined geographic space. That may carry Chicago’s lodge tax — already 17.39% — to 18.89%, the very best amongst main U.S. conference locations.
“We’re shut,” Reynolds mentioned, noting that the Illinois Resort & Lodging Affiliation (IHLA) has been engaged on the initiative for 2 years.
Proposed Resort Surcharge Would Fund Advertising and Gross sales
Roughly half of the funds could be used for worldwide and home advertising; the rest would help gross sales and bidding efforts.
“For practically a decade, Select Chicago has been lagging in worldwide presence. Because of a state price range stalemate, worldwide workplaces needed to be closed,” mentioned Michael Jacobson, president of the Illinois Resort & Lodging Affiliation.
The plan is to re-establish these workplaces when the TID goes into impact. As well as, there shall be a advertising push within the drive market.
Incentives to Meet in Chicago
The fund would even be used to cowl bid charges and money incentives — instruments competing cities use to win large-scale occasions.
“For a number of years, now we have heard from assembly planners who have been supplied money incentives to carry citywides to sure locations. We didn’t have a price range for this,” Jacobson mentioned. “It will re-establish our aggressive edge. We aren’t asking for metropolis cash or state cash. We’re asking the town to authorize us to go and gather assessments ourselves.”
Bid charges alone could be a important barrier. Getting into the competitors for the Democratic Nationwide Conference, for instance, required a $1 million bid simply to be thought of.
As excessive as Chicago’s lodge tax could also be, Jacobson mentioned the secret’s to remain under 20%.
“We are able to’t hit that quantity, as that’s the hazard zone,” mentioned Jacobson.
Help is encouraging, he mentioned. “A majority of lodge homeowners signed on within the final two months. We’re assured we’ll see motion within the subsequent couple of months and start assortment in January of subsequent 12 months,” he mentioned.
Chicago had 55.3 million guests in 2024. A 6.5% improve from the prior 12 months, in accordance with ?Select Chicago. Preliminary estimates point out worldwide visitation topped 2 million for the primary time since 2019. A year-over-year improve of greater than 10%.
Select Chicago booked 1,891 conferences and conventions in 2024.
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September 15 – NEW YORK CITY
