A Tourism Improvement District (TID) is a dedicated source of funding for destination marketing, with the goal of increasing the number of visitors to the region, increasing hotel room sales and, overall, increasing the economic impact of tourism on the region. TIDs are enabled by law; they are versions of Neighborhood Improvement Districts (NID) and legislated accordingly by the state in which they are located.

TIDs are not funded by taxpayer dollars. Rather, TIDs are funded via an assessment placed on lodging stays (generally by non-residents) within the boundary of the TID (in this case, Allegheny County). Those funds would then be governed and managed apart from the existing hotel tax revenue and may only be used for destination marketing, expanding the County’s ability to promote itself to better align with the promotional efforts of its competitive markets. Ultimately, this effort would generate new business for the county’s hotels.

Such an ongoing funding loop enables a self-sustainable revenue stream for as long as the TID is in place, having a significant, positive impact on both the local lodging and tourism sector, but also on the local workforce as the revenue generated from the TID will support thousands of local jobs and provide significant economic impact to the region.

There are 193 TIDs across the country, three of which are in Pennsylvania: one in Philadelphia and two in municipalities in Berks County.

Allegheny County’s TID is expected to generate $9 million per year, funding that is sorely needed. 

In 2019, Allegheny County’s travel economy was valued at $6.5 billion and supported more than 43,000 jobs. However, COVID-19 had a dramatic impact on the local hotel and tourism industry, resulting in a loss of nearly 60% of room sales and nearly 50% of tourism-related revenue in 2020 compared to 2019. As so many markets across the country, particularly those with which Pittsburgh and Allegheny County compete, work to increase their tourism to pre-pandemic levels and further, the Pittsburgh area cannot fall behind.

The Allegheny County TID will enable the region to significantly boost tourism marketing in order to promote the region and increase the number of visitors here, boost the number of hotel rooms that are sold, and, notably, grow the local economy by supporting the creation of jobs, generating revenue for ancillary businesses and improving local quality of life.

The TID will be run by a designated governance committee consisting of hoteliers from across the county.  The committee will be required to develop and follow by-laws specific to this TID, advise on the future development of the TID, and approve the annual investment plan and updates provided by VisitPITTSBURGH.

All funding must be used for regional destination marketing. The plan must be adhered to for the life of the TID and can only be amended via vote by the TID’s Board.

Once approved by Allegheny County Council, the TID will be created for a five-year term, with the option of renewing the term if approved by the TID’s Board of Directors. The TID can also be dismantled before the end of the term if the Board deems it ineffective and votes to do so.