Business Strategy: Hotel tax and reallocated funding to propel tourism

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Last week, voters in Oklahoma City approved a tax increase on hotels, from 5.5% to 9.25%, starting October 1- to include independent peer-to-peer lodging businesses, like Air BnB and Verbo. The vote will usher in expedited funding for further tourism developments and the high 66% approval from voters signals public commitment to further developing the city’s attractions.

Oklahoma City’s tourism industry is thriving, as a 2023 report showed a $4.5 billion economic impact and nearly 35,000 jobs supported by the growing industry. The report showed visitors spent $2.7 billion on food, lodging, and entertainment. Much of the increased revenue will be devoted to promotion and marketing for our existing attractions, to help people across the US find what we consider this hidden gem of a city.

The economic impact and the benefits of improved recreation are valued by residents and visitors alike. Last week’s vote is a sign that residents of our city feel the positive impacts of tourism spending and investments. The message is clear that continued development and investment in tourism have strong public support.

Hotel taxes have not been adjusted since 2004 when voters approved the last increase. Even with last week’s increase, Oklahoma City’s rate remains lower than that of many peer cities, protecting our status as an affordable place to visit.

Oklahoma City has become a top tourism destination in the region thanks to new developments, facility improvements, and strategic marketing. A revitalized downtown, new convention center space, and sports facilities have attracted visitors in greater numbers than ever before.

These investments have been overwhelmingly successful- validating steps to bolster our tourism industry, with new levels of funding. City leadership is committed to continued growth, investing in infrastructure and large-scale events, ensuring Oklahoma City remains a premier travel destination.

The vote marks a major win for Oklahoma City. With additional funding now secured, the city can invest further in promoting OKC. Decades of investment in attractions and infrastructure are paying off. Oklahoma City has been a great place to live and visit for some time, and the expanded budget for promotion and growth will help us spread the word and share OKC with more visitors than ever before.

Kenton Tsoodle is the president of The Alliance for Economic Development of Oklahoma City.