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Lodging Tax Advisory Committee (LTAC) / Tourism Commission

BEL-TOU-2025-06-24 June 24, 2025 City Council Regular Meeting City of Bellingham 90 min
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The Lodging Tax Advisory Committee met to review the 2026 draft budget and consider significant mid-year amendments to the 2025 budget, marking an unusual departure from their typical budget cycle. The committee approved a scaled-down version of staff's budget amendment request, increasing administrative costs from $60,000 to $90,000 and adding $100,000 (rather than the requested $250,000) for World Cup watch party events. The meeting revealed growing concerns about tourism revenue trends, with lodging tax down 10% in recent months and hotels reporting significant booking declines for summer 2025. Staff presented an ambitious proposal for World Cup fan zone events at the waterfront district, requesting $250,000 in additional funding to complement Seattle's official World Cup hosting duties. However, committee members expressed skepticism about the return on investment, particularly given current geopolitical tensions affecting Canadian visitor numbers and uncertainty about whether watch parties would generate meaningful tourism revenue. The committee also discussed a proposed $450,000 capital contribution toward a $3 million waterfront skate park project, positioned as a tourism facility that could host competitions and events. This request will be presented in detail at the September meeting, along with presentations from the Mount Baker Theater and Museum seeking their annual allocations. The meeting highlighted broader challenges facing Bellingham's tourism industry, with hoteliers reporting 15-20% decreases in summer bookings compared to 2024, reduced Canadian visitors due to border concerns, and a notable absence of the walk-in leisure travel that typically drives peak season occupancy.

**2025 Budget Amendment - APPROVED (Modified)** - **Staff Request:** Increase administration from $60,000 to $90,000; increase World Cup funding from $50,000 to $300,000 - **LTAC Action:** Approved administration increase to $90,000; approved World Cup increase to $150,000 (adding $100,000 to existing $50,000) - **Vote Count:** Unanimous approval after discussion - **Key Details:** Committee reduced World Cup request by $150,000, requ…

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**World Cup Fan Zone Funding Debate** The committee engaged in extensive discussion about the proposed World Cup watch party events, revealing fundamental disagreements about tourism potential and return on investment. Staff argued that the events could capture overflow visitors from Seattle and Vancouver games, noting that up to 750,000 people might visit Seattle and 900,000 could visit Vancouver during the tournament. However, hoteliers on the committee expressed skepticism, with one member noting "None of us are expecting our hotels to be full for any of these watch parties." The discussion highlighted uncertainty about whether watch parties would attract tourists or primarily serve local audiences, with staff acknowledging they're still "trying to figure out who to expect" since team assignments won't be known until December 2025. The committee ultimately compromised on partial funding, with members expressing willingness to support the project but demanding detailed budget breakdowns before committing to the full request. **Tourism Revenue Decline and Market Challenges** St…
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**Sarah (Community Development Staff):** Advocated for full World Cup funding, emphasizing the need to secure equipment and planning resources early. Argued that Bellingham is "ahead of the rest of the State" in World Cup planning but may not remain so without adequate funding. **Christine Jenkins (Hotel Bellaria):** Expressed cautious support for tourism investments while seeking detailed budget justification. Reported seeing increases in small group retreat business focused on mental health and wellness. **Mark Blake:** Supported the World Cup concept but advocated for splitting funding between 2025 and 2026 budgets. Drew comparisons to other successful events and emphasized the need for strategic planning. **Kevin Coleman:** Expressed strong concerns about the World C…
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**Sarah, on World Cup planning urgency:** "I do know we're ahead of the rest of the State, and I'm not sure we're going to be ahead of the rest of the State much longer. And we we're gonna need to start getting 1st in line for screens and things like that." **Christine Jenkins, on budget transparency:** "My hesitancy is is not knowing what that 300,000 I mean, I'm hearing some of the things it's gonna be used for, but it's just not presented... I think having more budget line items than a num…
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**September 2025 Meeting:** - Mount Baker Theater annual presentation - Museum annual presentation - Waterfront Skate Park detailed presentation with mayor attendance expected - World Cup detailed budget breakdown for additional funding consideration - 2026 draft budget updates **October 2025 Meeting:** - Final budget recommendations to City Council - Grant application reviews - Lengthier meeting format f…

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**Budget Authorizations:** - 2025 administrative budget increased from $60,000 to $90,000 - World Cup funding increased from $50,000 to $150,000 (partial approval of $300,000 request) - Remaining $150,000 World Cup request deferred to September with detailed budget requirement **Process Changes:** - Established precedent for mid-ye…
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# Bellingham Tourism Commission Grapples With World Cup Funding Request The Bellingham Tourism Commission faced its most contentious budget debate in recent memory on June 24th, as commissioners struggled with a massive funding request for World Cup 2026 watch parties while tourism revenues decline and Canadian visitors remain scarce. ## Meeting Overview The Tourism Commission met at 3:30 PM in the Mayor's Boardroom at City Hall, with nearly all members present for what would become a lengthy discussion about the future of tourism funding in Bellingham. The meeting, which seamlessly transitioned between the Tourism Commission and the Lodging Tax Advisory Committee (LTAC), centered on two critical budget matters: a routine administrative increase and a controversial $250,000 request for World Cup 2026 fan zone events. What made this meeting particularly significant was the tension between tourism industry expectations and staff proposals. For the first time in memory, LTAC members — many of them hoteliers who directly fund tourism initiatives through lodging taxes — pushed back forcefully against a major funding request, citing uncertainty about return on investment during an already challenging tourism climate. ## The 2026 Budget Preview: Setting the Stage Before diving into the contentious budget amendments, Tourism Commission staff member Tara Sundin presented the draft 2026 budget, offering a glimpse into the financial landscape ahead. The presentation revealed both stability and significant changes in tourism funding priorities. "As a reminder, before we go on summer vacation, which is the next 2 months, I typically present a draft budget," Sundin explained. The process follows a well-established timeline: September brings presentations from major partners like the Mount Baker Theater and Whatcom Museum, October brings the heavy lifting of grant application reviews and final budget decisions. The draft budget showed reserves still holding steady at over $2 million, despite projecting a 10% decrease in lodging tax revenue. "Lodging tax is trending about 10% down in the last 2 months. So I'm projecting a 10% decrease hopefully, it won't go that low," Sundin said, noting they only had two months of data since revenue collecti…
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### Meeting Overview The Bellingham Tourism Commission met on June 24, 2025, to review the draft 2026 budget and vote on mid-year amendments to the 2025 budget. The commission discussed a significant funding request for World Cup watch party events and increased administrative costs due to new staffing. ### Key Terms and Concepts **LTAC (Lodging Tax Advisory Committee):** A subset of Tourism Commission members who make recommendations on how lodging tax revenue should be spent. Only certain commission members can vote on budget matters. **Tourism-Related Facility:** Public facilities owned and operated by the city that attract visitors, like theaters, museums, or recreation venues. State law requires city ownership for lodging tax funding. **World Cup Watch Parties:** Planned events at Bellingham's Waterfront District to show 2026 FIFA World Cup matches on large screens, with entertainment and activities to showcase local businesses and attractions. **Budget Amendment:** A mid-year change to increase spending authority beyond what was originally approved, requiring formal vote by LTAC. **Icap (Internal Cost Allocation Plan):** A formula-based system where each city fund pays its share of overhead costs like legal services, finance, and HR support. **Room Nights/ROI:** Hotel stays generated by events, used to measure whether tourism investments are paying off through increased visitor spending. **TPA (Tourism Promotion Area):** A funding mechanism managed by Bellingham Whatcom County Tourism, separate from but coordinated with lodging tax funds. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Peter Frazier | Tourism Commission Chair | | Hollie Huthman | City Council Representative, LTAC Chair | | Tara Sundin | City staff, Planning & Community Development | | Sara Holliday | LTAC member, hotelier | | Christine Jenkins | LTAC member, Hotel Bella representative | | Marc Blake | LTAC member | | Dylan Deane-Boyle | Bellingham Whatcom County Tourism | | John…
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Budget & Finance Economic Development Government Operations Bellingham Whatcom County Tourism Fifa Seattle Lodging Tax Advisory Committee Mount Baker Theater Port Of Bellingham Tourism Promotion Area Christine Jenkins Dylan Tpa John Purdie Kevin Coleman Lindsay Tourism Mark Blake Matt Lesinski Nick Kelly Sarah Community Development Canadian Border Downtown Activation Event Planning Hotel Occupancy Lodging Tax Marketing Strategy Skate Park Tourism Budget Waterfront Development Waterfront Skate Park World Cup Events