DULUTH — Metropolis officers have begun their annual evaluate of how tourism tax proceeds are being put to make use of, they usually’re additionally accepting funding requests for the yr to come back.
In 2022, tourism tax collections totaled almost $13.8 million. And thru the primary 5 months of 2023, receipts are working 10% forward of final yr’s tempo.
Duluth’s tourism business already is working hotter than it did previous to the pandemic and is hitting new highs.
“Increasingly individuals are visiting Duluth,” Mayor Emily Larson stated in a press release. “On just about each measure, we’ve got surpassed final yr in addition to our greatest pre-pandemic document — extra guests, longer stays, greater income, over and above inflation.
“However my favourite statistic is that 15 of Duluth’s 23 neighborhoods noticed elevated visitation. Which means extra enterprise for native eating places and inns, native retailers, native theaters, native gasoline stations and native grocery shops,” she stated.
The tourism tax is a gross sales tax charged for native resort and motel stays, in addition to on gross sales of meals and drinks at eating places and bars all through town. The proceeds from the devoted tax are legislatively earmarked and should be used completely to help Duluth’s tourism business.
Along with helping native organizations and sights, the fund additionally pays to advertise Duluth as a vacation spot, with
$1.8 million going to Bellmont Companions
, a Twin Cities agency, for advertising and marketing companies.
One other $6.7 million goes to service long-term debt for big tasks, equivalent to leisure investments made all through the St. Louis River hall, enhancements to Spirit Mountain’s infrastructure and tasks on the Duluth Leisure Conference Heart.
Town channels greater than $1.2 million from tourism tax collections into its common fund, as nicely, to assist cowl among the prices related to internet hosting massive public occasions, equivalent to Grandma’s Marathon, Fourth Fest and the Bayfront Blues Competition.
Starting in 2017, Larson launched a brand new protocol to judge town’s use of tourism tax receipts. Underneath her administration, previous recipients of the funds have been required to report annually on how the cash was spent and to what helpful impact.
Larson additionally initiated a proper software course of by which organizations may search future funding. Town started accepting these purposes for 2024 on Friday and can proceed to take action till 5 p.m. July 31.
The kinds for organizations to report efficiency and to hunt tourism help tax subsequent yr can be found at
duluthmn.gov/finance/tourism-tax-allocation.
Senior financial developer Tricia Hobbs inspired certified candidates to submit requests, referring to the method as an opportunity “for organizations to inform their story, to inform the group what you do, why you do it and the way your work helps our tourism business.”
A full itemizing of the present tourism tax recipients, together with the sum of money they obtain, is on the market on pages 205-206 of the 2023 metropolis finances report at
duluthmn.gov/media/15483/2023-final-budget-book.pdf.
In explaining the thought behind the allocation of these funds, Larson earlier informed the Information Tribune: “As our tourism financial system continues to develop, so does the duty to make sure that we’re investing these monetary sources properly, transparently and with a optimistic customer expertise in thoughts.
“Having a sturdy tourism sector of this magnitude means having world-class sights, museums and leisure experiences year-round for our residents, too. For these causes and extra, it’s important we’re good stewards of those investments,” she stated.
Peter Passi covers metropolis authorities for the Duluth Information Tribune. He joined the paper in April 2000, initially as a enterprise reporter however has labored a lot of beats by means of the years.
