ABOUT TOURISM IMPROVEMENT AREAS
The Tourism Improvement Area (TIA) is a private-sector-driven initiative designed to boost Arizona’s economy by enhancing tourism marketing and promotion. Through voluntary contributions from lodging businesses representing 67% or more of total rooms within a designated area, the TIA creates a dedicated fund to attract more visitors, increase spending, and support local jobs—all without relying on resident taxpayer dollars. This innovative approach empowers communities to showcase their unique attractions, drive economic growth, enhance quality of life and ensure Arizona remains a competitive and thriving destination for travelers.
Tourism Improvement Areas - Strengthening Arizona’s Economy & Resident Quality of Life
HOW WOULD A TIA WORK?
01
Lodging business owners within a proposed Tourism Improvement Area (TIA) submit a petition representing at least 67% of the total rooms in the district to initiate formation. The local governing body then holds a public hearing and votes on approval.
02
Lodging businesses apply a nightly assessment of up to $5 or 5% per room and submit payments directly to the Arizona Department of Revenue. The collected funds are then distributed to the designated Tourism Improvement Area (TIA).
03
Funds are managed by a designated TIA Owners’ Board, made up primarily of lodging business owners or their representatives, ensuring proper oversight and transparency. All funds must be used exclusively for tourism marketing, visitor attraction initiatives, and programs that drive overnight stays and economic growth within the TIA.
04
Marketing campaigns and tourism initiatives are launched to attract visitors, increase overnight stays, and drive spending in the local community.
Follow HB2873 through the legislative process.
WHY SHOULD ARIZONA ENABLE TOURISM IMPROVEMENT AREAS?
1
Arizona needs to stay competitive
Arizona is losing valuable market share to states like Texas and California, which are significantly outspending us in tourism marketing. This bill creates a private-sector-driven solution to level the playing field, giving us the tools to effectively compete and bring visitors back to Arizona, all without relying on public taxpayer funding.
2
Not a mandate
This legislation simply gives municipalities the option to establish a Tourism Improvement Area (TIA) if they choose, and regardless of whether your district adopts it, you’ll still benefit from increased visitors and higher spending statewide.
3
Business growth
The Tourism Improvement Area (TIA) is a business-driven initiative designed to fuel economic growth by attracting more visitors, increasing spending, and creating jobs. By empowering local businesses to lead the way, TIA strengthens Arizona’s economy and ensures we remain competitive in the national and global tourism markets.
23
States who have passed TIA legislation
215
Tourism Improvement Areas
4.5%
Lift in Hotel Room Revenue after TIA was established
2.1%
Lift in Room Demand after TIA was established