Two-minute impact
Following passage of House Bill 5311 in 2023 which allowed the township to begin collecting mixed-beverage taxes, the township was also granted the ability to create a tourism-based economic development zone.
Under the bill, the zone would be made up of hotels in The Woodlands and provide an additional 2% charge to hotel rooms which can be passed on to the customer or absorbed directly by the hotel. The funds would be used by The Woodlands Convention and Visitors Bureau for additional advertising and promotion efforts to drive hotel stays in the township.
As previously reported by Community Impact, the township projected an annual revenue benefit of around $2 million from the new assessment which would directly go towards creating additional advertising initiatives for The Woodlands.
“The Woodlands Tourism Economic Development Zone would enhance sales and marketing efforts for The Woodlands hotels,” the letter reads. “This Tourism Zone will also allow The Woodlands to compete effectively with Texas cities and other cities across the country for an increased market share of leisure, event, and group travel.”
Why now?
While the bill was passed in 2023, the tourism EDZ was not initially created while the township awaited input from hotels. However, board members said the effort to create the district has been renewed to continue growing tourism and marketing for the township.
To formally create the district, hotels will have to file a formal petition with the township. As part of the agreement, hotels within the district will be able to work with Visit The Woodlands to create marketing strategies and materials to highlight their areas.
Under the bill, hotels which choose to join the EDZ can also choose to dissolve the district with a petition of at least 60% of participating hotels.
In their words
- “Visit The Woodlands is all in for creating a Tourism Economic Development Zone. This new zone would boost marketing efforts for local hotels, helping The Woodlands stand out more on a state and national stage. The initiative is to make The Woodlands a top choice for leisure, event and group travel,” said board member Linda Nelson, who also serves as board chair for Visit The Woodlands.
- “The Township board of directors are united in believing that this move is in the best interest of the hotel community," board chair Brad Bailey said. "Visit The Woodlands, the convention and visitors bureau authorized by The Woodlands Township, will be responsible for designing and implementing the sales and marketing plans, with valuable input from all participating hotels. This initiative can bring more visitors and conventions to The Woodlands, benefiting the local economy and enhancing the overall visitor experience.”
