Pullman now eligible for special tourism designation
Hotels can bring in revenue for tourism; city also set to receive $9.6M from American Rescue Plan Act
Pullman hotels are now eligible to charge additional room fees to provide revenue for promoting tourism in the city.
Pullman City Administrator Mike Urban on Tuesday presented information about the Tourism Promotion Area — or TPA — designation with the City Council.
He said Washington legislators last year removed a population requirement prohibiting counties with fewer than 40,000 people to create such a designation.
If the area is established in Pullman, hotels with 40 or more rooms can charge as much as $2 per room per night. There are seven Pullman hotels that have more than 40 rooms, totaling 666 rooms.
The charges are collected by the state’s Department of Revenue and then distributed to the city or county that created the tourism area. That money can then be used on expenses related to promoting tourism.
To establish the tourism promotion area, hotels must petition the city to create one, and then provide a description of the proposed area and proposed uses of the money. A public hearing also is required before the area is established.
Urban said these added room charges have “become so widely accepted across the state, it’s kind of an afterthought nowadays.”
During Tuesday’s City Council meeting, Urban also informed the council that Pullman will be allocated $9.6 million from the American Rescue Plan Act.
The council authorized Mayor Glenn Johnson to enter into agreements with the U.S. Department of the Treasury and the Washington State Office of Financial Management to let the city access these funds.
The city will receive half of the money this year and the second half in 2022.
Urban said he plans to contact the state soon to get specific guidance on how the city can spend the money, which is broadly intended for expenses related to the COVID-19 pandemic between March 3, 2020, and the end of 2024.
The council Tuesday also directed the city to negotiate a contract with Golden Shovel, a marketing consultant out of Minnesota, to create a marketing plan with the goal of attracting businesses and people to Pullman.
The city hopes to see results of the plan within 18 months with a $50,000 budget. Golden Shovel’s proposal was one of six sent to the city.
Kuipers can be reached at akuipers@dnews.com.
