§ 20-2. Findings.

(a) In general.

The following findings are critical to the exercise of the Authority set forth in the Enabling Legislation.

(b) Importance of tourism in Baltimore.

(1) Tourism is a major contributor to Baltimore's economy, with visitor spending generating approximately $10 billion annually in total industry sales. This activity generates $290 million in taxes and fees to the City of Baltimore annually, revenue that supports valuable City services, while also saving each Baltimore household $680 in annual personal tax contributions.

(2) Tourism is a major employer in Baltimore, creating or sustaining more than 85,000 jobs for City residents and across the region each year.

(3) In addition to generating jobs and tax revenues, a thriving tourism industry benefits Baltimore by sustaining air travel, creating familiarity, attracting decision makers as well as future residents and workers, and improving the quality of life for all residents.

(1) Funding for Baltimore convention sales and tourism promotion is allocated by law to Visit Baltimore, Inc., a private and independent not-for-profit, non-stock corporation, in the form of a percentage share of the City hotel occupancy tax collection. This organization has been historically under-resourced in an increasingly competitive tourism market. For example, market research quantifies a lack of overall awareness about and interest in Baltimore as a preferred tourism destination. These challenges can be addressed through increased sales and marketing activities.

(2) Visit Baltimore is poised to deliver the enhanced marketing and sales infrastructure required to generate impact pending sufficient resources – and the hotel community has identified an opportunity for a self-funding and industry-managed mechanism, involving no new taxes for local residents, to support these programs.

(3) The ultimate goal of these programs will be to drive increased overnight visitation, in turn, supporting the bottom line of not only the city's hotel community, but also, benefitting all visitor-facing businesses as well as City residents through additional economic and quality of life benefits for the City of Baltimore.

(d) Concept of tourism improvement district.

(1) A tourism improvement district is a proven mechanism by which assessed business owners within a defined area can agree to impose a special assessment on themselves in order to provide enhanced and supplemental services designed to increase tourism within the district and benefit the assessed businesses paying the special assessment.

(2) Tourism improvement districts have been created in over 160 destinations in 14 states across the country, and the reports received suggest that they are almost uniformly highly successful in achieving their objectives.

(3) Critical to any tourism improvement district is the creation of a partnership between the public and private sector, with the public sector committing to maintain funding for tourism promotion services at specified levels and the private sector agreeing to accept new special assessments for the purpose of supplementing publicly funded tourism promotion services.

(4) A tourism improvement district in this City cannot be successful without the full cooperation of the City and the assessed businesses within the District.

(e) Considerations.

(1) The Council has considered the materials compiled by Visit Baltimore regarding the creation of the Baltimore Tourism Improvement District and the pattern of success for such districts elsewhere.

(2) The Council finds that establishing the Baltimore Tourism Improvement District is an important and vital element of the long-term health and growth of City's tourism industry and the City.

(3) The Council finds that a special assessment system for the Baltimore Tourism Improvement District should be uncomplicated, direct, and fair. The system provided for in this subtitle satisfies such criteria.

(4) The Council finds that the Baltimore Tourism Improvement District should encourage the involvement of minorities in the operation of the District and in the business community itself.