SATPID 101
In 2018, San Antonio hoteliers decided to invest in the future of our City and our economy.
They came together and created the San Antonio Tourism Public Improvement District (SATPID).
The purpose of the SATPID is to utilize the TPID assessment fees to drive increased hotel business demand for participating properties through strategic sales and marketing initiatives.
f.a.q.
what is the satpid and how does it operate?
On December 6, 2018, the San Antonio City Council approved the creation of a San Antonio Tourism Public Improvement District that went into effect beginning January 1, 2019.
In accordance with Texas law, hotels with 100 rooms or more within the City limits of San Antonio participate in the district.
The TPID assessment is not a tax, but a fee, that only applies to hotel stays that are also subject to City hotel occupancy tax.
Hotels in the District charge a 1.25% pass-through fee on each taxable room night folio that covers the cost of the TPID assessment for the hotel. The TPID fees are remitted to the City under the same schedule and process now in place for payment of the hotel occupancy tax.
Establishing a San Antonio Tourism Public Improvement District offers the local hotel industry an unparalleled opportunity to increase demand for area hotel activity. This demand would be boosted through enhanced funding for marketing and sales to attract more transient business, group meetings, conventions, and business travel activity.
The primary goal of the TPID is to increase targeted sales and marketing efforts to generate additional demand for local hotel activity. The service plan requires a 7:1 cumulative return on Tourism District expenditures. Per the management agreement, the SATPID Budget is allocated as follows:
90% |Sales and Marketing Initiatives
5% | Industry Partnerships with the San Antonio Hotel & Lodging Association, the Texas Hotel & Lodging Association, and Visit San Antonio
5% | Research & Administration
The TPID Governing Board, is comprised solely of representatives from stakeholder hotels within the District, and reflects the geographic and size distributions (with defined room count groupings) that are in place for stakeholder hotels within the District.
The TPID Board includes six seats representing Zone 1 (central business district hotels) and five board seats representing Zone 2 (hotels outside the central business district). Board members from both zones ensure that each zone’s needs, and priorities are incorporated into the annual budget.
To ensure consensus and protect the return on investment, draft bylaws call for a super majority vote (75%) to adopt the budget. Visit San Antonio acts as the administrative entity implementing the programs authorized by the TPID Board.
No. The initial TPID contract establishes the TPID for eight years, until January 1, 2027. After that time period, the District’s existence can be renewed, refined or dissolved. The District can also be dissolved at any time through a petition of over sixty percent (60%) of the area hoteliers. For the District to be renewed, it would also need the approval by a petition of over sixty percent of the area hoteliers and final approval by the City Council.
SATPID Zones
The SATPID boundaries include two zones:
Zone 1 | Central Business District
Zone 2 | Outside of Central Business District
The primary driver of the recognition of two zones is to facilitate marketing and sales strategies that are impactful to hotels within each of the two participating zones and to determine the composition of the SATPID Corporation (SATPIDC) Board of Directors. Additionally, the SATPIDC will provide direction and oversight to Visit San Antonio on the various sales and marketing investment strategies undertaken with SATPID funds.
