In order to help advance San Antonio as a premier U.S. destination, industry and community partners including the City of San Antonio, San Antonio Hotel & Lodging Association, Texas Hotel Lodging Association and Visit San Antonio worked together to implement the new Public Improvement District. The establishment of the San Antonio Tourism Public Improvement District (SATPID) offers the local hotel industry an unparalleled opportunity to increase demand for area hotel activity through enhanced funding for marketing and sales to attract more group meetings, conventions, business and transient travel activity. 

 

Tourism Public Improvement Districts provide the only funding mechanism that enables the stakeholder hotels within the area to oversee the expenditure of the funds.

 

Hotels in San Antonio city limits with 100 rooms or more pay a 1.25% assessment on occupied rooms for the purpose of generating funds to market and promote San Antonio as a convention and tourism destination. To learn more about the SATPID click here.

­­Establishing the TPID

On December 6, 2018, the San Antonio City Council approved the creation of a San Antonio Tourism Public Improvement District (SATPID) 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 only applies to hotel stays that are also subject to City hotel occupancy tax. Hotels in the District will 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. 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.

TPID Zones

The SATPID has two zones.  Zone 1 consists of properties within the San Antonio Central Business District (CBD) and Zone 2 consists of properties outside the CBD but within the City limits of San Antonio.  The SATPID Corporation (SATPIDC) maintains a Board of Directors comprised proportionally of members of the two zones.  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.  Additionally, the SATPIDC will provide direction and oversight to Visit San Antonio on the various sales and marketing investment strategies undertaken with SATPID funds.

­­How Does the SATPID Work?

  • Hotels within San Antonio that have 100+ rooms self-impose a 1.25% fee on each taxable hotel room night.
  • The SATPID fee only applys to stays that are subject to the City hotel occupancy tax and are collected under the same schedule and process now in place for local hotel tax collections.
  • TPID revenue is then directed to Visit San Antonio, the administrative entity responsible for implementing the decisions and recommendations of the hotelier led TPID Corporation (SATPIDC) Board of Directors.
  • The annual TPID budget is expended in a manner that is consistent with the eight-year service plan that was approved as part of the petition for creation of the district by the stakeholder hotels within the district and by the San Antonio Council.
  • An annual SATPID budget and service plan is implemented by Visit San Antonio under the oversight of the SATPIDC Board composed solely of hoteliers within the District.

The SATPIDC Board is comprised of a proportionate representation of hotel operators within the Central Business District (Zone 1) and a proportionate representation of hotel operators located outside of the Central Business District (Zone 2). Having two zones will ensure the interests of hoteliers within each area of the City are represented and promoted.

 

CLICK HERE TO VIEW THE TPID BOARD OF DIRECTORS

 

HOW WILL THE FUNDS BE SPENT?

  • The primary goal of the TPID is to increase targeted sales and marketing efforts to generate additional demand for local hotel activity
  • 90% of the SATPID budget will be invested in increased sales and marketing initiatives (45% Marketing, 45% Sales)
  • 5% Industry Partnerships
  • 5% Research & Administration
  • The service plan requires a 7:1 cumulative return on Tourism District expenditures

­­How Did We Get Here?

To establish a TPID in San Antonio, state law required petition signatures requesting creation of the District by more than 60% of the hotels within the District boundaries.

  • 60+% of the number or surface area of hotels within the district AND
  • 60+% of the taxable value of the hotels within the district

Once sufficient petition signatures were obtained from hotel owners within the district, a formal request to establish a TPID was presented to City Council for consideration. When approved, the City of San Antonio entered into a contractual agreement with Visit San Antonio and with the TPID Corporation Board (that is composed solely of hoteliers within the district) to manage the TPID funded programs and expenditures.

Hotel Occupancy Tax Overview

­­For More Information

Visit the San Antonio Tourism Public Improvement District website at SATPID.com

 

To view the latest developments, check out the TPID Newsletter HERE