Explore Fairbanks asks borough for $2.5 million, urges return to 65% bed‑tax allocation
March 19, 2026 | Fairbanks North Star (Borough), Alaska
This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »
Explore Fairbanks President Scott McCray urged the Assembly Finance Committee on Thursday to restore the destination marketing organization’s share of bed‑tax revenue to the level envisioned in the borough’s original ordinance, and formally requested a $2,500,000 borough appropriation for the coming fiscal year.
McCray told the committee that combined bed‑tax collections for the borough, City of Fairbanks and City of North Pole totaled about $9.2 million in 2025 and said Explore Fairbanks’ FY‑27 request is based on receiving 65% of projected bed‑tax revenues. “If my one takeaway message from all that I’m going to present today is I’m hoping we can move that in the right direction and we get back to us receiving the 65% of those revenues,” McCray said.
Why it matters: McCray argued that bed‑tax dollars are a primary funding source for destination marketing that drives visitation and local economic activity. He said Explore Fairbanks used new research tools (including a platform called Datify and airport Wi‑Fi surveys) to better target high‑value markets and to identify short‑term rentals that may be failing to remit taxes. Those tools, he said, also inform decisions about where to invest advertising and sales efforts.
Key details: McCray reported that the organization holds roughly $5.2 million in reserves, allocated across operating, designated and balancing purposes. He said Explore Fairbanks plans to use any additional borough funds primarily for direct marketing—purchasing ads, hosting tour operators on familiarization trips and attending trade shows—and not to increase board compensation. On the request amount he said the ask is “based on a projection of 65% of the revenues for FY ’27,” which Explore Fairbanks conservatively projects at $3.9 million.
Responses and follow‑up: Assembly members pressed staff and McCray on several topics: the sample size and frequency of airport survey comments about transportation access; whether short‑term rental collections could meaningfully increase revenues; and why the organization is drawing $1.0 million from reserves to balance its 2026 budget. McCray said short‑term‑rental identification software should help recover back taxes and that the industry generally opposes bed‑tax increases unless the new revenue is tied to a specific tourism asset. Mayor Hopkins asked about car‑rental data and transportation gaps; McCray said Explore Fairbanks does not currently track car‑rental days but could pursue the data.
What’s next: The funding request will be considered in upcoming budget deliberations for FY‑27. McCray also invited assembly members to an Explore Fairbanks board meeting, where developers of a proposed North Star Grand Lodge plan to present details to the tourism board this week.
McCray told the committee that combined bed‑tax collections for the borough, City of Fairbanks and City of North Pole totaled about $9.2 million in 2025 and said Explore Fairbanks’ FY‑27 request is based on receiving 65% of projected bed‑tax revenues. “If my one takeaway message from all that I’m going to present today is I’m hoping we can move that in the right direction and we get back to us receiving the 65% of those revenues,” McCray said.
Why it matters: McCray argued that bed‑tax dollars are a primary funding source for destination marketing that drives visitation and local economic activity. He said Explore Fairbanks used new research tools (including a platform called Datify and airport Wi‑Fi surveys) to better target high‑value markets and to identify short‑term rentals that may be failing to remit taxes. Those tools, he said, also inform decisions about where to invest advertising and sales efforts.
Key details: McCray reported that the organization holds roughly $5.2 million in reserves, allocated across operating, designated and balancing purposes. He said Explore Fairbanks plans to use any additional borough funds primarily for direct marketing—purchasing ads, hosting tour operators on familiarization trips and attending trade shows—and not to increase board compensation. On the request amount he said the ask is “based on a projection of 65% of the revenues for FY ’27,” which Explore Fairbanks conservatively projects at $3.9 million.
Responses and follow‑up: Assembly members pressed staff and McCray on several topics: the sample size and frequency of airport survey comments about transportation access; whether short‑term rental collections could meaningfully increase revenues; and why the organization is drawing $1.0 million from reserves to balance its 2026 budget. McCray said short‑term‑rental identification software should help recover back taxes and that the industry generally opposes bed‑tax increases unless the new revenue is tied to a specific tourism asset. Mayor Hopkins asked about car‑rental data and transportation gaps; McCray said Explore Fairbanks does not currently track car‑rental days but could pursue the data.
What’s next: The funding request will be considered in upcoming budget deliberations for FY‑27. McCray also invited assembly members to an Explore Fairbanks board meeting, where developers of a proposed North Star Grand Lodge plan to present details to the tourism board this week.
View the Full Meeting & All Its Details
This article offers just a summary. Unlock complete video, transcripts, and insights as a Founder Member.
✓
Watch full, unedited meeting videos
✓
Search every word spoken in unlimited transcripts
✓
AI summaries & real-time alerts (all government levels)
✓
Permanent access to expanding government content
30-day money-back guarantee
