Visit Montgomery warns cuts to extra appropriations would force programmatic reductions as hotel taxes lag recovery

Visit Montgomery officials told the Economic Development Committee that hotel-motel tax revenue has not yet returned to pre-pandemic levels and that the organization relies on county appropriations above the statutory 7% baseline to finance marketing and destination promotion.

Staff showed that Visit Montgomery historically received a county appropriation above the required 7% share and that current FY27 scenarios assume additional funds that are not legally mandatory. If the county limits funding to the statutory 7% share, Visit Montgomery’s packet shows programmatic cuts concentrated in marketing, business development and events attendance; staff warned that even modest cuts could have outsized effects on local tourism economic impact.

Visit Montgomery presented industry data showing occupancy declines year-to-date but improved booking pacing for upcoming months; staff highlighted a recent marketing campaign (a $30,000 investment) it said generated strong return metrics. Visitors and bookings shifted after a drop in government meetings; Visit Montgomery has focused on corporate and association markets and reported year-over-year booking production increases.

Councilmembers asked about short-term rental tax collection and the state law that will centralize collection and distribution to counties beginning in 2028; staff confirmed short-term rental (Airbnb/VRBO) collections are scheduled for centralized handling under new state rules, which could alter local tax receipts in future years.

Outcome: Committee discussion left the county executive’s inflationary adjustment intact while staff and members signaled interest in a longer-term conversation about funding formula and potential restructuring of how Visit Montgomery is financed.