Tourism funding is shifting nationwide, with 221 TIDs now operating across 25 states and new legislation emerging every year. This section helps destinations understand how TID models work, analyze the legal stability of their revenue streams, and evaluate risks such as legislative or local government action. Use this framework to benchmark funding stability and strengthen long-term financial resilience.

Destination organizations face intensifying pressure as traditional public funding becomes more politically vulnerable and subject to diversion. This section outlines the shifting funding landscape, including rising competition for public dollars, philosophical opposition to tourism spending, and new laws that reallocate bed tax revenue, and explores stable, proactive solutions such as TIDs, assessments, increment financing, and diversified private revenue. Learn how destinations can build long-term funding stability through stronger advocacy, trust-building, and data-backed strategies.

Arizona’s tourism industry drives billions in spending, tax revenue, and local jobs, but other states are gaining ground. HB 2873 offers a powerful new way to compete. This bill would allow Arizona cities to create Tourism Improvement Areas (TIAs), a self-sustaining funding source that supports marketing, events, and infrastructure without relying on taxpayer dollars.

Across the U.S., communities with TIAs have seen stronger hotel demand, new revenue, and long-term growth. By adopting TIAs, Arizona could generate more than $140 million in new tax revenue while keeping its tourism economy strong and competitive.