How are sponsorships awarded?
Once the CVB has determined that an event/facility/convention has met state law requirements, sponsorships will be considered based on available funding, number of requests, and the number of overnight visitors generated by each individual requestor. State law provides Convention and Visitors Bureaus the option as to who receives funding but does not mandate that sponsorships have to be awarded. Once state laws are met, the CVB has discretion as to how the funds are used to promote tourism.
There is a two-part test that every expenditure of local occupant tax must meet to be valid by state law.
Criteria #1: First, every expenditure must DIRECTLY enhance and promote tourism and the conventions and hotel industry. In other words, a funded event or facility must be likely to do two things: 1) directly promote tourism; and 2) directly promote the convention and hotel industry. With regards to the first prong of Criteria #1, tourism is defined under Texas State law as bringing visitors from outside of the city (from a different city or country) into the city or its vicinity. With regards to the second prong of Criteria #1 the event or facility must be likely to cause increased hotel or convention activity.
Criteria #2: Every expenditure of hotel occupancy tax must clearly fit into one of the six statutorily provided categories for expenditure of local hotel occupancy tax revenues.
- Funding the establishment, improvement, or maintenance of a convention center or visitor information center.
- Paying the administrative costs for facilitating convention registration.
- Paying for advertising, solicitations, and promotions that attract tourists and convention delegates to the city or its vicinity.
- Expenditures that promote the arts. (arts related expenditure must be likely to directly promote tourism and the hotel and convention industry)
- Funding historical restoration or preservation programs (that are likely to attract tourists and hotel guests)
- Funding costs in certain countries to hold sporting events that substantially increase hotel activity.
Summary of the Six Uses
In summary, local hotel occupancy tax revenues only may be spent to establish or enhance a convention center or visitor information center, cover the administrative expenses for registering convention delegates, pay for tourism-related advertising and promotions, fund art programs or facilities that will directly promote tourism and hotel and convention activity, fund historic restoration or preservation projects that promote tourism and hotel and convention activity, or in counties with population of us 290,000 to fund certain costs for holding sporting event that substantially increase local hotel activity.
What can the Graham Convention & Visitors Bureau do for you?
The Graham Convention and Visitors Bureau (CVB) is a close-knit group of friendly, enthusiastic, high-level professionals committed to making your event the best ever. Offering all-encompassing service for your group’s needs, we at the Graham Convention and Visitors Bureau are here to help you at every step along the way.