City's Tourism Improvement District Brings $11M Into Local Economy

HEALDSBURG, CA — Healdsburg's economy continues to increase year over year, thanks to the tourism and hospitality industry that accounts for a much of the city's growth over the past decade, Healdsburg Chamber of Commerce said last week.

In the article "Tourism supporting Healdsburg’s Quality of Life" published on the chamber's website Friday, Nov. 4, the chamber said that "there are now more hotels, restaurants, and wineries in Healdsburg than there have been at any point in the city’s vibrant 166-year history."

According to the chamber's report, those businesses are "powering an even brighter future" for the city which sits at the juncture of three prime winegrowing regions — the Russian River Valley, Dry Creek Valley, and Alexander Valley.

Healdsburg's Tourism and Improvement District, or TID model is the reason for the city's tourism successes.

"Essentially, for every dollar spent on hotel rooms within the city limits, our local government entities charge a total of 16 percent tax—tax that goes directly back into the community," the chamber explained. "Fourteen percent of that amount is the city’s Transient Occupancy Tax (TOT) tax, which is distributed into community services (10 percent); public safety (2 percent); and affordable housing (2 percent)."

The remaining 2 percent, the chamber said, goes into marketing Healdsburg to generate more TOT money down the road.

Collection from the TID model in 2022 yielded $11 million. That means visitors to Healdsburg put $11 million straight into the betterment of the community.

"Put differently, it means tourists contributed roughly $1,000 per resident," the chamber said.

Using simple math, it's safe to say that the more people who come and spend nights in Healdsburg hotels, the more money the city sees which equates to more resources for residents.

"These resources trickle down in many forms. More senior services. More summer programs. More public art. More transportation options. More public events. More development grants to local nonprofits. More policing. More housing. More parks," the chamber said.

According to the chamber, TID dollars are a direct benefit and don’t include the money that visitors contribute directly into the local economy in the form of food and beverages and goods and services purchased by those visitors.

"The reality," the chamber said, "Visitors help make Healdsburg better. For everyone. In a multitude of ways."

To read the full story on the Healdsburg Chamber of Commerce website, click here.