What Is A Tourism Improvement District (TID)?

A Tourism Improvement District (TID) is a public-private partnership that funds marketing, promotional activities, and infrastructure improvements to enhance a destination’s appeal to visitors. Established through local government authorization, TIDs are financed by assessments on businesses, typically hotels, within a defined district. Funds support tourism-related initiatives such as advertising, events, beautification projects, and visitor services, aiming to increase economic activity. Unlike traditional taxes, TID revenue is controlled by industry stakeholders to directly benefit the assessed businesses. TIDs are common in cities and resort areas seeking sustainable tourism growth without relying on general taxpayer dollars.