AUSTIN, Texas — Austin leaders have given the green light to a plan that will help tackle tourism once the city’s convention center undergoes renovations.
Councilmembers approved the Tourism Public Improvement District on Thursday, which is expected to bring in new revenue while Austin’s Convention Center starts its mass expansion project in May.
The convention center will close its doors in April before demolition starts in May. Since the center is right in the middle of downtown, Councilmember Ryan Alter said the city is set to face a dip in tourism.
That’s where the Tourism Public Improvement Districts come in. It works as a tool to offset costs while keeping businesses and hotels afloat amid the years-long construction. The $1.6 billion project is expected to wrap in 2028.
”What [it] will help do is incentivize business to continue to come here,” Alter said. “Whether it’s conventions or conferences, to help promote those to happen here in Austin. Not necessarily at the convention center, but help make up for some of that lost business.”
Hotels will be allowed to implement a 2% tax on overall stays. That extra cash will then be collected quarterly, which will then be directed to a board that will be created to manage the fund.
According to Alter, the surcharge is set to take effect on Jan. 1, 2025, with the first collection happening in April.
”A 2% fee, I think, is pretty reasonable and helps to continue the tourism and hotel business that we want to see here in Austin,” Alter said.
This week, city leaders also noted that they would be extending construction hours by three hours each day to reduce the demolition time and keep the completion date on track.