Mesa's Tourism Improvement District (TIA)

A hotel-led investment in overnight demand

The proposed Mesa Tourism Improvement Area would allow participating lodging businesses to collectively invest in attracting more overnight visitors, meetings, conventions, tournaments and events to Mesa.

The proposal

What is a Tourism Improvement Area?

A Tourism Improvement Area, or TIA, allows lodging businesses within a defined area to pool resources for tourism sales, marketing, branding and communications.

Under the proposed Mesa TIA, participating hotels, motels, inns and resorts would pay an assessment equal to 1.85% of gross guest room revenue. The funds would be used specifically to increase overnight visitation and room-night production at participating lodging businesses.

The TIA is not a general city tax. It is a lodging business assessment that applies only to eligible properties that choose to participate.

Why Mesa, why now

Stronger tools to compete

More than 220 tourism improvement districts across 26 states already have dedicated funding to pursue the same visitors, meetings, conventions, tournaments and events.

  • Create stable, predictable funding focused on overnight demand.
  • Expand Mesa's sales reach and generate more qualified hotel leads.
  • Provide stronger incentives and bid support for groups and events.
  • Increase visibility and booking access for participating properties.
  • Target need periods, productive feeder markets and high-value opportunities.
  • Supplement existing tourism funding rather than replace it.

How it works

The proposed assessment

Guest room revenue only

The initial assessment would be 1.85% of gross guest room revenue. It would not apply to food and beverage, meeting-space rental, audio-visual services, retail purchases or other on-property spending.

Can it appear on the guest folio?
Legally, the assessment is imposed on the participating lodging business. A participating property may pass it through to the guest and display it as a separate line item, consistent with the final TIA plan and collection guidance.

Voluntary participation

  • Businesses that sign the formation petition become participants when the TIA is established.
  • Signing the petition commits the property to the initial year.
  • Eligible properties that do not initially sign may join after formation.
  • Beginning one year after formation, businesses may join or withdraw during an annual 60-day period.
  • Only participating lodging businesses are subject to the assessment.
  • Vacation rentals and short-term rental units would not be included.

Proposed programs

What the investment would support

Meetings and convention sales

Trade shows, sales missions, planner outreach and lead generation designed to secure conferences, meetings and group business.

Sports and event acquisition

Partnerships, sales efforts, bid support and incentives designed to secure tournaments, festivals and events that generate hotel room nights.

Room-night lead generation

Outreach to sports teams, tour groups, reunions, associations and other groups requiring Mesa lodging.

Targeted advertising

Data-driven advertising, public relations, brand content and direct booking pathways designed to convert out-of-market audiences into overnight visitors.

FAMs and site visits

Opportunities to bring decision-makers to Mesa and showcase participating hotels, venues, service providers and local experiences.

Research and partnerships

Market intelligence, performance measurement and industry partnerships focused on need periods, high-potential audiences and extended stays.

Initial financial plan

Where the money would go

Proposed first-year Tourism Improvement Area budget
UseEstimated amountShare
Sales, marketing and communications$2,554,25085%
Administration$300,50010%
Contingency and reserve$120,2004%
Collection$30,0501%
Total$3,005,000100%

This initial estimate is based on projected assessed room revenue at the proposed 1.85% rate. Actual collections will depend on participating properties and room revenue. Annual allocations may be adjusted based on program needs, actual collections and Owners' Board approval, consistent with the final TIA plan.

Governance

Hotel-led oversight

The Mesa TIA would be governed by an Owners' Board operating as a committee of the Visit Mesa Board of Directors. A majority of its members would be participating lodging business owners or their authorized representatives. Members would not be required to serve on the Visit Mesa Board.

A City of Mesa representative would serve as a nonvoting, ex-officio member. Visit Mesa would develop the annual budget and spending priorities with the Owners' Board, which would hold final budget approval.

Accountability and safeguards

  • TIA revenue and expenditures would be tracked separately from Visit Mesa's other funding.
  • Annual reporting would identify programs, expenditures, results and funds carried forward.
  • TIA activity would be included in Visit Mesa's regular financial reporting and audit process.
  • Funds must benefit assessed lodging businesses and associated industries.
  • Funds may not support physical infrastructure or unrelated capital projects.

Coordinated, not duplicated

One destination marketing program

The TIA would not create a separate Mesa brand or an entirely separate marketing program. TIA-supported activities would be coordinated with Visit Mesa's broader sales, marketing and communications strategy.

TIA funds would remain separately accounted for and would primarily support out-of-market campaigns and activities intended to generate overnight stays. General local advertising without a clear room-night objective would continue to be funded through other sources.

How success would be measured

  • Meetings, events and tournaments booked
  • Associated room nights generated
  • Qualified hotel leads and conversions
  • Campaign performance and return on investment
  • Hotel demand and room-revenue trends
  • Visitor spending and visitor-generated tax revenue
  • Incremental site inspections and familiarization tours

Formation process

How the Mesa TIA would be established

Review and petition

Eligible lodging business owners review the proposed plan and sign the formation petition.

Submit to the City

The proposed TIA plan and formation petition are submitted to the City of Mesa.

Resolution of intention

City Council considers a resolution of intention to begin the public process.

Notice and hearing

Lodging business owners and the public receive notice, followed by a public hearing.

Formation decision

City Council considers the proposed plan, initial assessment and final formation.

Collection begins

Assessment collection begins following the required implementation period.

Assessment collection is currently anticipated to begin in June 2027, subject to final formation and statutory timing.

The fine print, minus the fog

Frequently asked questions

Is the TIA a new citywide tax?

No. The assessment would apply only to eligible lodging businesses that voluntarily participate. It is separate from Mesa's existing hotel taxes and is not imposed on residents generally.

Who is responsible for paying the assessment?

The legal responsibility belongs to the participating lodging business. The property may pass the assessment through to the guest as a separate folio charge, consistent with the final plan and collection guidance.

Does signing the petition mean my property is participating?

Yes. A lodging business that signs the formation petition becomes a participant when the TIA is established and is included for the initial year.

Can a property join later or withdraw?

Yes. Eligible properties that do not initially sign may join during the periods established under state law. Beginning one year after formation, participating businesses may withdraw during an annual 60-day period.

Who decides how the money is spent?

The hotel-majority Owners' Board would approve annual spending priorities and the budget. Visit Mesa would manage and implement the approved programs.

Can the City use TIA funds for other purposes?

No. Revenue must support eligible activities benefiting assessed lodging businesses and associated industries. It cannot be redirected to unrelated government programs, physical infrastructure or capital projects.

Will Visit Mesa operate two marketing programs?

No. Visit Mesa would operate one coordinated destination strategy. TIA funds would be separately tracked and could only support eligible activities designed to generate overnight demand for participating properties.

Can the assessment rate increase automatically?

No. The proposed initial rate is 1.85%. The proposed plan may allow adjustments up to 2.5%, with no annual adjustment greater than 0.25 percentage points. Any increase would follow the approvals, notice and public process required under the final TIA plan and Arizona law. No increase is currently anticipated.

Who collects the assessment?

The Arizona Department of Revenue would collect the assessment. Funds would then be transmitted through the City of Mesa to Visit Mesa for approved TIA activities.