The Austin City Council approved a plan to create the Tourism Public Improvement District (TPID). It will generate new revenue during the Austin Convention Center (ACC) expansion starting in May.
Hotels with more than 100 rooms across the city will fund the district through a 2% nightly room fee. The TPID will generate approximately $390 million in revenue over 10 years, according to estimates.
This 2% fee will incentivize meeting and convention business to continue in Austin even when the convention center is closed. Funds can cover meeting room rental fees, shuttles, or hotel room rebates, subject to approval by the TPID board.
Tom Noonan, president & CEO of Visit Austin emphasizes that the city will continue hosting events during construction. “We’re not closed for meetings business between ‘25 and ‘29. We will host meetings in the city even when the convention center is closed. Our focus will be on groups meeting in our hotels,” he said.
The center will close on April 1, 2025, after South by Southwest. Demolition begins in May.
Convention Center to Close for Four Years
Austin will go without its main convention center for four years. City leaders say the closure was unavoidable. Noonan explains that Austin was losing 50% of its leads due to lack of space at the current center.
“Austin is the 11th largest city in the U.S., but currently, we have the 59th largest convention center,” said Noonan. “This new center allows us to be more competitive within the state and with our major national competitors.”
Several hotels have partnered under “collections” organized by Visit Austin. They offer planners a streamlined multi-property solution for hosting events in the city.
Funds Will Keep Austin Competitve
The TPID launches on January 1, 2025, with collections starting on April 1, 2025.
“This funding will help us maintain Austin’s competitive edge in hosting conventions, conferences, and events, ensuring we continue to attract significant meetings business, leisure travel and economic activity,” said Noonan. “By dedicating additional resources to tourism promotion, we’ll not only boost our overall visitor economy but also create a bridge of support for our industry during this important infrastructure upgrade.”
The Austin TPID will run for ten years, through 2035. In addition to offsetting lost hotel nights during the convention center’s closure, funds will help fill the expanded ACC when it reopens in 2029.
The Texas Hotel Lodging Association, Austin Hotel Lodging Association, Visit Austin, Austin Convention Center Department, city staff, hotel ownership groups, and industry consultants worked together to make the TPID possible.
