tourism promotion spending

Explore Two Rivers’ board had a treasurer report listed as an action item.

Tourism staff reported 2025 room tax revenue finished about 10% lower than 2024 and the Room Tax Commission ended the year with a little over $75,000 in its general fund.

A Room Tax Commission agenda included items on a civic brand effort: a national travel/tourism event, brand partners, brand ambassadors, and community input.

Main Street’s director presented a draft 2026 budget; Main Street projected a 2026 deficit and attributed part of the change to room tax support dropping from $12,000 to $6,000, plus sponsorship challenges.

Board members questioned discrepancies in 2024 historical numbers, attributed to a reconciliation that year.

A Room Tax Commission representative and a private investor tied to the Cobblestone Hotel presented an alternative financing concept for improvements to the Neshotah Beach building using room tax dollars, event-space revenue, donations, and borrowing.

Council members raised concerns that if projected revenues do not materialize, the city would still be responsible for payments, leaving taxpayers carrying the downside risk.

Staff described the approach as a potential “test case.”

Explore Two Rivers’ board had a treasurer’s report listed as an action item.

A city committee voted 2-0 to recommend the 2026 budgets and a proposed 4.05% property tax levy increase to City Council, contingent on changes including seeking an additional $5,000 from the Room Tax Committee.

Explore Two Rivers’ board reviewed “I LOVE TR” campaign merchandise and generally approved the lineup, with feedback including mug quality and logo orientation.

An update on Erickson’s production of “I LOVE TR” apparel was not discussed because a key member (Joe) was absent.

A meeting agenda included an action item titled “Funding Request for Civic Brand Site Visit.”

Staff reported 2025 room-tax revenue was significantly below budget, with the decline beginning in April.

Staff cited the NFL Draft as an example of an event expected to boost bookings that did not materialize for Two Rivers.

Staff forecast the room-tax reserve fund would end 2025 at $62,299, below the commission’s $90,000 goal.

The commission expected to revisit 2026 budget adjustments at its Q1 2026 meeting.

The Room Tax Commission approved a draft 2026 tourism and room tax budget using conservative revenue targets based on 2024 actuals, citing a slow start to 2025 and economic uncertainty.

The commission reserved $30,000 previously aimed at the rest stop area for future capital improvements tied directly to tourism/overnight stays.

The commission ended a $12,000 allocation to Two Rivers Main Street and redirected that funding to Explore Two Rivers marketing, while asking Main Street for a business plan with measurable results before future consideration.

The commission approved $3,000 for Washington House, with another $1,000 available if Washington House brings forward a plan to expand hours and increase visitor engagement.

Staff said the budget would be shared with Explore Two Rivers so it can build its 2026 marketing plan within these limits.

An agenda item was scheduled to amend the room tax ordinance to include RV overnight stays.

City Council adopted an ordinance applying the city’s 8% room tax to short-term RV and camper stays.

The adopted ordinance requires separate reporting for RV/camper room-tax revenue.

The ordinance passed on a 7-0 vote.

Explore Two Rivers’ board reviewed its National Travel and Tourism Week event and discussed changes for next time, including giving vendors more time and possibly rotating venues.

Explore Two Rivers’ board approved proceeding with an independent printed 2027 visitor guide and earmarked $10,000 in room-tax funds to start, while discussing total costs up to about $20,000 depending on print quantity and ad sales.

In discussing the 2027 visitor guide, the board noted Visit Manitowoc plans to publish its own 2027 guide and said Explore Two Rivers chose to keep control of its own printed guide; the board also agreed the guide should market the broader region alongside Two Rivers.

The board discussed next steps for “I Love TR,” including using “community ambassadors,” creating onboarding materials for new employees about local history and tourism’s economic role, and planning another ambassador meeting for late June with visibility at summer events.