By Katrina Van Duzee/Garden Grove Journal
In effort to shift from public to private ways of financing collective tourism marketing in uncertain times, the Garden Grove City Council passed a resolution to establish a Tourism Improvement District on Tuesday.
The proposed TID, if established, will add a tax onto visitors’ hotel fee for each night they stay in a Garden Grove hotel, the staff report said. The tax would include hotels and motels from Harbor Boulevard to Garden Grove Boulevard and is projected to bring in $2 million annually.
Nearby cities such as Irvine, Huntington Beach and Newport Beach have recently passed TID’s according to the Anaheim/ Orange County Visitor and Convention Bureau.
The Tourism District would separate Garden Grove into two zones adding a tax of 2.5 percent per night to hotels in tier one, North of Lampson Avenue and .05 percent per night for hotels in tier two, south of Lampson Avenue. There are currently no hotels in tier two.
The money generated will go primarily towards marketing efforts with about 20 percent funding specific improvements in Garden Grove’s hospitality industry.
It is not anticipated the city will incur significant direct costs and the tax will affect visitors only, not locals, according to the report.
A public meeting on this issue is scheduled for the Sept. 28,.