In many jurisdictions, bed taxes are used to partially fund tourist amenities.  Of course, IVGID is not a tourist district so it gets no share of the bed tax, nor can it collect such a tax.

Other communities rely on participation from local businesses to fund tourist attractions.  The Hyatt and other businesses have learned they can rely on IVGID to provide high end attractions with plenty of “excess capacity” so there is no need for them to contribute to the capital improvements.  The property owners get saddled with a rec fee, even though they have no say in the decisions.

What would happen if IVGID stopped funding these improvements?  Wouldn’t the Hyatt want to ensure our golf courses, tennis facilities, etc. are continuously maintained and improved to satisfy their discerning clients?

Initially hotel operators were charged the equivalent of half a rec fee for each hotel room.  But that fee mysteriously disappeared in the 1980’s. Today the Hyatt, with some 400 plus hotel rooms, only pays 2 rec fees.  They essentially pay nothing for the capital improvements used by their guests.  For the most part, IVGID’s venues seldom even cover the cost of their operations.  All capital expenses are paid by the rec fees.  Hospitality businesses need to pay a greater share of our capital intensive business operations like golf, ski and tennis.

Reno Sparks Conventions and Visitors Authority, the agency that collects the occupancy taxes, needs to realize that some of these taxes need to come back to the “tourist amenities” in the area where those taxes are generated.   Legislation might be required to make this happen.